Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject: (i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed; (ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000; (iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice); (iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole; (v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less; (vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction; (vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect; (viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement; (ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time); (x) any Government Contract; (xi) any Related Party Contract; (xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and (xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.” (b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Agreement and Plan of Merger, Merger Agreement (Black Box Corp)
Material Contracts. (ai) Section 3.9(aSet forth on Schedule 4.2(p)(i) of the Company Entegra Disclosure Letter sets forth Memorandum is a true, correct, and complete list (arranged and correct list as categorized by the appropriate subsection of this Section 4.2(p)(i)) of the date of this Agreement, excluding any Contract that (x) is or relates following Contracts to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or the Bank, or any of its Subsidiaries has their Subsidiaries, is a party, by which the Company or the Bank, or any current or future rightsof their Subsidiaries, obligations or liabilities is bound, or to which the Company or any of its Subsidiaries the Bank, or any of their respective Subsidiaries, or any of the properties or assets of the Company or the Bank, or any of their Subsidiaries, are subject (whether or not actually set forth on such schedule, collectively, the “Entegra Material Contracts”): (A) any Contract that is subject:
a “material contract” as such term is defined in Item 601(b)(10) of the SEC’s Regulation S-K; (iB) any Contract that prohibits or restricts the Company or the Bank or any of their Subsidiaries, or any personnel of the Company or the Bank or any of their Subsidiaries, from conducting any certain type of business or conducting business in any certain geographic area or from competing with any Person or in any line of business; (C) any Contract (1) with any current director, officer, employee, or independent contractor of the Company or the Bank or any of their Subsidiaries or (2) with any former director, officer, employee, or independent contractor of the Company or the Bank or any of their Subsidiaries under or pursuant to which the Company or the Bank or any of their Subsidiaries is making or is or could be obligated to make payments in excess of $100,000 per year, in each case including without limitation any employment, severance, change of control, consulting, salary continuation, split dollar life insurance, survivor income, deferred compensation, or retirement agreement; (D) any Contract with any record or beneficial owner of five percent or more of the Company Common Stock; (E) any Contract that would be terminable other than by the Company or the Bank or their Subsidiaries, or under which a payment obligation (whether in the nature of a change of control or severance payment or otherwise) in excess of $100,000 would arise or be accelerated, in each case as a result of or upon the execution or delivery of this Agreement or the consummation of any of the transactions contemplated by this Agreement (either alone or upon the occurrence of any additional acts or events), including without limitation the Mergers or the Bank Merger; (F) any Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing Contracts for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment Bank Loans made in the ordinary course of business consistent and other than Contracts described in clause (L) below) that involves, or would reasonably be expected to involve, annual receipts or disbursements of $100,000 or more or aggregate receipts or disbursements of $250,000 or more over the life of the Contract; (G) any Contract that involves Intellectual Property (other than Contracts entered into in the ordinary course with past practice);
customers and “shrink-wrap” or “click-through” software licenses) that provides for, or would reasonably be expected to involve, annual receipts or disbursements of $50,000 or more or aggregate receipts or disbursements of $100,000 or more over the life of the Contract; (ivH) settlement agreement or similar any Contract with a Governmental Entity (A) involving future performance by that requires the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its SubsidiariesBank, or any of their respective Affiliates Subsidiaries, to purchase all of its requirements for a given product, good, or service from a given Person; (including Parent and its Affiliates after I) any partnership, joint venture, limited liability company, or similar Contract; (J) any Contract for the Effective Timelease or occupancy of real property; (K) any Contract that materially restricts the ability grants to any Person any right of first refusal, right of first offer, or similar right with respect to any assets, rights, properties, or securities of the Company or the Bank or any of its Subsidiaries or such Affiliate to compete in their Subsidiaries; (L) any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty relates to indebtedness of or borrowings of money (or guarantees of the same) by the Company or the Bank, or any of its Subsidiaries upon notice their Subsidiaries, in excess of 60 days or less;
$100,000 (vi) any Contract other than Contracts relating to customer deposit liabilities, Federal Home Loan Bank borrowings, and repurchase agreements with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement customers, in any material respect;
(viii) any Contracteach case created, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreementincurred, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers business); (M) any Contract between or among the Company or the Bank, on one hand, and any Subsidiaries or Affiliates of the Company or its Subsidiariesthe Bank, on the other hand; and
and (xiiiN) other Contracts any Contract that is material to the financial condition, results of operations, or business of the Company or the Bank or any of their Subsidiaries and which is not otherwise described in clauses (other than A) through (M). A true, correct, and complete copy (or, in the case of any oral Contract, a complete and accurate written description) of each Entegra Material Contract, as amended through the date of this Agreement, purchase orders has been previously provided or made available to SmartFinancial.
(ii) In each case except as, individually or in the ordinary course of business consistent with past practiceaggregate, agreements between the Company has not had and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would not reasonably be expected to result have a Material Adverse Effect on the Company, (A) each of the Entegra Material Contracts is in the receipt or making by full force and effect and is a valid and binding obligation of the Company or the Bank or their Subsidiaries, as applicable, and, to the Knowledge of the Company, each of the other parties thereto, enforceable against the Company or the Bank or their Subsidiaries, as applicable, and each of the other parties thereto in accordance with its terms, (B) the Company and the Bank and their Subsidiaries have performed all duties and obligations required to be performed by them under each Entegra Material Contract, (C) neither the Company nor the Bank nor any of its Subsidiaries of payments in their Subsidiaries, nor to the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) Knowledge of the Company Disclosure Letterany other party thereto, is referred in breach or violation of or default under any Entegra Material Contact, and there has not occurred any event that, with the lapse of time or the giving of notice or both, would constitute such a breach, violation, or default, and (D) no event has occurred and no circumstance or condition exists that, with or without notice or lapse of time or both, gives any Person, or will or could give any Person, (1) the right to herein as declare a “Company breach or default or exercise any remedy under any Entegra Material Contract, (2) the right to accelerate the maturity of or performance under any Entegra Material Contract, or (3) the right to cancel, terminate, or modify any Entegra Material Contract.”
(biii) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectEffect on the Company or a material and adverse effect on the business, properties, assets, liabilities, financial condition, operations, or results of operations of the Surviving Corporation and its Subsidiaries taken as a whole, (iA) no consents, approvals, waivers, or notices are required to be obtained, given, or delivered pursuant to the terms of any Entegra Material Contract as a result of the Entegra Parties’ execution, delivery, or performance of this Agreement or the Bank Merger Agreement or the consummation of the transactions contemplated hereby or thereby and (B) neither the Company Entegra Parties’ execution, delivery, or performance of this Agreement or the Bank Merger Agreement nor any of its Subsidiaries is (and, to the Knowledge consummation of the Company, no other party is) transactions contemplated hereby or thereby will result in any Person having the right to declare a breach or default or exercise any remedy under any Company Entegra Material Contract; accelerate the maturity of or performance under any Entegra Material Contract; or cancel, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of noticeterminate, or both) in breach thereunder and (iv) neither the Company nor modify any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Entegra Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Smartfinancial Inc.), Merger Agreement (Entegra Financial Corp.)
Material Contracts. (a) Section 3.9(a4.15(a) of the Company Sellers Disclosure Letter (which is arranged in subsections to correspond to the subsections of this Section 4.15(a)) sets forth a complete and correct list the following Contracts as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales any such Contract solely by or among the Trayport Companies) to which any Trayport Company is a party or by which it is bound or to which its assets or properties is subject (collectively, the “Material Contracts”):
(i) any Contract for Indebtedness;
(ii) any Contracts under which any Trayport Company has advanced or loaned any Person any amounts in excess of inventory$500,000;
(iii) any joint venture, product partnership, limited liability company, shareholder, or obsolete equipment in other similar Contract or arrangements relating to the ordinary course formation, creation, operation, management or control of business consistent any partnership, strategic alliance or joint venture with past practice)a third party;
(iv) settlement agreement any Contract or similar Contract with a Governmental Entity (A) involving future performance by the Company or series of related Contracts, including any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)option agreement, in any such case, which is material relating to the Company and its Subsidiariesacquisition or disposition of any business or real property (whether by merger, taken as a wholesale of stock, sale of assets or otherwise) for aggregate consideration in excess of $2,000,000;
(v) any Contract containing covenants binding upon for the voting of Securities of any Trayport Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with (including any exclusivity agreement) that purports to limit or restrict in any material respect to a joint venture either the type of business in which any Trayport Company may engage or partnership formed under the laws manner or locations in which any of them may so engage in any business or would require the disposition of any applicable jurisdictionmaterial assets or any line of business of any Trayport Company;
(vii) any Contract with a non-solicitation or non-compete provision that would prevent purports to limit or materially delay the Company from performing its obligations under this Agreement restrict in any material respectrespect any Trayport Company;
(viii) any Contract, excluding Contract with a “most-favored-nations” pricing provision or that purports to limit or restrict in any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementrespect any Trayport Company;
(ix) any Contract that contains Contract, other than such Contracts entered into in the Ordinary Course, under which (A) any exclusivity rights Person (other than any Trayport Company) has directly or “most favored nations” provisions indirectly guaranteed or minimum use provided an indemnity in respect of any liabilities, obligations or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the commitments of any Trayport Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent B) any Trayport Company has directly or its Affiliates after indirectly guaranteed or provided an indemnity in respect of liabilities, obligations or commitments of any other Person (other than any Trayport Company) (in each case other than endorsements for the Effective Timepurpose of collection in a commercially reasonable manner consistent with industry practice), unless such guarantor or indemnity obligation is less than $1,000,000;
(x) any Government ContractContract under which any Trayport Company has granted any Person registration rights (including demand and piggy-back registration rights);
(xi) any Related Party Contractmaterial Contract under which (A) any Trayport Company has granted any license, sublicense or other permission to any Person to use any Acquired Intellectual Property, except that non-exclusive licenses to customers of the Trayport Companies in the Ordinary Course are not required to be scheduled in subsection (xi) of Section 4.15(a) of the Sellers Disclosure Letter but are nevertheless included in the definition of Material Contracts herein; or (B) any Person has granted any license, sublicense or other permission to any Trayport Company to use any Intellectual Property other than Owned Intellectual Property;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses Contract that involves or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt involve expenditures of, or making by the receipts by, any Trayport Company or any of its Subsidiaries of payments in the future in excess of $100,000 3,000,000 in the aggregate per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – any calendar year;
(xiii) any material Contract with any Governmental Authority;
(xiv) any material Contract between or among a Trayport Company, on the one hand, and any Seller (or Affiliate thereof), on the other hand;
(xv) any Lease for a Trayport Leased Real Property, and any other Contract that is not excluded pursuant relates in any way to clause (x) the occupancy or (y) use of any of the lead-Trayport Leased Real Property;
(xvi) any employment agreement or outstanding offer letter that provides for annual compensation in language excess of $200,000;
(xvii) any Contract under which a Trayport Company has permitted any material asset to become subject to a Lien (other than a Permitted Lien);
(xviii) any outstanding general or special powers of attorney executed by or on behalf of a Trayport Company; and
(xix) any Contract the termination or breach of which or the failure to obtain consent in Section 3.9(a)), whether or not set forth on Section 3.9(a) respect of the Company Disclosure Letter, is referred to herein as which would have a “Company Business Material ContractAdverse Effect.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected material to have, individually or in the aggregate, a Company Material Adverse EffectBusiness, (i) neither the no Trayport Company nor any of its Subsidiaries is (and, to the Knowledge of the CompanySellers, no other party is) , in breach or violation of, or in default under under, any Company Material Contract, (ii) each Material Contract is a valid and binding agreement of the Company Material Contracts is Trayport Companies, as the case may be, enforceable in full force and effectaccordance with its terms, and is except for the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) to the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Knowledge of Sellers, no event has occurred which would result in a breach or violation of, or a default under, any Material Contracts and are not Contract (in each case, with or without the notice or lapse of time or the giving of noticeboth), or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination each Material Contract (including all modifications and amendments thereto and waivers thereunder) is in full force and effect with respect toto the Trayport Companies, as applicable, and, to the Knowledge of Sellers, with respect to the Companyother parties thereto, no party and an accurate and complete copy of which has threatened been delivered or made available to terminate, any Company Material ContractPurchaser.
Appears in 2 contracts
Sources: Stock Purchase Agreement, Stock Purchase Agreement (BGC Partners, Inc.)
Material Contracts. (a) Section 3.9(aExcept for the contracts disclosed in ------------------ Schedule 3.12 (collectively, the "Contracts") of the Company Disclosure Letter sets forth a complete and correct list as of the date of or any other Schedule to this ------------- --------- Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively with respect to the BBGS Business Business, Seller is not a party to or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectsubject to:
(i) any Customer Contract (or service, sales, distribution or other than this Agreement) that is required to be filed similar agreement providing for the sale by the Company as a material contract pursuant to Item 601(b)(10) Seller of Regulation S-K of the SEC but is not so filedmaterials, supplies, goods, services, equipment or other assets;
(ii) indentureany partnership, credit agreement, loan agreement, security agreement, guarantee, note, mortgage joint venture or other evidence of Indebtedness similar contract, arrangement or agreement providing for Indebtedness in excess of $100,000agreement;
(iii) Contract any contract relating to indebtedness for borrowed money or the deferred purchase price of property (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventorywhether incurred, product assumed, guaranteed or obsolete equipment in the ordinary course of business consistent with past practicesecured by an asset);
(iv) settlement any license agreement, franchise agreement or agreement in respect of similar Contract with a Governmental Entity (A) involving future performance rights granted to or held by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeSeller;
(v) any Contract containing covenants binding upon agreement, contract or commitment that substantially limits the Company, any freedom of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate Seller to compete in any business, line of business or with any Person or in any geographic areaarea or to own, except for operate, sell, transfer, pledge or otherwise dispose of or encumber any such Contract Purchased Asset or that may be canceled without penalty by would so limit the Company or any freedom of its Subsidiaries upon notice of 60 days or lessthe Buyer after the Closing Date;
(vi) any Contract agreement, contract or commitment which is or relates to an agreement with respect to a joint venture or partnership formed under for the laws benefit of any applicable jurisdiction;Affiliate of Seller; or
(vii) any Contract that would prevent other agreement, contract or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does commitment not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into made in the ordinary course of business consistent with past practice with customers of which is material to the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein Business taken as a “Company Material Contractwhole.”
(b) True Each Contract disclosed in any Schedule to this Agreement or required to be disclosed pursuant to Section 3.12(a) is valid and correct in all material respects copies binding agreement of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts Seller and is in full force and effect, and is the validneither Seller nor, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge knowledge of Seller and the CompanyMembers, any other party thereto is in default in any material respect under the terms of the other parties theretoany such Contract, subject nor, to the General Enforceability Exceptionsknowledge of Seller and the Members, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (has any event or circumstance occurred that, with notice or without the lapse of time or the giving both, would constitute any event of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contractdefault thereunder.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Greenwich Technology Partners Inc), Asset Purchase Agreement (Greenwich Technology Partners Inc)
Material Contracts. (a) Except for Contracts that are filed as an exhibit to a Company SEC Report, Section 3.9(a5.18(a) of the Company Disclosure Letter sets forth contains an accurate and complete list of the following Contracts to which the Company or the Company Subsidiary is a complete and correct list party or by which it is bound as of the date hereof (each such Contract, whether or not set forth in such section of this Agreementthe Company Disclosure Letter, excluding a “Material Contract”):
(i) each Contract (A) relating to the employment of, or the performance of services by, any director, officer, employee or individual Contractor, requiring or otherwise involving the payment by the Company or the Company Subsidiary in excess of $250,000 in the fiscal year ended December 31, 2012, (B) the terms of which obligate or may in the future obligate the Company or the Company Subsidiary to make any severance, termination or similar payment to any current or former employee in excess of $250,000, or (C) pursuant to which the Company or the Company Subsidiary may be obligated to make any bonus or similar payment to any current or former employee or director in excess of $250,000;
(ii) each Contract (A) materially limiting the freedom or right of the Company or the Company Subsidiary (or, after the Acceptance Time, Parent or any of its Affiliates) to engage in any line of business, including the research, development and commercialization of the Company Products, to make use of any material Company Intellectual Property or to compete with any other Person in any location or line of business, (B) containing any “most favored nations” terms and conditions (including with respect to pricing) or exclusivity obligations, (C) granting any right of first refusal, right of first offer or similar right or (D) containing any other term, condition or clause that, individually or in the aggregate, limits or purports to limit in any material respect the ability of the Company or the Company Subsidiary to own, operate, manufacture, sell, distribute, transfer, pledge or otherwise dispose of any material assets or business of the Company or the Company Subsidiary (or, after the Acceptance Time, Parent or its Affiliates);
(iii) each Related Party Transaction;
(iv) each Contract that provides for indemnification (xor reimbursement or advancement of legal fees or expenses) is of any current or relates to a former officer, director or employee of the Company Plan, or the Company Subsidiary;
(yv) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) Lease under which the Company or the Company Subsidiary leases, subleases or licenses any real property;
(vi) each Contract requiring or otherwise involving the potential payment by or to the Company or the Company Subsidiary of its Subsidiaries has more than (A) $500,000 in any current fiscal year or future rights(B) $1,000,000 in the aggregate, obligations in each case, except for those that are terminable by the Company or liabilities the Company Subsidiary, without cost or penalty, on 90 days’ or less notice;
(vii) each Contract (A) in which the Company or the Company Subsidiary have agreed to purchase a minimum quantity of goods relating to any product or product candidate or (B) pursuant to which the Company or the Company Subsidiary has continuing obligations or interests involving the payment of royalties or other amounts calculated based upon the revenues or income of the Company or the Company Subsidiary, in each case, except for those that are terminable by the Company or the Company Subsidiary, without cost or penalty, on 90 days’ or less notice;
(viii) each Contract for the disposition of any significant portion of the assets or business of the Company or the Company Subsidiary or any agreement for the acquisition, directly or indirectly, of a material portion of the assets or business of any other Person (whether by merger, sale of stock or assets or otherwise);
(ix) each Contract creating or governing any joint venture, partnership, strategic alliance, collaboration or similar arrangement;
(x) each Contract pursuant to which the Company or the Company Subsidiary has been granted by any Person any license to any Intellectual Property, or any other option, covenant not to ▇▇▇, non-assertion protection, freedom from suit, release, or settlement in respect of Intellectual Property, in each case if material with respect to any of its Subsidiaries or the Company Products (provided that the foregoing does not include any of their respective properties or assets is subject:licenses for off-the-shelf personal computer software that are commercially available under non-discriminatory pricing terms on a retail basis);
(ixi) each Contract that relates to the supply or manufacturing of any Company Product requiring or otherwise involving the potential payment by or to the Company or the Company Subsidiary of more than (A) $100,000 in any fiscal year or (B) $500,000 in the aggregate, except for those relating exclusively to routine office and scientific supplies;
(xii) each Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment trade debt incurred in the ordinary course of business consistent with past practice)) related to (A) borrowed money and any guarantees thereof or (B) the granting of material Liens over the property or assets of the Company or the Company Subsidiary;
(ivxiii) settlement agreement each Contract under which the Company or the Company Subsidiary have, directly or indirectly, made any advance, loan, extension of credit or capital contribution to, or other investment in, any Person other than the Company Subsidiary, in each case in an amount in excess of $500,000;
(xiv) each Contract containing a standstill or similar Contract with a Governmental Entity obligation (Awhich remains in effect) involving future performance by pursuant to which any Affiliate of the Company may be prohibited or otherwise restricted from acquiring assets or securities of another party or any of its Subsidiaries or any of their respective Affiliates Affiliates;
(including Parent and its Affiliates after the Effective Timexv) or (B) that restricts in any respect the operations or conduct of each Contract under which the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its SubsidiariesSubsidiary has expressly agreed to indemnify any Person against any claim of infringement, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiariesmisappropriation, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability violation of the Intellectual Property rights of a third person arising from the practice of Company or any of its Subsidiaries or such Affiliate to compete in any businessIntellectual Property, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers practice;
(xvi) each Contract that would prohibit or materially delay the consummation of the Transactions or otherwise materially impair the ability of the Company or to perform its Subsidiariesobligations hereunder; and
(xiiixvii) other Contracts any “material contract” (other than this Agreement, purchase orders as such term is defined in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (yItem 601(b)(10) of Regulation S-K under the lead-in language in Section 3.9(aSecurities Act)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True Each of the Material Contracts is valid, binding and correct in all full force and effect and is enforceable in accordance with its terms by the Company and the Company Subsidiary party thereto, subject to the Bankruptcy and Equity Exception. Neither the Company nor the Company Subsidiary is in material respects copies default under any Material Contract, nor, to the knowledge of each the Company, does any condition exist that, with notice or lapse of time or both, would constitute a material default thereunder by the Company and the Company Subsidiary party thereto. To the knowledge of the Company, no other party to any Material Contract have is in material default thereunder, nor does any condition exist that, with notice or lapse of time or both, would constitute a material default thereunder of such other party. Neither the Company nor the Company Subsidiary has received any written notice of termination or cancellation under any Material Contract or received any written notice of breach or default under any Material Contract, which breach or default has not been made available to Parent cured, except for such terminations, cancellations, breaches or publicly filed with the SEC prior to the date hereof. Except as defaults that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the . The Company nor any has made available to Parent or its Representatives accurate and complete copies of its Subsidiaries is (and, to the Knowledge all of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractContracts.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Salix Pharmaceuticals LTD)
Material Contracts. (a) Section 3.9(a) 4.16 of the Company Seller Disclosure Letter sets forth a true, correct and complete list of each of the following contracts and correct list other agreements (including any amendments thereto), other than any Affiliate Contract, in effect on the date of this Agreement to which any Subject Company is a party or which is primarily associated with the Retail Business and to which the Seller or any of its Affiliates (other than any Subject Company) is a party:
(i) any Contracts and other agreements that contain covenants prohibiting or limiting the right to compete of any Subject Company or prohibiting or restricting the ability of any Subject Company to deal with any Person or in any geographical area and that will be binding on the Subject Companies following the Closing;
(ii) any Contracts and other agreements relating to partnerships, limited liability company agreements, joint ventures or other similar arrangements;
(iii) any Contracts and other agreements that include any obligation to make payments, contingent or otherwise, arising out of the prior acquisition or disposition of a business;
(iv) any Contracts and other agreements for the acquisition, sale, lease or disposition of any site leases or equipment capital assets that require payment of or delivery of assets valued at $1,000,000 individually (or in the aggregate, in the case of any related series of contracts and other agreements);
(v) any Contracts that are collective bargaining agreements;
(vi) any Contracts that are settlement, conciliation or similar agreements with any Governmental Authority and pursuant to which outstanding obligations must be satisfied by any of the Subject Companies after the execution date of this Agreement, or any such agreements with one or more private parties pursuant to which the Subject Companies will be required after the execution date of this Agreement to pay consideration in excess of $175,000;
(vii) any (x) Contract with the Texas General Land Office (the “GLO”) for the sale of electric power, (y) any Contract for the sale of electric power to any commercial and industrial customer (other than any Contract with the GLO) which is within the top 75% (by forecasted volume March 1, 2009 forward) of Contracts with commercial and industrial customers (other than the GLO) as of three days prior to the date of this Agreement or (z) any master agreement for ERCOT supply (including natural gas, renewable energy credits and other commodity hedging); provided, however that identifying information with respect to certain commercial and industrial customers and certain counterparties subject to confidentiality restrictions has been redacted and is not provided in Section 4.16 of the Seller Disclosure Letter;
(viii) any Contracts under which a Subject Company has created, incurred, assumed or guaranteed any outstanding indebtedness for borrowed money, any capitalized lease obligation or any other indebtedness, or under which such Subject Company has imposed a security interest or Encumbrance (other than a Permitted Encumbrance) on any of its assets, tangible or intangible;
(ix) any outstanding agreements of guaranty or surety by a Subject Company, or by the Seller or any of the Seller’s Affiliates (other than a Subject Company) for the benefit of a Subject Company;
(x) any Contract with the Seller or any of the Seller’s Affiliates relating to the future provisions of goods or services related to the Retail Business and which requires any future payment in excess of $1,000,000 in the aggregate during any twelve (12) month period;
(xi) any employment Contract providing annual compensation in excess of $150,000;
(xii) any consulting Contract providing annual compensation in excess of $250,000;
(xiii) any Contract under which a Subject Company has advanced or loaned any amount to any of its directors, officers and employees outside the ordinary course of business; and
(xiv) any Contracts with any employee that require payment or increased obligations to such employee by or on behalf of the Subject Companies to any employees of the Subject Companies as a result of the transactions contemplated by this Agreement or which impose severance or termination payment obligations on any Subject Company, or, with respect to any Continuing Employee or, to the Knowledge of the Seller, any former employee of the Subject Companies whose employment was primarily sales related, which contain non-competition restrictions in favor of any Subject Company.
(b) Neither the Seller nor any Subject Company has received written notice of any material default on the part of any Subject Company under any contract or other agreement referred to in Section 4.16(a). No Subject Company is in breach or default under any such contract or other agreement, except for any such breach or default which would not reasonably be expected to result in a Subject Company liability that is material to the Subject Companies, taken as a whole. To the Knowledge of the Seller, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit no other party to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material such contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness agreement is in breach or agreement providing for Indebtedness default, in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)either case, in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractthereunder.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: LLC Membership Interest Purchase Agreement (NRG Energy, Inc.), LLC Membership Interest Purchase Agreement (Reliant Energy Inc)
Material Contracts. (a) Section 3.9(a) 4.16 of the Company Disclosure Letter Schedules sets forth a true, correct and complete and correct list list, as of the date of this Agreement, excluding of the following Contracts (but not including any Contract that (xLease Agreements) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its the Company Subsidiaries is party or by which any of the Company or any of their respective the Company Subsidiaries’ assets or properties are bound and under which the Company or assets is subject:
any Company Subsidiary has ongoing obligations or the ability to enforce rights thereunder (i) collectively, and together with any Contract (other than this Agreement) that is required to be filed by the Company a “material contract” (as a material contract pursuant to such term is defined in Item 601(b)(10) of Regulation S-K of the SEC Exchange Act, but excluding those material contracts described in clause (iii) thereof) and is not so filed;otherwise set forth on Section 4.16 of the Company Disclosure Schedules, the “Material Contracts”):
(iii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness any Contract in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale 50,000 per annum that requires any Person to purchase its total requirements of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment service from any other Person or contains “take or pay” or similar provisions but excluding subscription arrangements with suppliers that are entered into in the ordinary course of business consistent with past practice);
(ii) any Contract that contains a “most-favored-nation” clause;
(iii) any Contract that limits or purports to limit (or that following the consummation of the Offer or Merger, could materially limit) the ability of any the Company or any of the Company Subsidiaries or Parent or any of its Affiliates to (A) compete in any line of business, with any Person, in any geographic area or during any period of time, including by limiting the ability to sell any particular services or products to any Persons, or (B) solicit any customers or individuals for employment;
(iv) settlement agreement any Contract requiring or similar Contract with a Governmental Entity (A) involving otherwise relating to any future performance capital expenditures by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company Subsidiaries in excess of $50,000 individually or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after $250,000 in the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeaggregate;
(v) any Contract containing covenants binding upon relating to the Companycreation, incurrence, assumption or guarantee of any Indebtedness in excess of its Subsidiaries$100,000 individually, other than any Contract for intercompany indebtedness for borrowed money owing by the Company to any wholly-owned Company Subsidiary or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of wholly-owned Subsidiary to the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the another wholly-owned Company or any of its Subsidiaries upon notice of 60 days or lessSubsidiary;
(vi) any Contract that provides for indemnification or assumption of Liability without limit as to aggregate amount but excluding any Contract with respect indemnification provisions for the indemnification of customers or suppliers that are consistent in all material respects with any Top Contract that was Made Available to a joint venture or partnership formed under the laws of any applicable jurisdictionParent;
(vii) any Contract that would prevent relates to the acquisition or materially delay disposition of any business, a material amount of stock or assets of any Person or any real property (whether by merger, sale of stock, sale of assets or otherwise) but excluding any non-exclusive software licenses granted to customers, resellers and original equipment manufacturers in the Company from performing its obligations under this Agreement in any material respectordinary course of business;
(viii) any ContractContract that provides for the establishment or operation of any joint venture, excluding any purchase order partnership, joint development, strategic alliance or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementarrangement;
(ix) any Contract that contains any exclusivity rights to which a (A) Governmental Authority is a party, (B) Major Supplier is a party where the aggregate expenditures under all Contracts with such Major Supplier are in excess of $1,000,000 over the period between January 1, 2013 and October 31, 2014, (C) Major Customer is a party where the aggregate revenues under all Contracts with such Major Customer are in excess of $2,000,000 over the combined two-year period ended December 31, 2013, (D) Major Reseller is a party or (E) Major OEM is a party (each such Contract, a “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective TimeTop Contract”);
(x) any Government ContractContract involving any resolution or settlement of any actual or threatened Proceeding with a value in excess of $25,000 individually or that provides for any injunctive or other non-monetary relief;
(xi) any Related Party hedging, swap, derivative or similar Contract;
(xii) excluding Contracts set forth in Section 4.16(a)(x) of the Company Disclosure Schedules, any Company IP Agreements other than Contract under which (A) Shrinkthe Company or any of the Company Subsidiaries has licensed or provided any Company Owned IP to a third party, including agreements containing releases, immunities from suit, covenants not to ▇▇▇ or non-Wrap Licenses or assertion provisions (B) Contracts including except for non-exclusive licenses granted to Company’s customers in the ordinary course of business that are limited in all material respects to the respective customer’s use or other receipt of Company products or services and non-exclusive grants by licenses to contractors and consultants providing services to the Company of rights in, where the license grant is limited to enabling the respective contractor or under consultant to provide services to the Company) (“Company IP Licenses”) and/or (B) pursuant to which Intellectual Property are licensed or otherwise made available (including through agreements containing releases, immunities from suit, covenants not to ▇▇▇ or non-assertion provisions) to the Company or any of the Company Subsidiaries by any Person (except for Shrink Wrap Licenses);
(xiii) any labor, collective bargaining agreement or similar agreements;
(xiv) any insurance policies required to be set forth in Section 4.21 of the Company Disclosure Schedules;
(xv) any Contract with any director, officer or affiliate of the Company or any of the Company Subsidiaries; and
(xvi) any Contract (not listed in clauses (i) through (xv) above or in Section 4.24(b) of the Company Disclosure Schedules) pursuant to which the Company and/or any of the Company Subsidiaries may be entitled to receive or obligated to pay more than $200,000 in any calendar year but excluding (A) any customers, resellers, original equipment manufacturers, distributors or suppliers agreement entered into in the ordinary course of business consistent with past practice with customers of the Company and (B) any offer letter or its Subsidiaries; andemployment, severance or retention agreement.
(xiiib) other Contracts (other than this AgreementThe Company has Made Available to Parent true, purchase orders in the ordinary course correct and complete copies of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations each Material Contract (including “earnout” or other contingent payment obligations) that would reasonably be expected to result all modifications, amendments, supplements, annexes and schedules thereto and written waivers thereunder). Each Material Contract is in the receipt or making by full force and effect and is a valid and binding agreement enforceable against the Company or any of the Company Subsidiaries party thereto and, to the Company’s Knowledge, any other party thereto in accordance with its Subsidiaries terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of payments in the future in excess of $100,000 per annum or $500,000 during the life equity. As of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) date of the lead-in language in Section 3.9(a))this Agreement, whether or not set forth on Section 3.9(a) none of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its the Company Subsidiaries is (andparty to, nor, to the Knowledge Company’s Knowledge, any other party to any Material Contract is in material breach of or material default under, or has provided or received any written notice of any intention to terminate or seek renegotiation of, any Material Contract. To the Company’s Knowledge, no event or circumstance has occurred that, with or without notice or lapse of time or both, would (i) constitute a material breach of or material event of default by the Company, (ii) result in a right of termination for the counterparty, (iii) cause or permit the acceleration of, or other material changes to, any material right of the counterparty or obligation of the Company or (iv) result in the loss of any material benefit of the Company, no other party is) in default each case, under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Open Text Corp), Merger Agreement (Actuate Corp)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter Schedule 4.9 sets forth a complete and correct list as of the date following types of this AgreementContracts (collectively, excluding any Contract that (xthe “Material Contracts”) to which either of the Companies is a party or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under by which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectare bound:
(i) Contract (all Contracts that relate to the sale of any of such Company’s assets, other than this Agreement) that is required in the Ordinary Course of Business, or to be filed the acquisition by the such Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedcapital equipment or fixed assets;
(ii) indentureall Contracts that relate to such Company’s acquisition of any Person, credit agreementa material amount of stock or fifty percent (50%) or more of the assets of any other Person or any real property (whether by merger, loan agreementsale of stock, security agreement, guarantee, note, mortgage sale of assets or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000otherwise);
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product all Contracts that limit or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material purport to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts limit the ability of the such Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic areaarea or during any period of time;
(iv) all Contracts providing for indemnification by such Company, except for any such Contract that may be canceled without penalty by is (A) entered into in the Company Ordinary Course of Business or (B) entered into in connection with the purchase or sale of any of its Subsidiaries upon notice of 60 days entity or lessbusiness;
(v) all Contracts relating to any Indebtedness;
(vi) any Contract with respect all Contracts relating to a joint venture or partnership formed under the laws employment of any applicable jurisdictionCompany Employee or any other consulting, sales agency, sales representative or independent contractor agreement;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respectReal Property Leases;
(viii) any Contractall broker, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the partiesdistributor, that is (A) a Material Customer Agreementdealer, or (B) a Material Supplier Agreementmanufacturer’s representative, franchise, agency, marketing and advertising Contracts;
(ix) other than and excluding licenses for generally available commercial Software products supplied under end user licenses, any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are licenses, sublicenses and other material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates Contracts (including Parent any right to receive or its Affiliates after the Effective Time)obligation to pay royalties or any other consideration) relating to Intellectual Property;
(x) any Government Contractall collective bargaining Contracts;
(xi) any Related Party Contractall Contracts with a Top Customer or Top Supplier;
(xii) all customer or vendor purchase orders the performance of which are reasonably expected to involve consideration in excess of $50,000 after the Closing;
(xiii) all outstanding powers-of-attorney or similar powers granted by such Company for any Company IP Agreements other than purpose whatsoever;
(Axiv) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiariesall Affiliate Arrangements; and
(xiiixv) any other Contracts (other than this Agreement, purchase orders in the ordinary course performance of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would which is reasonably be expected to result in the receipt future payments to or making by the such Company or any of its Subsidiaries of payments in the future in excess of $100,000 50,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractannum.”
(b) True and correct in all material respects copies Except as set forth on Schedule 4.9(b), neither of each Company the Companies nor, to such Seller Party’s Knowledge, any other party, is in, or has received written notice of, any violation or breach of or default under (including any condition that with the passage of time or the giving of notice would cause such a violation or default under) any Material Contract. Each Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, is a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge valid and binding agreement of the applicable Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts and is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the against such Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to such Seller Party’s Knowledge, each other party thereto, in accordance with its terms, except as limited by the Knowledge of the CompanyEnforceability Exceptions. Neither Company nor, no to such Seller Party’s Knowledge, any other party has threatened repudiated any provision of any Material Contract to terminate, any which such Company is a party. A copy of each Material ContractContract has been made available to Buyer.
Appears in 2 contracts
Sources: Stock Purchase Agreement (PGT, Inc.), Stock Purchase Agreement (PGT, Inc.)
Material Contracts. (a) Section 3.9(aSet forth on Schedule 4.12(a) is a list of the Company Disclosure Letter sets forth a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following Contracts to which each Acquired Company is a party (the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) each Contract (other than this Agreement) that is required relating to be filed by the Company as a material contract pursuant to Item 601(b)(10) any partnership, joint venture, strategic alliance or sharing of Regulation S-K of the SEC but is not so filedprofits;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage each Contract limiting the right of the Acquired Company to (x) engage in or compete with any Person in any business or in any geographical area or (y) solicit or hire any Person or customers with respect to the business of the Acquired Company;
(iii) each collective bargaining Contract or other evidence Contract with any labor union;
(iv) each material license of Indebtedness Intellectual Property except for licenses implied by the sale of goods and licenses to software generally commercially available;
(v) each Contract relating to the incurrence, assumption or agreement guarantee of any material indebtedness or imposing a material Lien on any of the assets of any Acquired Company, other than TAT’s senior credit facility that imposes Liens on assets of the Acquired Companies that will be released at Closing;
(vi) each Contract providing for Indebtedness severance, retention, change in control or other similar payments or benefits to employees;
(vii) each Contract pertaining to employment arrangements with any officer, director, or key employee of any Acquired Company that provides for annual compensation in excess of $100,000;
(iiiviii) each material Contract (other than this Agreement) for the sale of between any of its assets after the date hereof (other than sales of inventoryAcquired Company and TAT, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries Seller, or any of their respective Affiliates Subsidiaries other than another Acquired Company;
(including Parent and its Affiliates after ix) each Contract relating to the Effective Time) acquisition (by merger, purchase of equity or (B) that restricts in any respect the operations assets or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Timeotherwise), in since January 1, 2011, by any such case, which Acquired Company of any operating business or assets or the capital stock of any other Person to the extent that the acquisition is material to the Company and its Subsidiaries, Acquired Companies taken as a whole;
(vx) any each Contract containing covenants binding upon relating to the Company, sale of any of its Subsidiariesthe assets, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any businesssince January 1, or with any Person or in any geographic area2009, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Acquired Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers or for the grant to any Person of any preferential rights to purchase or otherwise acquire any of the capital stock or assets of such Acquired Company;
(xi) each loan agreement, note, mortgage, indenture and security agreement relating to Acquired Company Debt and all guarantees of the debt obligations of any third party;
(xii) each Contract pursuant to which any Acquired Company leases or subleases any Real Property or material personal property;
(xiii) each Contract that is a material master services agreement or similar agreement entered into with any third party, other than Dalea Partners, LP and its SubsidiariesAffiliates;
(xiv) each letter of credit and each material performance bond or surety agreement;
(xv) each Contract involving a remaining commitment by any Acquired Company in excess of $100,000;
(xvi) any contracts or agreements to sell or otherwise dispose of any capital assets having a fair market value in excess of $100,000; and
(xiiixvii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent each material Contract with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material ContractGovernmental Authority.”
(b) True and correct in all material respects copies of each Each Acquired Company Material Contract have been has heretofore made available to Parent or publicly filed with the SEC prior to the date hereofBuyer copies of all Material Contracts. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Each Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts Contract is in full force and effecteffect in all material respects and constitutes a legal, valid and is the valid, binding and enforceable obligation of the Company and its Subsidiariesapplicable Acquired Company, and and, to the Knowledge of the Companysuch Sellers’ Knowledge, of the other parties thereto, subject only to the General Enforceability Exceptions. There is (i) no material breach or default by an Acquired Company or, to such Sellers’ Knowledge, by any third party under any Material Contract, and (iiiii) no event on the Company and its Subsidiaries have performed all obligations required part of the Acquired Company, or, to be performed by them to date Sellers’ Knowledge, on the part of any other third party under the Company any Material Contracts and are not (Contract, has occurred which, with notice or without the lapse of time or both, would constitute a material breach or default by the giving of notice, or both) in breach thereunder and (iv) neither the Acquired Company nor any of its Subsidiaries has received any notice of termination with respect to, andor, to the Knowledge of the CompanySellers’ Knowledge, no by any third party, would permit termination, modification or acceleration thereof by any party has threatened to terminate, any Company such Material Contract.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Transatlantic Petroleum Ltd.), Stock Purchase Agreement (Transatlantic Petroleum Ltd.)
Material Contracts. (a) Section 3.9(a3.7(a) of the Company Disclosure Letter Schedules sets forth a complete and correct list of the following Contracts to which a Group Company is, as of the date of this Agreement, excluding any a party (each Contract required to be set forth on Section 3.7(a) of the Company Disclosure Schedules, together with each of the Contracts entered into after the date of this Agreement that (xwould be required to be set forth on Section 3.7(a) is or relates to a of the Company Plan, (y) relates exclusively Disclosure Schedules if entered into prior to the BBGS Business or (z) is filed as an exhibit to any Company SEC Documentexecution and delivery of this Agreement, of each Contract described in this Section 3.9(a) under which collectively, the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) any Contract relating to Indebtedness of any Group Company or to the placing of a Lien (other than this Agreementany Permitted Lien) that is required to be filed by the Company as a on any material contract pursuant to Item 601(b)(10) assets or properties of Regulation S-K of the SEC but is not so filedany Group Company;
(ii) indentureany Contract under which any Group Company is lessee of or holds or operates, credit agreementin each case, loan agreementany tangible property (other than real property), security agreementowned by any other Person, guarantee, note, mortgage or other evidence of Indebtedness except for any lease or agreement providing for Indebtedness in excess of under which the aggregate annual rental payments do not exceed $100,0001,000,000;
(iii) any Contract under which any Group Company is lessor of or permits any third party to hold or operate, in each case, any tangible property (other than this Agreement) real property), owned or controlled by such Group Company, except for any lease or agreement under which the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)aggregate annual rental payments do not exceed $1,000,000;
(iv) settlement agreement any material joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research and development or other similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after any such Contract that governs the Effective Time) research, development, ownership, enforcement, use, or (B) that restricts in other exploitation of any respect the operations Intellectual Property Rights or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)other assets, in any such case, each case which is material to the Company and its Subsidiaries, taken as a wholeBusiness);
(v) any Contract containing covenants binding upon that (A) limits or purports to limit, in any material respect, the Company, freedom of any of its Subsidiaries, Group Company to engage or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic area, except for to operate any such Contract asset or assets or that may be canceled without penalty by would so limit or purport to limit, in any material respect, the Company operations of Holdco or any of its Subsidiaries upon notice Affiliates after the Closing, (B) contains any exclusivity, “most favored nation” or similar provisions, obligations or restrictions or (C) contains any other provisions restricting or purporting to restrict the ability of 60 days any Group Company to sell, manufacture, develop, commercialize, test or lessresearch the Company Products, directly or indirectly through third parties, or to solicit any potential employee or customer in any material respect or that would so limit or purports to limit, in any material respect, Holdco or any of its Affiliates after the Closing;
(vi) any Contract with respect to a joint venture requiring any future capital commitment or partnership formed under capital expenditure (or series of capital expenditures) by any Group Company in an amount in excess of (A) $1,000,000 annually or (B) $2,500,000 over the laws life of any applicable jurisdictionthe Contract;
(vii) any Contract that would prevent requiring any Group Company to guarantee the Liabilities of any Person (other than any other Group Company) or materially delay pursuant to which any Person (other than any other Group Company) has guaranteed the Company from performing its obligations under this Agreement Liabilities of a Group Company, in any material respecteach case in excess of $1,000,000;
(viii) any ContractContract under which any Group Company has, excluding directly or indirectly, made or agreed to make any purchase order or similar documentation that does not contain material terms of the relationship between the partiesloan, that is (A) a Material Customer Agreementadvance, or (B) assignment of payment to any Person or made any capital contribution to, or other investment in, any Person other than a Material Supplier AgreementGroup Company;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material required to be disclosed on Section 3.20 of the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)Disclosure Schedules;
(x) any Government ContractContract with any Person (A) pursuant to which any Group Company may be required to pay milestones, royalties or other contingent payments based on any research, testing, development, regulatory filings or approval, sale, distribution, commercial manufacture or other similar occurrences, developments, activities or events or (B) under which any Group Company grants to any Person any right of first refusal, right of first negotiation, option to purchase, option to license or any other similar rights with respect to any Company Product or any Intellectual Property Rights;
(xi) any Related Party ContractContract governing the terms of, or otherwise related to, the employment, engagement or services of any current director, manager, officer, employee, or Contingent Worker of a Group Company (A) whose annual base salary (or, in the case of a Contingent Worker, actual or anticipated annual base compensation) is in excess of $150,000 or (B) that provides for severance or any other post-termination payments or benefits;
(xii) any Contract governing the terms of, or otherwise related to, the employment, engagement or services of any former director, manager, officer, employee or Contingent Worker of a Group Company IP Agreements pursuant to which any Group Company, as of the Closing, has or will have an obligation to pay severance or other post-termination pay;
(xiii) any Contract providing for any Change of Control Payment of the type described in clause (a) of the definition thereof;
(xiv) any collective bargaining agreements and any other agreements executed with a union or similar organization;
(xv) any Contract for the disposition of any material portion of the assets or business of any Group Company or for the acquisition by any Group Company of any material assets or material business of any other Person (other than (A) Shrink-Wrap Licenses acquisitions or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into dispositions made in the ordinary course of business consistent business), or under which any Group Company has any continuing obligation with past practice respect to an “earn-out,” contingent purchase price or other contingent or deferred payment obligation;
(xvi) any settlement, conciliation or similar Contract (A) the performance of which would be reasonably likely to involve any payments in excess of $2,000,000 in the aggregate after the date of this Agreement, (B) with customers a Governmental Entity or (C) that imposes or is reasonably likely to impose, at any time in the future, any material, non-monetary obligations on any Group Company (or Holdco or any of its Affiliates after the Company or its SubsidiariesClosing); and
(xiiixvii) any other Contracts Contract the performance of which requires either (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the A) annual payments to or from any Group Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum 1,000,000 or (B) aggregate payments to or from any Group Company in excess of $500,000 during 2,500,000 over the life of the Contract. Each such Contract described and, in clauses each case, that is not terminable by the applicable Group Company without penalty upon less than ninety (90) days’ prior written notice.
(i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Each Material Contract have been made available to Parent or publicly filed with is valid and binding on the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a applicable Group Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge knowledge of the Company, no other party is) in default under any Company Material Contractthe counterparty thereto, (ii) each of the Company Material Contracts and is in full force and effecteffect and (ii) the applicable Group Company and, and is to the valid, binding and enforceable obligation knowledge of the Company, the counterparties thereto, are not in material breach of, or default under, any Material Contract. As of the date of this Agreement, no written notice of termination has been received by the Company and its Subsidiarieswith respect to any Material Contract, and to the Knowledge knowledge of the Company, none of the other parties thereto, subject to any Material Contract has indicated to a Group Company that it intends to terminate the General Enforceability Exceptions, (iii) the Company and Material Contract or to terminate or reduce its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (business dealings with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the a Group Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Business Combination Agreement (NewAmsterdam Pharma Co N.V.), Business Combination Agreement (Frazier Lifesciences Acquisition Corp)
Material Contracts. (a) All Contracts, including amendments thereto, required to be filed as an exhibit to any report of the Company filed pursuant to the Exchange Act of the type described in Item 601(b)(10) of Regulation S-K under the Exchange Act have been so filed, and, as of the date hereof, no such Contract has been amended or modified (or further amended or modified, as applicable) since the date so filed.
(b) Other than the Contracts described in clause (a) above which were filed in an unredacted form, Section 3.9(a2.10(b) of the Company Disclosure Letter sets forth a correct and complete list, and the Company has made available to Parent correct list as of the date of this Agreementand complete copies (including all material amendments, excluding any Contract that (x) is modifications, extensions or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Documentrenewals with respect thereto), of each Contract described in this Section 3.9(a) under which of the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following Contracts to which the Company or any of its the Company Subsidiaries is a party or any bound as of their respective properties or assets is subjectthe date hereof:
(i) each Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) containing any area of Regulation Smutual interest, joint bidding area, joint acquisition area, or non-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement compete or similar Contract with a Governmental Entity type of provision that (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Affiliates (including Parent and the Parent Subsidiaries or such Affiliate following the Closing) to (x) compete in any business, line of business or geographic area or with any Person during any period of time after the Initial Merger Effective Time or (y) make, sell or distribute any products or services, or use, transfer or distribute, or enforce any of their rights with respect to, any of their material assets or properties or (B) could require the disposition of any material assets or line of business of the Company or any of its Affiliates (including Parent and the Parent Subsidiaries following the Closing);
(ii) each Contract that creates, evidences, provides commitments in respect of, secures or guarantees (A) Indebtedness for borrowed money in any geographic areaamount in excess of $2,500,000 or (B) other Indebtedness of the Company or any of the Company Subsidiaries (whether incurred, except assumed, guaranteed or secured by any asset) in excess of $2,500,000, other than agreements solely between or among the Company and the Company Subsidiaries;
(iii) each Contract for lease of personal property or real property (excluding Oil and Gas Leases) involving annual payments in excess of $2,500,000 or aggregate payments in excess of $5,000,000 that are not terminable without penalty or other liability to the Company or any of the Company Subsidiaries (other than any ongoing obligation pursuant to such Contract that may be canceled without penalty is not caused by any such termination) within 60 days, other than Contracts related to drilling rigs;
(iv) each Contract involving the pending acquisition, swap, exchange, farmout, sale or other disposition of (or option to purchase, swap, exchange, sell or dispose of) any assets or properties that are material to the Company or the Company Subsidiaries or that involves aggregate consideration (including non-cash consideration or the payment of any completion or equipping costs as to any ▇▇▇▇▇ or any other capital expenses) having a fair value that exceeds $2,500,000, other than Contracts involving the acquisition or sale of (or option to purchase or sell) Hydrocarbons in the ordinary course of business consistent with past practice;
(v) each Contract for any Derivative Product;
(vi) each material partnership, stockholder, joint venture, limited liability company agreement or other joint ownership agreement, other than with respect to arrangements exclusively among the Company and/or its wholly-owned Subsidiaries and other than any customary joint operating agreements, unit agreements or participation agreements affecting the Oil and Gas Properties of the Company or any of the Company Subsidiaries;
(vii) each joint development agreement, exploration agreement, participation, farmout, farm-in, drillco, reversionary or program agreement or similar Contract (A) requiring the Company or any of the Company Subsidiaries to make annual expenditures in excess of $2,500,000 or aggregate payments in excess of $5,000,000 during the 12-month period following the date of this Agreement or (B) requiring any Person that is not a Company Subsidiary to pay, fund or bear any capital costs or other drilling, completion or equipping costs or expenses with respect to any Oil and Gas Properties held by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its Subsidiaries requiring annual expenditures in excess of $2,500,000 or aggregate payments in excess of $5,000,000 during the 12-month period following the date of this Agreement, in each case of the immediately foregoing subparts (A) and (B), other than customary joint operating agreements and continuous development obligations under this Agreement in any material respectOil and Gas Leases;
(viii) any Contract, excluding any purchase order or similar documentation Contract that does not contain material terms of the relationship between the parties, that is contains (A) a Material Customer Agreement, “take-or-pay” clause or any similar material prepayment or forward sale arrangement or obligation to deliver Hydrocarbons at some future time without then or thereafter receiving full payment therefor or (B) includes any dedications, commitments, covenants running with the land or other similar obligations that require the Company or any Company Subsidiaries (including, after Closing, Parent or any Parent Subsidiary) to sell, purchase, supply, deliver, gather, transport, process or handle any water (whether freshwater or produced water) Hydrocarbon, minerals, or other substances (1) produced from any Hydrocarbon ▇▇▇▇▇ and all water, carbon dioxide or injection ▇▇▇▇▇ included in the Oil and Gas Properties or (2) used in connection with the drilling or completion of any Hydrocarbon ▇▇▇▇▇, water, carbon dioxide or injection ▇▇▇▇▇, excluding, in each case, any such Contract (x) that would reasonably be expected to result in annual payments or expenditures less than $2,500,000 or aggregate payments or expenditures less than $5,000,000 after the date hereof, (y) where the lands included in the dedication or commitment area thereunder are less than 1280 gross acres or (z) that dedicate, commit or cover volumes less than 7,500 MMcf of gas or 1,500 gross barrels of oil equivalent of liquid Hydrocarbons on a Material Supplier Agreementmonthly basis (calculated on a yearly average basis);
(ix) any Contract each agreement that contains any exclusivity rights or exclusivity, “most favored nationsnation” provisions or minimum use most favored customer provision, call or supply requirements that are put option, preferential right or rights of first or last offer, negotiation or refusal, to which the Company or any of the Company Subsidiaries is subject, and, in each case, is material to the business of the Company and its Subsidiaries the Company Subsidiaries, taken as a whole, or that in each case other than those contained in (A) any agreement in which such provision is material to solely for the benefit of the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after any of the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or Subsidiaries, (B) Contracts including non-exclusive licenses customary royalty pricing provisions in Oil and Gas Leases or other non-exclusive grants by (C) customary preferential rights in joint operating agreements, unit agreements or participation agreements affecting the business or the Oil and Gas Properties of the Company or any of rights in, to or under the Company Intellectual Property Subsidiaries entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; andpractices;
(xiiix) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries acquisition or between any of the Company’s wholly owned Subsidiaries) divestiture Contract that contain obligations (including contains “earnoutearn out” or other contingent payment obligationsobligations or remaining indemnity or similar obligations (other than (A) asset retirement obligations or plugging and abandonment obligations set forth in the Company Gruy Reserve Report or (B) customary indemnity obligations with respect to the post-closing ownership and operation of acquired assets), that would reasonably be expected to result in (1) earn-out payments, contingent payments or other similar obligations to a third-party (but excluding indemnity payments) in any year in excess of $2,500,000 or (2) earn-out payments, contingent payments or other similar obligations to a third-party, including indemnity payments, in excess of $5,000,000 in the receipt aggregate;
(xi) any Contract (other than any Contract otherwise covered by this Section 2.10(b)) that creates future payment obligations (including settlement agreements or making Contracts that require any capital contributions to, or investments in, any Person) of the Company or any of the Company Subsidiaries, in each case, involving annual payments in excess of $5,000,000 or aggregate payments in excess of $10,000,000 (excluding, for the avoidance of doubt, customary joint operating agreements or unit agreements affecting the Oil and Gas Properties of the Company or any of the Company Subsidiaries), or creates or would create an Encumbrance on any material asset or property of the Company or any of the Company Subsidiaries (other than Permitted Encumbrances);
(xii) any Contract that (A) provides for the sale by the Company or any of its the Company Subsidiaries of payments Hydrocarbons (1) in excess of 2,500 gross barrels of oil equivalent of Hydrocarbons per day (calculated on a per day yearly average basis) or (2) for a term greater than 10 years and (B) has a remaining term of greater than 90 days and does not allow the future Company or the Company Subsidiaries to terminate it without penalty to the Company or the Company Subsidiaries within 90 days;
(xiii) any Labor Agreement;
(xiv) any Contract (other than Oil and Gas Leases and joint operating agreements) pursuant to which the Company or any of the Company Subsidiaries has paid amounts associated with any Production Burden in excess of $100,000 per annum 2,500,000 during the immediately preceding fiscal year or with respect to which the Company reasonably expects that it and the Company Subsidiaries will make payments associated with any Production Burden in any of the next three succeeding fiscal years that could, based on current projections, exceed $2,500,000 annually or $500,000 during 5,000,000 in the life aggregate;
(xv) any Contract pursuant to which the Company or any of the Contract. Each such Contract described in clauses Company Subsidiaries (iA) – (xiii) (acquires, uses or has the right to use any Intellectual Property owned by another Person that is not excluded pursuant material to clause its business (xexcept for licenses to generally commercially available software or technology licensed substantially on standard terms and conditions), (B) transfers, grants material licenses or rights to use, or acquires material Intellectual Property owned by the Company or any of the Company Subsidiaries (excluding standard employee invention and confidentiality agreements) or (yC) of is materially restricted from using, registering or asserting any Intellectual Property owned by the lead-in language in Section 3.9(a)), whether Company or not set forth on Section 3.9(a) any of the Company Disclosure LetterSubsidiaries that is material to its business;
(xvi) any Contract which is between the Company or any of the Company Subsidiaries, is on the one hand, and any of their respective officers, directors or principals (or any such Person’s Affiliates) or any Person that holds or owns five percent or more of the shares of the Company’s capital stock (or any affiliates of any such Person) on the other hand; or
(xvii) each Contract or Company Entities Organizational Document that would, on or after the Closing Date, prohibit or restrict the ability of Parent or any of its Subsidiaries (including the Company and its Subsidiaries) to declare and pay dividends or distributions with respect to their capital stock, pay any Indebtedness for borrowed money, obligations or liabilities from time to time owed to Parent or any of its Subsidiaries (including the Company and its Subsidiaries), make loans or advances or transfer any of its properties or assets.
(c) The Contracts described in the foregoing clauses (a) and (b), together with all exhibits and schedules to such Contracts, as amended through the date hereof or as hereafter amended in accordance with Section 4.1 hereof, are referred to herein as a “Company Material ContractContracts”.”
(bd) True and correct in all material respects copies of each Each Company Material Contract have been made available to Parent is valid and binding on the Company or publicly filed with the SEC prior Company Subsidiary party thereto, as the case may be, and, to the date hereof. Except Knowledge of the Company, each other party thereto, and is in full force and effect in accordance with its terms, except for (i) terminations or expirations at the end of the stated term or (ii) such failures to be valid and binding or to be in full force and effect as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, in each case subject to Enforceability Exceptions.
(ie) neither Neither the Company nor any of its the Company Subsidiaries is (in breach of, or default under the terms of, and, to the Knowledge of the Company, no other party isto any Company Material Contract is in breach of, or default under the terms of, any Company Material Contract, nor is any event of default (or similar term) in default continuing under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminatethere does not exist any event, condition or omission that would constitute such a default, breach or event of default (or similar term) (whether by lapse of time or notice or both) under any Company Material Contract, in each case where such breach, default or event of default (or similar term) would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Crescent Energy Co), Merger Agreement (Silverbow Resources, Inc.)
Material Contracts. (a) Subsections (i) through (viii) of Section 3.9(a) 3.16 of the Company Disclosure Letter sets forth Schedule contain a complete and correct list as of the date following types of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or contracts and agreements to which the Company or any of its Subsidiaries or any is a party (such contracts, agreements and arrangements as are required to be set forth in Section 3.16(a) of their respective properties or assets is subject:the Company Disclosure Schedule being the "Material Contracts"):
(i) Contract (other each contract and agreement which is likely to involve consideration of more than this Agreement) that is required to be filed by $25,000, in the Company as a material contract pursuant to Item 601(b)(10) aggregate, over the remaining term of Regulation S-K of the SEC but is not so filedsuch contract;
(ii) indentureall material broker, credit agreementdistributor, loan agreementdealer, security agreementfranchise, guaranteeagency, notesales promotion, mortgage market research, marketing, consulting, advertising, transfer, software, and research and development contracts or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by agreements to which the Company or any of its Subsidiaries is a party;
(iii) all clinical trial or any of their respective Affiliates (including Parent clinical research organization, manufacturing or supply, collaboration, and its Affiliates after the Effective Time) guarantee contracts or (B) that restricts in any respect the operations or conduct of agreements to which the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeparty;
(viv) all management contracts (excluding contracts for employment) and contracts with other consultants, including any Contract containing covenants binding contracts involving the payment of royalties or other amounts calculated based upon the Company, revenues or income of the Company or its Subsidiaries or income or revenues related to any product of the Company or its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of Subsidiaries to which the Company or any of its Subsidiaries or such Affiliate to compete is a party;
(v) all contracts and agreements evidencing indebtedness for borrowed money in any business, or excess of $10,000;
(vi) all material contracts and agreements with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by Governmental Authority to which the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to is a joint venture or partnership formed under the laws of any applicable jurisdictionparty;
(vii) any Contract all contracts and agreements that would prevent limit, or materially delay the Company from performing its obligations under this Agreement purport to limit, in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms respect the ability of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) compete in any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course line of business consistent or with past practice with customers any person or entity or in any geographic area or during any period of the Company or its Subsidiariestime; and
(xiiiviii) other Contracts (other than this Agreement, purchase orders all material contracts or arrangements that result in the ordinary course any person or entity holding a power of business consistent with past practice, agreements between attorney from the Company and any of its wholly owned Subsidiaries or between any or, to the knowledge of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or , any of its Subsidiaries of payments in that relates to the future in excess of $100,000 per annum Company, its Subsidiaries or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contracttheir respective businesses.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually prevent or in materially delay consummation of the aggregate, Merger and would not have a Company Material Adverse Effect, (i) neither each Material Contract is a legal, valid and binding agreement, the Company nor is not in material default under any Material Contract and none of its Subsidiaries is the Material Contracts has been canceled by the other party; (and, ii) to the Knowledge of the Company's knowledge, no other party is) is in breach or violation of, or default under under, any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, ; (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse in receipt of time or the giving any claim of notice, or both) in breach thereunder default under any such agreement; and (iv) neither the Company execution of this Agreement nor the consummation of the Merger shall constitute a default, give rise to cancellation rights, or otherwise adversely affect any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, 's rights under any Company Material Contract. The Company has furnished or made available to Parent true and complete copies of all Material Contracts, including any amendments thereto.
Appears in 2 contracts
Sources: Merger Agreement (Osi Pharmaceuticals Inc), Merger Agreement (Cell Pathways Inc /De)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter Schedule 5.15 sets forth a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described (and in this Section 3.9(athe case of an oral Contract, the material terms of such Contract) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries is a party to or to which any of the assets the Company or any of their respective properties or assets is subject:
its Subsidiaries are bound: (i) Contract governing the borrowing of money or the Guarantee or the repayment thereof or granting of Liens (other than this AgreementPermitted Liens) that is required to be filed by on any material property or asset of the Company as a material contract pursuant to Item 601(b)(10) or any of Regulation S-K of the SEC but is not so filed;
(ii) indentureits Subsidiaries, credit agreementin each case, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
; (ii) providing for the employment of any Person with annual compensation in excess of $100,000, except for any Contract for “at-will” employment which may be terminated on 60 days or less prior notice without liability to the Company or its Subsidiaries; (iii) Contract containing covenants expressly limiting the freedom 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 market; (iv) providing a license to the Company or its Subsidiaries to use any third party Intellectual Property (other than this Agreementlicenses for commercially available off-the-shelf Software) or providing to a third party a license to use any Intellectual Property; (v) with any directors, managers, officers, members or stockholders of the Company or its Subsidiaries; (vi) providing for the sale future or ongoing purchase, maintenance or acquisition, or the sale, lease or furnishing, of any materials, supplies, merchandise, property or equipment (including computer hardware or software or other property or services), in each case in excess of its assets after the date hereof (other than sales of inventory, product $100,000 annually or obsolete equipment $200,000 in the ordinary course aggregate; (vii) granting to any Person a first-refusal, first-offer or similar preferential right to purchase or acquire any material right, asset or property of business consistent with past practice);
the Company or its Subsidiaries; (ivviii) settlement providing for any offset, countertrade or barter arrangement in excess of $100,000 annually or $200,000 in the aggregate; (ix) containing a “most favored nation” pricing agreement or similar Contract consignment arrangement with a Governmental Entity customer or supplier; (Ax) involving future performance a material distributor, sales representative, broker or advertising arrangement that by its express terms is not terminable by the Company or its Subsidiaries at will or by giving notice of 30 days or less, without liability; (xi) involving a joint venture or partnership or involving the sharing of profits, losses, costs or liability by the Company or any of its Subsidiaries with any other Person; (xii) involving management services, consulting services, independent contractor services, support services or any other similar services, in each case, in excess of their respective Affiliates $100,000 annually or $200,000 in the aggregate; (including Parent and its Affiliates after xiii) involving the Effective Timeacquisition of any business enterprise whether via stock or asset purchase or otherwise (but excluding the acquisition of inventory in the Ordinary Course of Business); (xiv) granting a power of attorney to any Person; (xv) with respect to a franchise agreement or arrangement; or (Bxvi) that restricts in any respect under which the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty amount payable by the Company or any of its Subsidiaries upon notice is based on a royalty or earn-out in excess of 60 days $100,000 annually or less;$200,000 in the aggregate (the Contracts described in clauses (i)-(xvi) are each, a “Company Material Contract” and collectively, the “Company Material Contracts”).
(vib) any Contract with respect to a joint venture or partnership formed under To the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any Knowledge of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected , the Company has made available to result in the receipt or making by Buyer true and complete copies of each written Company Material Contract, as amended. Each Company Material Contract is a valid, binding and enforceable obligation of the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a))Subsidiaries, whether or not set forth on Section 3.9(a) of the Company Disclosure Letteras applicable, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no the other party is) parties thereto, enforceable in default under any Company Material Contractaccordance with its terms, (ii) each of subject to the General Enforceability Exceptions. With respect to the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of listed on Schedule 5.15 (or required to be listed on Schedule 5.15): (i) neither the Company and or any of its SubsidiariesSubsidiaries nor, and to the Knowledge of the Company, any other party thereto, is in material default under or in material violation of any such Company Material Contract; (ii) to the Knowledge of the other parties theretoCompany, subject to the General Enforceability Exceptionsno event has occurred that, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with notice or without the lapse of time or the giving of noticeboth, would constitute such a material default or both) in breach thereunder and material violation; (iviii) neither the Company nor any of its Subsidiaries has received released any notice of termination with respect to, and, its material rights under any such Company Material Contract; and (iv) to the Knowledge of the Company, no party to any such Company Material Contract has repudiated any of the material terms thereof or threatened in writing to terminate, terminate or cancel any such Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Reliant Software, Inc.), Merger Agreement (Community Choice Financial Inc.)
Material Contracts. (a) Section 3.9(a4.13(a) of the Company Disclosure Letter Schedules sets forth a correct and complete and correct list list, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC DocumentExecution Date, of each Contract described in this Section 3.9(a) under the following Contracts to which the an Acquired Company is party or by which any of its Subsidiaries has any current the Acquired Companies’ assets or future rightsproperties are bound (collectively, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) Contract (other than this Agreement) that is constitutes, or would be required to be filed by the Company GXS Worldwide as, a “material contract” (as a material contract pursuant to Item such term is defined in item 601(b)(10) of Regulation S-K of the SEC but is not so filedSEC);
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage any Contract pursuant to which the Acquired Companies may be entitled to receive or other evidence of Indebtedness or agreement providing for Indebtedness obligated to pay more than $2,000,000 in excess of $100,000any calendar year;
(iii) any Contract that limits or purports to limit (other than this Agreementor that following the Closing could limit) for the sale ability of any Acquired Company, Parent, Merger Sub, Surviving Corporation or any of its assets after the date hereof Parent, Merger Sub or Surviving Corporation’s Affiliates to (other than sales A) compete in any line of inventorybusiness, product with any Person, in any geographic area or obsolete equipment in the ordinary course during any period of business consistent with past practice)time; or (B) any Contract that grants any exclusive rights, rights of first refusal, rights of first negotiation or similar rights to any Person;
(iv) settlement agreement any Contract containing “most-favored-nation” terms whereby an Acquired Company would be required to provide preferential pricing or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any treatment to such case, which is material to the Company and its Subsidiaries, taken as a wholethird party;
(v) any Contract containing covenants binding upon the Company, relating to any future capital expenditures by an Acquired Company in excess of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less$1,000,000;
(vi) any Contract with respect relating to a joint venture the creation, incurrence, assumption or partnership formed under the laws guarantee of any applicable jurisdictionIndebtedness;
(vii) any Contract that would prevent relates to the acquisition or materially delay disposition of any business, a material amount of stock or assets of any Person or any property (whether by merger, sale of stock, sale of assets, license or otherwise), including any real property that was consummated within two (2) years prior to the Company from performing its obligations under date of this Agreement in any material respectAgreement;
(viii) any Contract, excluding any purchase order or similar documentation Contract that does not contain material terms of the relationship between the parties, that is provides for (A) a Material Customer Agreement, the establishment or operation of any joint venture or (B) a Material Supplier Agreementthe development of any Intellectual Property Rights that are material to the Business which requires payment by an Acquired Company of more than $750,000;
(ix) any Contract that contains involving any exclusivity rights resolution or “most favored nations” provisions settlement of any actual or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as threatened Legal Proceeding with a whole, value in excess of $500,000 or that is material to the Company provides for any injunctive or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)other non-monetary relief;
(x) any Government hedging, swap, derivative or similar Contract;
(xi) any Related Party ContractLeases;
(xii) any Contract under which any Acquired Company IP Agreements other has received or granted any right to use or exploit any Intellectual Property Rights that are material to the Business, whether by way of a license, covenant not to ▇▇▇ or otherwise with a license fee of more than $1,000,000 annually (Aexcluding (x) Shrinkany off-Wrap Licenses the-shelf shrinkwrap, clickwrap or similar commercially available non-custom software licensed to an Acquired Company and (By) Contracts including non-exclusive licenses or other non-exclusive grants granted by the an Acquired Company of rights in, to or under Company Intellectual Property entered into its customers in the ordinary course of business consistent with past practice with customers for the use of the Company Acquired Company’s services);
(xiii) any Contract that involves the colocation or its Subsidiariesoutsourcing of any material operations or infrastructure of any Acquired Company;
(xiv) any labor or collective bargaining agreements, excluding statutory workers council, industry contracts or similar requirements in each case as required by Laws outside of the United States;
(xv) any Contract with a Major Customer or Major Supplier; and
(xiiixvi) other Contracts (other than this Agreementany Contract between or among an Acquired Company, purchase orders in on the ordinary course of business consistent with past practiceone hand, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) Affiliate of the Company Disclosure Letter(other than an Acquired Company), is referred to herein as a “Company Material Contracton the other hand.”
(b) True and correct in all material respects copies of each The Company Material Contract have been has made available to Parent or publicly filed with and Merger Sub correct copies of each Material Contract as of the SEC prior Execution Date (including all material amendments to the date hereofterms and conditions thereof, but not including supplements, annexes, work orders, change requests and schedules thereto). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Each Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts Contract is in full force and effect, effect and is the valid, binding and enforceable obligation of the against an Acquired Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge Company’s Knowledge, any other party thereto, except as may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws relating to creditors’ rights generally and the availability of equitable remedies. No Acquired Company nor, to the Company, no party has threatened to terminate’s Knowledge, any Company other party to any Material Contract is in material breach of or default under, or to the Company’s Knowledge has provided or received any written notice of any intention to terminate any Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (GXS Worldwide, Inc.), Merger Agreement (Open Text Corp)
Material Contracts. (a) Except for this Agreement, for Contracts filed as exhibits to the Company Reports or as disclosed in Section 3.9(a3.15(a) of the Company Disclosure Letter sets forth a complete and correct list Schedule, as of the date of this Agreement, excluding any Contract that Agreement (xi) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which neither the Company or nor any of its Subsidiaries has any current or future rightsis a party to, obligations or liabilities or to which and (ii) none of the Company or Company, any of its Subsidiaries Subsidiaries, or any of their respective properties properties, assets or assets rights is subjectbound by:
(i) any Contract (other than this Agreement) that is or would be required to be filed by the Company as a “material contract contract” with the SEC pursuant to Item 601(b)(10) of Regulation S-K of or disclosed by the SEC but is not so filedCompany on Form 8-K;
(ii) indenture, credit any limited liability company agreement, loan agreement, security agreement, guarantee, note, mortgage joint venture or other evidence similar agreement or arrangement relating to the formation, creation, operation, management or control of Indebtedness any partnership or agreement providing for Indebtedness in excess joint venture (excluding any Teaming Agreement) that is material to the business of $100,000the Company and its Subsidiaries, taken as a whole, other than any such limited liability company, partnership or joint venture that is a Subsidiary of the Company;
(iii) any Contract (other than this Agreementamong consolidated Subsidiaries of the Company or capital or operating leases) relating to (x) indebtedness for the sale of borrowed money or (y) any of its assets after the date hereof (other than sales of inventoryinterest rate, product currency or obsolete equipment in the ordinary course of business consistent with past practice)commodity derivatives or hedging transactions;
(iv) settlement agreement or similar any Contract with a Governmental Entity (A) involving future performance by the Company or other than any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (BTeaming Agreement) that restricts in any respect purports to limit the operations or conduct right of the Company or any of its Subsidiaries to engage or compete in any line of their respective Affiliates (including Parent and its Affiliates after the Effective Time)business or to compete with any Person or operate in any location, in each case in any such case, which is respect material to the business of the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon entered into since the CompanyApplicable Date relating to an acquisition, any of its Subsidiariesdivestiture, merger or any of their respective Affiliates similar transaction that contains representations, covenants, indemnities or other obligations (including Parent and its Affiliates after the Effective Timepayment, indemnification, purchase price adjustment, “earn-out” or other contingent obligations) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate that are still in effect and would reasonably be expected to compete result in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty payments by the Company or any of its Subsidiaries upon notice in excess of 60 days or less$250,000;
(vi) any Contract with respect that obligates the Company to a make any capital commitment or expenditure (including pursuant to any joint venture or partnership formed under the laws venture) in excess of any applicable jurisdiction$1,000,000;
(vii) any individual Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms with an employee of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries that provides for compensation in any fiscal year that is equal to or greater than $400,000 (excluding any compensation related to expatriate costs and expenses, such as expatriate allowance, expatriate bonus, assignment completion bonus, post differential/hardship pay, post or cost of payments living allowance, education allowance, housing or living quarters allowance, relocation expenses, repatriation allowance, automobile allowance, language courses and orientation, travel costs, cost for tax assistance and preparation, and temporary housing costs), other than any offer letter or similar employment arrangement that can be terminated without express liability post-termination other than severance paid in the future in excess ordinary course of $100,000 per annum or $500,000 during business; and
(viii) any Contract that prohibits the life pledging of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) capital stock of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies or any Subsidiary of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor or prohibits the issuance of guarantees by any of its Subsidiaries is (and, to the Knowledge Subsidiary of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Providence Equity Partners VI L P), Merger Agreement (Sra International Inc)
Material Contracts. (a) Section 3.9(a3.09(a) of the Company Disclosure Letter sets forth a complete and correct list as Schedules lists each of the date following Contracts of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company (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 3.10(b) of its Subsidiaries has any current or future rightsthe Disclosure Schedules and all Company IP Agreements set forth in Section 3.12(b) of the Disclosure Schedules, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:being “Material Contracts”):
(i) each Contract (other than this Agreement) that is required to of the Company involving aggregate consideration in excess of $100,000 and which, in each case, cannot be filed cancelled by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedwithout penalty or without more than 90 days’ notice;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000all Contracts with the Material Customers;
(iii) Contract (other than this Agreement) for all Contracts that require the sale Company to purchase its total requirements of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)service from a third party or that contain “take or pay” provisions;
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance all Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax, environmental or other Liability of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholePerson;
(v) all Contracts that relate to the acquisition or disposition of any Contract containing covenants binding upon 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);
(vi) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts to which the Company is a party;
(vii) all employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which the Company is a party and which are not cancellable without material penalty or without more than 90 days’ notice;
(viii) except for Contracts relating to trade payables, all Contracts relating to Indebtedness (including, without limitation, guarantees) of the Company, ;
(ix) all Contracts with any of its Subsidiaries, Governmental Authority to which the Company is a party (“Government Contracts”);
(x) all Contracts that limit or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts purport to limit the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic area, except for area or during any such Contract that may be canceled without penalty by the Company or any period of its Subsidiaries upon notice of 60 days or lesstime;
(vixi) any Contract with respect Contracts to which the Company is a party that provide for any joint venture venture, partnership or partnership formed under similar arrangement by the laws of any applicable jurisdictionCompany;
(viixii) any Contract that would prevent all Contracts between or materially delay among the Company from performing its obligations under this Agreement in on the one hand and a Seller or any material respectAffiliate of a Seller (other than the Company) on the other hand;
(viiixiii) all collective bargaining agreements or Contracts with any Contract, excluding any purchase order or similar documentation that does not contain material terms of Union to which the relationship between the parties, that Company is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementparty;
(ixxiv) all Contracts with any Person that are subcontractors under a Government Contract; and
(xv) any other Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded previously disclosed pursuant to clause (x) or (y) of the lead-in language in this Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract3.09.”
(b) True Each Material Contract is in full force and effect and is a valid and binding agreement enforceable against the Company and the other party or parties thereto, in accordance with its terms. None of the Company or, to the Company’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) or has provided or received any notice of any intention to terminate, any Material Contract. 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 acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Complete and correct in all material respects copies of each Company Material Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractBuyer.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Datavault AI Inc.), Stock Purchase Agreement (Datavault AI Inc.)
Material Contracts. (a) Section 3.9(aExcept for the Contracts set forth on Schedule 3.6(a) of (such Contracts, collectively, the Company Disclosure Letter sets forth a complete and correct list “Material Contracts”), as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company is not a party to or bound by any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectfollowing Contracts:
(i) Contract Contracts (other than this Agreementpurchase orders and statements of work issued under existing master or similar Contracts) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedwith any Material Customer or Material Supplier;
(ii) indentureMaterial Real Property Leases;
(iii) Contracts pursuant to which the Company is a lessee of any tangible personal property, credit agreementor holds or operates any tangible personal property owned or controlled by another Person, loan agreementother than any such Contract under which the aggregate annual payments do not exceed $100,000;
(iv) Contracts under which the Company is lessor of or permits any third party to hold or operate any tangible property (other than real property), security agreementowned or controlled by the Company, guaranteeexcept for any such Contract under which the aggregate annual rental payments do not exceed $100,000;
(v) (A) joint development Contracts, note(B) joint venture Contracts or (C) strategic alliance or similar Contracts;
(vi) Contracts prohibiting in any material respect the Company from freely engaging in any line of business anywhere in the world or competing with any Person or otherwise including provisions on joint price-fixing, mortgage market or customer sharing, exclusivity or market classification;
(vii) Contracts containing material confidentiality provisions (other evidence than ordinary course non-disclosure agreements, customer or supplier agreements, employee or contractor agreements or such other Contracts entered into in the ordinary course of Indebtedness business where confidentiality undertakings are incidental to the primary purpose);
(viii) Contracts (excluding Employee Benefit Plans) that require the payment by or agreement providing to the Company after the date hereof of an amount in excess of $100,000 per annum;
(ix) Contracts relating to Indebtedness;
(x) Contracts that relate to any disposition or acquisition by the Company of any operating business or the capital stock or equity interests of any other Person during the past two (2) years, in each case for Indebtedness consideration in excess of $100,000;
(iiixi) Contract (other than this Agreement) for the sale Contracts to directly or indirectly guarantee of any liability or obligation of its assets after another Person;
(xii) Contracts that represents the date hereof settlement or compromise of any actual or threatened Proceeding against or by the Company;
(xiii) Contracts for capital expenditures in excess of $100,000;
(xiv) Contracts in which the Company makes, directly or indirectly, any material advance, loan, extension of credit or capital contribution to, or other than sales investment in, any Person, in excess of inventory$100,000;
(xv) Contracts pursuant to which (i) the Company licenses Intellectual Property to any Person, product or obsolete equipment other non-exclusive licenses entered in the ordinary course of business consistent or (ii) the Company licenses Intellectual Property from any Person, other than agreements for shrink-wrap, click-wrap or off-the-shelf software, or other software commercially available on reasonable terms to the public generally, in each case with past practice)one-time or annual license, maintenance, support and other fees of $100,000 or less.
(xvi) Contracts with a Governmental Entity;
(ivxvii) settlement agreement Contracts involving a sharing of profits, losses, costs or expenses or containing a put, call or similar Contract with a Governmental Entity right;
(xviii) Contracts (A) involving for the future performance by sale of any asset of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts grants a right or option to purchase in the future any respect the operations or conduct asset of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete other than in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) each case any Contract with respect to a joint venture or partnership formed under the laws remaining value of any applicable jurisdiction;less than $100,000; or
(viixix) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material commit to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between do any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractforegoing.”
(b) True and correct in all material respects copies of Except as set forth on Schedule 3.6(b), each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither is legal, valid and binding on the Company nor any of and enforceable in accordance with its Subsidiaries is (terms against the Company and, to the Knowledge knowledge of the Company, no each other party is) in default under any Company Material Contract, thereto (subject to the Enforceability Exception); and (ii) each to the knowledge of the Company Material Contracts is in full force and effectCompany, and is the will be legal, valid, binding and enforceable obligation on identical terms immediately following the consummation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, transactions contemplated by this Agreement (subject to the General Enforceability ExceptionsException).
(c) Except as set forth on Schedule 3.6(c), (iii) the Company and its Subsidiaries have has performed in all material respects all obligations required to be performed by them to date it under the Company Material Contracts and are is not (with in material default under or without the lapse in material breach of, nor in receipt of time any written claim of default or the giving of noticebreach under, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect toMaterial Contract to which it is a party, and, to the Knowledge knowledge of the Company, no event has occurred or circumstance exists which, with the delivery of notice, the passage of time or both, would constitute such a material default, breach or event of noncompliance by the Company under any Material Contract. To the knowledge of the Company, as of the date hereof, the other party to each Material Contract has threatened performed in all material respects all obligations required to be performed by it under such agreement.
(d) The Company has not received any written notice from any counterparty to any Material Contract of such party’s intention to terminate, not renew, cancel or materially decrease its business with the Company outside of the ordinary course of business or any Company claims for damages or indemnification thereunder.
(e) Correct and complete copies of each Material ContractContract (including any amendments, waivers or other modifications thereto through the date of this Agreement) have been made available to Purchaser.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Better Choice Co Inc.), Stock Purchase Agreement (Better Choice Co Inc.)
Material Contracts. (a) Section 3.9(a2.19(a) of the Company Disclosure Letter sets forth a complete and correct list Schedule identifies, as of the date of this Agreement, each of the following Contracts of an Acquired Company (excluding any Company Plans, Foreign Company Plans, Company Real Property Leases, the Rhino Merger Agreement and any purchase or sales order issued in the ordinary course of business) (each, a “Material Contract”):
(i) any joint venture, partnership or limited liability company agreement which is material to the Company and its Subsidiaries (taken as a whole) relating to the formation, creation, operation, management or control of any such material joint venture, partnership or limited liability company;
(ii) any Contract creating, guaranteeing or incurring indebtedness for borrowed money in excess of $5,000,000;
(iii) any Contract with a supplier or vendor of the Company or any of its Subsidiaries that resulted in aggregate payments by the Company and its Subsidiaries to such supplier or vendor in excess of $8,000,000 for the fiscal year ended December 31, 2025;
(iv) any Contract for the acquisition or disposition (by merger, consolidation, purchase or sale of stock or of assets or otherwise) of any Entity, business or assets that constitute a business or division of any Person, or all or substantially all of the assets of any Person (A) after the date hereof and with a fair market value or a purchase price (including assumption of debt) in excess of $8,000,000 and under which, after the Closing, the Company or any of its Subsidiaries will have any material financial obligations or (B) under which, after the Closing, the Company or any of its Subsidiaries will have any material continuing indemnification obligations or “earn-out” or similar contingent payment obligations;
(v) except with respect to franchising arrangements as described in Section 4.2(b)(v) of the Company Disclosure Schedule, any Contract that (xA) contains any covenant that expressly limits, curtails or restricts the ability of the Company or any of its Subsidiaries to engage in any line of business, compete with any Person or conduct activities in any geographic area, in each case that would reasonably be expected to be material to the operations of the Company and its Subsidiaries (taken as a whole) or (B) grants to any third party a right of first refusal, first offer or first negotiation or a call or put right with respect to any asset that is material to the Company and its Subsidiaries (taken as a whole);
(vi) any Contract that is between the Company or relates to a any of its Subsidiaries, on the one hand, and any director, officer or stockholder holding five percent (5%) or more of the voting power of the Company PlanCommon Stock, on the other hand, other than (A) any employment agreements, (yB) relates exclusively relating to the BBGS Business transactions conducted on an arm’s-length basis or (zC) is filed as an exhibit to any Company SEC Document, agreements with consideration of each less than $5,000,000;
(vii) any Contract described in this Section 3.9(a(A) under which the Company or any of its Subsidiaries grants or is granted (x) a covenant not to use or assert any Intellectual Property or (y) a license on an exclusive basis to any Intellectual Property or (B) material to the conduct of the business of the Company and its Subsidiaries (taken as a whole) under which the Company or any of its Subsidiaries grants a license to a third party with respect to Company Owned IP, or acquires, is granted a license to or otherwise permitted to use Intellectual Property of a third party, other than, in the case of Subsection (B), (1) Contracts involving the licensing of Intellectual Property where such licensed Intellectual Property is merely incidental to the transaction contemplated in such Contract, the commercial purpose of which is something other than such license of Intellectual Property, (2) Contracts relating to the non-exclusive license, support or service of the Company’s products and services in the ordinary course of business on the Company’s standard form, (3) Contracts for (x) the license of generally commercially available, non-customized technology pursuant to a non-exclusive license, with annual fees of less than $5,000,000, or (y) Open Source Software, (4) non-disclosure agreements entered into in the ordinary course of business, or (5) employee invention assignment agreements entered into in the ordinary course of business on the Company’s standard form;
(viii) any tax receivable agreements;
(ix) master franchise agreements for the United States independent regions, Quebec and Europe (collectively, the “Master Franchise Agreements”);
(x) each agreement under which the Company or any of its Subsidiaries has advanced or loaned any current amount of money to any of its officers, directors, or future rightsemployees;
(xi) each agreement that contains any “most favored nation” or most favored customer provision, obligations call or liabilities put option, preferential right or rights of first or last offer, negotiation or refusal to which the Company or any of its Subsidiaries or any of their respective properties Affiliates is subject and that is material to the business of the Company and its Subsidiaries, taken as a whole, except for any agreement in which such provision is solely for the benefit of the Company or assets is subject:any of its Subsidiaries; and
(ixii) any Contract (not otherwise described in any other than Subsection of this AgreementSection 2.19(a) that would constitute a “material contract” (as such term is required to be filed by the Company as a material contract pursuant to defined in Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(iiSecurities Act) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;Company.
(viib) any Each Material Contract that would prevent or materially delay the Company from performing is valid and in full force and effect, and is enforceable in accordance with its obligations under this Agreement in any material respect;
(viii) any Contractterms, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material subject to the Company Enforceability Limitations and its Subsidiaries taken except as a wholewould not, individually or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreementaggregate, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in have a Material Adverse Effect on the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life Company. None of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant Acquired Companies, and, to clause (x) or (y) the Knowledge of the lead-in language in Section 3.9(a))Company, whether no other Person, has violated or not set forth on Section 3.9(a) of the Company Disclosure Letterbreached, is referred to herein as a “Company or committed any default under, any Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except , except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of Effect on the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Arrangement Agreement and Plan of Merger (Rome Wildlife, Inc.), Arrangement Agreement and Plan of Merger (RE/MAX Holdings, Inc.)
Material Contracts. (a) Section 3.9(aExcept as set forth on Schedule 5.18(a) of the Company Disclosure Letter sets forth Schedule, neither the Company nor any of its Subsidiaries is a complete and correct list as party to nor are their assets or properties bound by any Contract of the date following nature (such Contracts as are set forth or required to be set forth on Schedule 5.18(a) of this Agreement, excluding the Company Disclosure Schedule being “Company Material Contracts”):
(i) any Contract that (x) is or relates pursuant to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has provided funds to or made any current loan, capital contribution or future rightsother investment in, obligations or liabilities assumed any liability or obligation of, any Person, including take-or-pay Contracts or keepwell agreements, or any Contract relating to which or evidencing indebtedness of the Company or any of its Subsidiaries, including mortgages, other grants of security interests, guarantees or notes, except for office equipment leases entered into in the ordinary course of business;
(ii) any Contract for the purchase of any debt or equity security or other ownership interest of any Person, or for the issuance of any debt or equity security or other ownership interest, or the conversion of any obligation, instrument or security into debt or equity securities or other ownership interests of, the Company or any of its Subsidiaries;
(iii) any lease, sublease or similar Contract under which (A) the Company or any of its Subsidiaries is a lessor or sublessor of real property owned by any other Person, or makes available for use by any Person, any portion of any premises otherwise occupied, leased or subleased by it, or (B) the Company or any of its Subsidiaries is a lessee or sublessee of, or holds or uses any real property owned by any other Person;
(iv) any lease, sublease or similar Contract under which (A) the Company or any of its Subsidiaries is a lessee or sublessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by any Person, or (B) the Company or any of its Subsidiaries is a lessor or sublessor of, or makes available for use by any Person, any tangible personal property owned or leased by it;
(v) any Contract with any customer, distributor or supplier;
(vi) any Contract with any Governmental Authority;
(vii) any Tax sharing or Tax allocation Contract;
(viii) any Contract with any Related Party of the Company or any of its Subsidiaries;
(ix) any employment or consulting Contract;
(x) any Contract that limits, or purports to limit, the 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 that restricts the right of the Company and its Subsidiaries to sell to or purchase from any Person or to hire any Person, or that grants the other party or any third person exclusive rights (including any exclusive license or right to use any Intellectual Property) or “most favored nation” status or any type of special discount rights;
(xi) any Contract providing for indemnification to or from any Person, except for such indemnification provisions granted to distributors, representatives, consultants or customers of the Company and its Subsidiaries pursuant to the Company’s or its Subsidiaries’ standard Contracts with such parties;
(xii) any royalty Contract and any Contract relating in whole or in part to any Intellectual Property;
(xiii) any joint venture or partnership, merger, asset or stock purchase or divestiture Contract (other than Contracts for the purchase or sale of assets in the ordinary course of business);
(xiv) any Contract relating to settlement of any administrative, judicial or arbitration proceedings within the past five years;
(xv) any Contract that results in any Person holding a power of attorney from the Company or any of its Subsidiaries that relates to the Company, any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedbusinesses;
(iixvi) indentureany Contract, credit agreement, loan agreement, security agreement, guarantee, note, mortgage whether or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment not made in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity that (A) involving involves a future performance or potential liability or receivable, as the case may be, in excess of $100,000 on an annual basis or in excess of $250,000 over the current Contract term, or (B) has a term greater than one year and cannot be cancelled by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct a Subsidiary of the Company without penalty or further payment and without more than 60 days’ notice; and
(xvii) any of its Subsidiaries or any of their respective Affiliates other Contract not referenced in the foregoing clauses (including Parent and its Affiliates after the Effective Time), in any such case, which i) through (xvi) that is material to the business, operations, assets, financial condition, results of operations or prospects of the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies Except for terminations of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectContracts contemplated by Sections 6.19 and 6.20, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is valid, binding and in full force and effect, effect and is the valid, binding and enforceable obligation of against the Company and or one of its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptionsin accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at Law), (iiiii) the Company and or one of its Subsidiaries have Subsidiaries, if applicable, has performed all material obligations required to be performed by them to date it under the Company Material Contracts and are it is not (with or without the lapse of time or the giving of notice, or both) in breach thereunder or default in any material respect thereunder, (iii) to the Knowledge of the Company, (A) no other party to any Company Material Contract is (with or without the lapse of time or the giving of notice, or both) in breach or default in any material respect thereunder, and (B) no event has occurred or circumstance or condition exists (with or without the lapse of time or the giving of notice, or both) that may contravene, conflict with, or result in a violation or breach of any Company Material Contract, result in the termination or in a right of termination or cancellation of, or accelerate the performance required by, or result in the triggering of any payment obligations under, or result in the creation of any Encumbrance upon any of the assets or properties of the Company or any of its Subsidiaries under, or result in being declared void, voidable, or without further binding effect, or result in any other modification of or trigger any right or obligation under, any Company Material Contract or provisions thereof; (iv) no party to any Company Material Contract has given any written notice of an alleged breach thereof or otherwise threatened such a breach; and (v) neither the Company nor any of its Subsidiaries has received any written notice of termination with respect tothat any party to any Company Material Contract intends to cancel or terminate such Company Material Contract, to renegotiate such Company Material Contract, or to exercise or not exercise any options thereunder, and, to the Knowledge of the Company, no party such intent to cancel, terminate, renegotiate or exercise has threatened been otherwise threatened.
(c) Except for terminations of Company Material Contracts contemplated by Sections 6.19 and 6.20, the execution and delivery by the Company of this Agreement and the Ancillary Agreements to terminatewhich it is a party, and the consummation of the Transactions contemplated hereby and thereby in accordance with the terms hereof and thereof, will not violate, or conflict with, or result in a material breach of any provision of, or constitute a material default (or an event that, with notice or lapse of time or both, would constitute a material breach or default) under, or result in the termination or in a right of termination or cancellation of, or accelerate the performance required by, or result in the triggering of any payment obligations under, or result in the creation of any Encumbrance upon any of the assets or properties of the Company or its Subsidiaries under, or result in being declared void, voidable, or without further binding effect, or result in any other modification of or trigger any right or obligation under, any Company Material ContractContract or provision thereof.
(d) Except as set forth on Schedule 5.18(d) of the Company Disclosure Schedule, no consent of any party to a Company Material Contract is required in connection with the execution, delivery and performance of this Agreement and the Ancillary Agreements and the consummation of the Transactions.
(e) True, complete and accurate copies (or, as to oral Contracts, written summaries of the terms), of the Company Material Contracts entered into on or prior to the date hereof have been provided or made available to Parent and true, complete and accurate copies (or, as to oral Contracts, written summaries of the terms) of any Company Material Contracts entered into after the date hereof and prior to or on the Closing Date will be provided or made available to Parent promptly after being so entered into.
Appears in 2 contracts
Sources: Merger Agreement (Healthtronics, Inc.), Merger Agreement (Endocare Inc)
Material Contracts. (a) Section 3.9(a) 4.15 of the Company Disclosure Letter Schedules sets forth a true, correct and complete and correct list list, as of the date of this Agreement, excluding of the following Contracts (but not including any Contract that (xLease Agreements or Company Employee Plans) by which any of the Company or any of the Company Subsidiaries is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) bound and under which the Company or any of its the Company Subsidiaries has any current or future rights, ongoing executory obligations or liabilities or the ability to which enforce rights thereunder (collectively, the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) each Contract (other than this Agreement) that is required to be filed by the Company as a material contract “Material Contract” pursuant to Item 601(b)(10) of Regulation S-K of under the SEC but is not so filedSecurities Act;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) each Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by to which the Company or any of its the Company Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) is a party that restricts in any respect the operations or conduct ability of the Company or any of its the Company Subsidiaries to compete in any business or with any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)Person in any geographical area, in any such each case, which in a manner that is material to the Company and its the Company Subsidiaries, taken as a whole;
(viii) each credit agreement, note, debenture, bond, indenture and other similar Contract pursuant to which any Contract containing covenants binding upon Indebtedness of the Company, any of its Subsidiaries, Company or any of their respective Affiliates the Company Subsidiaries, in each case in excess of $250,000 is outstanding or may be incurred, other than any such Contract between or among any of the Company or any of the Company Subsidiaries;
(including Parent and its Affiliates after iv) each Contract to which the Effective Time) that materially restricts Company or any of the ability of Company Subsidiaries is a party with an ISO, sales representative, sales agent, referral partner, sub-agent or any other Person pursuant to which the Company or any of its Subsidiaries generated $250,000 or such Affiliate more in the twelve (12) month period ended December 31, 2017;
(v) each Contract to compete which the Company or any of the Company Subsidiaries is a party that is expected to result in any business, or with any Person or aggregate payments in any geographic area, except for any such Contract that may be canceled without penalty excess of $250,000 by the Company or any of its Subsidiaries upon notice in the twelve (12) month period ending December 31, 2018, except for (1) Lease Agreements or (2) Contracts relating to the acquisitions and dispositions of 60 days or lessproperties and assets in the ordinary course of business;
(vi) any each Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
entered into within two (vii2) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms years of the relationship between the parties, that is (A) a Material Customer date of this Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to which the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company Subsidiaries is a party for the acquisition or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making disposition by the Company or any of its the Company Subsidiaries of payments properties or assets for, in each case, aggregate consideration of more than $250,000 except for acquisitions and dispositions of properties and assets in the future in excess ordinary course of $100,000 per annum business;
(vii) each Contract (1) under which the Company or $500,000 during the life any of the Contract. Each Company Subsidiaries licenses any Licensed Company IP Rights (other than licenses for commercially-available software) that by its terms calls for fees related to the use of Licensed Company IP Rights by the Company or any of the Company Subsidiaries of more than $250,000 over the remaining term of such Contract described in clauses (assuming, where applicable, that the sales or user levels remain at the same levels as fiscal year 2017), or (2) under which the Company or any of the Company Subsidiaries has licensed any Company Owned IP to Third Parties (i) – under an exclusive license or (ii) that by its terms calls for aggregate royalty payments related to the use of Company Owned IP payable to the Company or any of the Company Subsidiaries of more than $250,000 over the remaining term of such Contract (assuming, where applicable, that the sales or user levels remain at the same levels as fiscal year 2017);
(viii) each Contract under which the Company or any Company Subsidiary has granted any Person registration rights (including demand and piggy-back registration rights);
(ix) each Contract relating to the Warrants;
(x) each Contract relating to the acquisition or disposition of any Person, business or operations or assets constituting a business (whether by merger, sale of stock, sale of assets, consolidation or otherwise) entered into since December 31, 2015 (including any such Contract under which contemplated transactions were consummated but under which one or more of the parties thereto has executory indemnification, earn-out or other liabilities);
(xi) each Contract which provides for a loan or advance of any amount to any employee of the Company or any temporary agency employee or individual consultant of the Company or any Company Subsidiary, other than the advancement of travel and other business expenses in the ordinary course of business;
(xii) each Contract (other than pursuant to Organizational Documents) providing for indemnification by the Company or any Company Subsidiary of any officer, director or employee of the Company;
(xiii) (each Contract or arrangement that is not excluded pursuant involves any officer or director or, to clause (x) or (y) the Company’s Knowledge, equityholder of the lead-Company, or any Affiliate, spouse or sibling of such Persons;
(xiv) each Contract with any Card Network or with Principal Members of the Card Networks, in language each case enabling the Company or a Company Subsidiary to participate in Section 3.9(a)), whether a Card Network; or
(xv) each Contract to which the Company or not set forth on Section 3.9(a) any of the Company Disclosure LetterSubsidiaries is a party constituting a joint venture, is referred partnership, limited liability or other similar agreement (excluding licensing Contracts) relating to herein as a “Company Material Contractthe formation, creation, operation, management or control of any partnership or joint venture.”
(b) True The Company has Made Available to Parent true, correct and correct in all material respects complete copies of each Company Material Contract. Each Material Contract have been made available to Parent or publicly filed with the SEC prior to is, as of the date hereof. Except , in full force and effect and a valid and binding agreement enforceable against the Company or any of the Company Subsidiaries party thereto and, to the Company’s Knowledge, each other party thereto, in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. As of the date of this Agreement, (i) neither none of the Company nor any of its the Company Subsidiaries is (andparty to, nor, to the Knowledge Company’s Knowledge, any other party to, any Material Contract is in breach of or default under, or has provided or received any written notice of any intention to terminate or seek renegotiation of, any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. As of the date of this Agreement, no event or circumstance has occurred that, with or without notice or lapse of time or both, would (i) constitute a material breach of or material event of default by the Company, (ii) result in a right of termination for the counterparty or (iii) cause or permit the acceleration of, or other material changes to, any material right of the counterparty or obligation of the Company, no other party is) in default each case, under any Company Material Contract, except, in the case of each of clauses (i), (ii) each of the and (iii), as has not had a Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractAdverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (JetPay Corp), Agreement and Plan of Merger (NCR Corp)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as As of the date of this Agreement, excluding the Company and its Subsidiaries are not a party to or bound by any Contract that (xexcluding the Benefit Plans listed on Section 5.9(a) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:Disclosure Schedule):
(i) Contract (other than this Agreement) that is would be required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedSEC;
(ii) that is or creates a Partnership with any other Person that is material to the Company and its Subsidiaries, taken as a whole, or that relates to the formation, operation, management or control of any such Partnership;
(iii) that (A) is an indenture, credit agreement, loan agreement, security agreement, guaranteeguarantee of, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness indebtedness (including obligations under any capitalized leases) in excess of $100,000500,000 (other than agreements between the Company and any wholly owned Subsidiary or between wholly owned Subsidiaries) or pursuant to which the Company or any of its Subsidiaries guarantees any such indebtedness of any other Person (other than the Company or another wholly owned Subsidiary), (B) materially restricts the Company’s ability to incur indebtedness or guarantee the indebtedness of others, (C) grants a Lien (other than a Permitted Lien) or restricts the granting of Liens on any property or asset of the Company or its Subsidiaries that is material to the Company and its Subsidiaries, taken as a whole, or (D) is an interest rate derivative, currency derivative or other hedging contract other than foreign currency cash flow ▇▇▇▇▇▇ entered into in the ordinary course of business and classified as cash flow ▇▇▇▇▇▇ for accounting purposes;
(iiiiv) that is a Contract (other than this Agreement) for the acquisition of any corporation, partnership or limited liability company or business, or sale of any of its assets Subsidiaries or businesses, in each case, after the date hereof hereof, in each case with a fair market value or purchase price (including assumption of debt) in excess of $500,000 (other than sales of inventory, product or obsolete equipment (x) in the ordinary course of business consistent with past practiceor (y) intercompany agreements);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (Bv) that restricts in is a Contract providing for the outsourcing, contract manufacturing, testing, assembly or fabrication, as applicable, of any respect the operations products, technology or conduct services of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent under which the Company and its Affiliates after Subsidiaries have made or received payments in excess of $750,000 in the Effective Time)fiscal year ended March 29, in any such case2015, which is or April 3, 2016, or that would otherwise reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole;
(vvi) that is a dealer, distributor, OEM (original equipment manufacturer), VAR (value added reseller), sales representative or similar Contract under which any third party is authorized to sell, sublicense, lease, distribute, market or take orders for the Company Products (A) with a third party that was one of the Company’s top twenty (20) customers by revenue in the fiscal year ended March 29, 2015, or April 3, 2016 or (B) under which the Company and its Subsidiaries made or received payments in excess of $750,000 in the fiscal year ended March 29, 2015, or April 3, 2016;
(vii) with respect to the acquisition or disposition of any corporation, partnership, limited liability company or business (whether by merger, amalgamation, consolidation or other business combination, sale of assets, sale of capital stock, tender offer, exchange offer, or similar transaction) pursuant to which the Company or any of its Subsidiaries has (A) material continuing indemnification obligations (and was entered into after March 1, 2005), or (B) any “earn-out” or similar contingent payment obligations in excess of $500,000 (other than any Contract containing covenants binding upon that provides solely for the acquisition of inventory, raw materials or equipment in the ordinary course);
(viii) that contains a right of first refusal, first offer, or first negotiation, or a call or put right, with respect to any asset that would reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole;
(ix) that prohibits or restricts the payment of dividends or distributions in respect of the Company’s shares or capital stock;
(x) that is a purchase or sale agreement with any Significant Customer or Significant Supplier under which the Company and its Subsidiaries have made or received payments in excess of $500,000 in the fiscal year ended March 29, 2015, or April 3, 2016;
(xi) under which (A) any person (other than the Company or any of its Subsidiaries, ) is guaranteeing any liabilities or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability obligations of the Company or any of its Subsidiaries or such Affiliate to compete in any businessSubsidiaries, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by (B) the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or has “most favored nationstake-or-pay” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contractobligations;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of that is between the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between Subsidiaries, on the one hand, and any of the Company’s wholly owned or its Subsidiaries’ respective directors or officers or stockholders who own five percent (5%) that contain obligations or more of the Company Common Stock;
(xiii) providing for the creation or imposition of any Lien, other than a Permitted Lien, with respect to any assets (including “earnout” Intellectual Property or other contingent payment obligationsintangible assets) that would reasonably be expected to result be material to the conduct of the business of the Company and its Subsidiaries as currently conducted, taken as a whole;
(xiv) that is a settlement, conciliation or similar agreement (x) with any Governmental Entity which (A) materially restricts or imposes material obligations upon the Company or its Subsidiaries, or (B) disrupts the business of the Company and its Subsidiaries as currently conducted in the receipt any material respect, or making by (y) which would require the Company or any of its Subsidiaries to make aggregate payments of payments in more than $250,000 after the future in excess date of $100,000 per annum this Agreement; or
(xv) with any Governmental Entity, or $500,000 during for the life purpose of fulfilling a Contract or order from any Governmental Entity as the ultimate customer, that would reasonably be expected to be material to the conduct of the Contractbusiness of the Company and its Subsidiaries as currently conducted, taken as a whole. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (xi)-(xiv) or (y) of the lead-in language in Section 3.9(a)5.8(c), whether or not set forth on Section 3.9(a) of the together with each Material Company Disclosure LetterLicense-In Agreement and Material Company License-Out Agreement, is referred to herein as a “Company Material Contract”.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to havebe material, individually or in the aggregate, to the Company and its Subsidiaries, taken as a Company Material Adverse Effectwhole, (i) neither each Material Contract is enforceable against the Company nor any of in accordance with its Subsidiaries is (terms and, to the Knowledge of the Company, no each other party is) in default under any Company Material Contractthereto, (ii) each of the Company Material Contracts and is in full force and effect, and is the valid, binding and enforceable obligation of (ii) the Company and or its Subsidiaries, and on the one hand, and, to the Knowledge of the Company, of each other party to each Material Contract, on the other parties theretohand, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date it under the Company such Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect toContract, and, to the Knowledge of the Company, no event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time) will, or would reasonably be expected to, (A) constitute such a violation or breach, (B) give any Person the right to accelerate the maturity or performance of any Material Contract, or (C) give any Person the right to cancel, terminate or modify any Material Contract, and (iv) as of the date of this Agreement, neither the Company nor any of its Subsidiaries has received written notice, or otherwise has Knowledge, (A) that any other party has threatened to terminateany Material Contract intends to terminate or request material changes in any Material Contract, or (B) of any Company material dispute related to any Material Contract.
(c) As of the date of this Agreement, neither the Company nor any of its Subsidiaries is a party to or bound by any Contract that (i) contains any provisions materially restricting the right of the Company or any of its Subsidiaries (A) to engage in any line of business, compete or transact in any business or with any Person or in any geographic area, or (B) to acquire any material product or other material asset or service from any other Person; (ii) grants exclusive rights to license, market, sell or deliver any Company Product; or (iii) contains any “most favored nation” or similar provisions in favor of the other party.
Appears in 2 contracts
Sources: Merger Agreement (Qlogic Corp), Merger Agreement (Cavium, Inc.)
Material Contracts. (ai) Section 3.9(a) of the The Company Disclosure Letter sets forth a has made available to Parent true, correct and complete copies of, all Contracts and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates other instruments to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current is a party or future rights, obligations or liabilities or to by which the Company or Company, any of its Subsidiaries or any of their respective properties or assets is subject:
bound that (iA) Contract contain covenants that limit the ability of the Company or any of its Subsidiaries, or which, following the consummation of the Merger, could restrict the ability of Parent or any of its affiliates as of immediately prior to the Effective Time or the Surviving Corporation, to compete or operate in any business or with any Person or in any geographic area, or to sell, supply or distribute any service or product or to otherwise operate or expand its current or future businesses; (B) involve any exchange traded, over-the-counter or other swap, cap, floor, collar, futures contract, forward contract, option or any other derivative financial instrument; (C) relate to indebtedness for borrowed money, guarantees or similar obligations; (D) involve, since the Applicable Date, the acquisition or disposition, directly or indirectly (by merger or otherwise), of assets or capital stock or other equity interests of another person for aggregate consideration under such contract in excess of $10 million (other than this Agreementacquisitions or dispositions of assets in the ordinary course of business, including acquisitions and dispositions of inventory); (E) relate to a material joint venture, partnership, limited liability or other similar agreement or arrangement; (F) by its terms calls for aggregate payments by the Company and its Subsidiaries or aggregate payments to the Company and its Subsidiaries under such Contract of more than $2 million over the remaining term of such Contract; (G) with respect to any acquisition by the Company or its Subsidiaries pursuant to which the Company or any of its Subsidiaries has continuing indemnification, “earn-out” or other contingent payment obligations, in each case, that is could result in payments in excess of $2 million; (H) involve any directors, executive officers or 5% stockholders of the Company; (I) involve any labor union or other employee organization, including any works council or foreign trade union or trade association; or (J) would be required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance promulgated by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the ContractSEC. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (xA) or through (yJ) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(bii) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries has received any written notice or claim of default under any Material Contract or any written notice of an intention to terminate, not renew or challenge the validity or enforceability of any Material Contract and (ii) each of the Material Contracts is (in full force and effect and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, thereto (except that such enforceability is subject to the General Enforceability Exceptions, (iii) the Company Bankruptcy and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractEquity Exception).
Appears in 2 contracts
Sources: Merger Agreement (ReAble Therapeutics Finance LLC), Merger Agreement (Djo Inc)
Material Contracts. (a) All Contracts required to be filed as exhibits to the Company SEC Documents have been so filed in a timely manner. Except as set forth in Section 3.9(a3.17(a) of the Company Disclosure Letter sets forth a complete and correct list as of the date of this AgreementLetter, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which neither the Company or nor any of its Subsidiaries has any current is a party to, or future rightsbound by, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:the following (each, a “Company Material Contract”):
(i) any Contract (other than this Agreement) that is required to be filed by the Company a “material contract” (as a material contract pursuant to such term is defined in Item 601(b)(10) of Regulation S-K of the SEC but is not so filedExchange Act);
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage any Contract relating to indebtedness for money borrowed or guaranteed indebtedness for money borrowed of any Person (other evidence of Indebtedness or agreement providing for Indebtedness than the Company and its Subsidiaries) in excess of Two Million Dollars ($100,0002,000,000);
(iii) any Contract that (other than this AgreementA) for the sale restricts it from participating or competing in any line of business, market or geographic area or (B) grants any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)exclusive rights to any Person;
(iv) settlement any joint venture, partnership or limited liability company agreements or other similar agreements or arrangements relating to the formation, creation, operation, management or control of any joint venture, partnership or limited liability company, other than any such agreements or arrangements solely between or among the Company and/or its wholly owned Subsidiaries;
(v) any collective bargaining agreement or similar other Contract to or with any labor union or other employee representative of a Governmental Entity group of employees;
(Avi) involving future performance any employment, retention, severance, change in control or consulting agreement;
(vii) any Contract, including any employment, retention, severance, change in control or consulting agreement, and stock option plan, stock incentive plan, stock appreciation rights plan, or stock purchase plan, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated, by the occurrence of any of the transactions contemplated by this Agreement (either alone or in combination with any subsequent event or events) or the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated by this Agreement;
(viii) any Contract between the Company and any of its Affiliates, other than any such Contract solely between or among the Company and/or its wholly owned Subsidiaries;
(ix) any Material IP Contracts and other Major Properties Contracts;
(x) any Contract relating to the disposition or acquisition by the Company or any of its Subsidiaries of assets or properties in excess of Two Million Dollars ($2,000,000), other than Material IP Contracts;
(xi) any Contract the termination of their respective Affiliates which would reasonably be expected to have a Company Material Adverse Effect; or
(including Parent and its Affiliates after the Effective Timexii) any other Contract that contains outstanding obligations in excess of Two Million Dollars ($2,000,000) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is otherwise material to the Company and its Subsidiariescondition (financial or otherwise), taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, properties, assets or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any results of its Subsidiaries upon notice operations of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);.
(xb) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers As of the Company or its Subsidiaries; and
(xiii) other Contracts (other than date of this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company has made available to Parent true, correct and any complete copies of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiariesall Company Material Contracts.
(c) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not Except as set forth or described on Section 3.9(a3.17(c) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (andnor, to the Knowledge of the Company, no any other party is) to a Company Material Contract, is in material breach or violation of, or in material default under under, any Company Material Contract, (ii) each with respect to either the Company or any of its Subsidiaries or, to the Knowledge of the Company, any other party to a Company Material Contracts Contract, no event has occurred or circumstance exists which would result in a material breach or violation of, or a material default under, any Company Material Contract (in each case, with or without notice or lapse of time or both) and (iii) each Company Material Contract is in full force valid and effect, and is the valid, binding and enforceable obligation on each of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect toas applicable, and, to the Knowledge of the Company, no each other party has threatened thereto and enforceable in accordance with its terms, subject to terminateapplicable bankruptcy, any insolvency, fraudulent conveyance, reorganization, rehabilitation, liquidation, preferential transfer, moratorium and similar Laws now or hereafter affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at equity or law), and is in full force and effect with respect to each of the Company Material Contractand its Subsidiaries, as applicable and, to the Knowledge of the Company, each other party thereto. In the ordinary course of business, the Company and its Subsidiaries do not enter into Contracts providing for most favored customer pricing or similar terms to third parties.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Marvel Entertainment, Inc.)
Material Contracts. (a) Section 3.9(aSchedule 3.10(a) lists each of the following Contracts of the Company Disclosure Letter sets forth a complete and correct list as that are currently pending or in effect together with all Real Estate Leases listed in Section 3.9 of the date of this AgreementDisclosure Schedules, excluding any Contract that (x) is or relates to a Company Plancollectively, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedIntentionally Omitted;
(ii) indentureall agreements that relate to the sale of any Company’s assets, credit agreementother than in the ordinary course of business, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness consideration in excess of $100,0005,000;
(iii) Contract all agreements that relate to the acquisition of any business, a material amount of stock or assets of any other Person or any real property (other than this Agreement) for the whether by merger, sale of any stock, sale of its assets after the date hereof (other than sales or otherwise), in each case involving amounts in excess of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)$5,000;
(iv) settlement agreement except for agreements relating to trade receivables, all agreements relating to indebtedness for borrowed money (including, without limitation, guarantees) of the Company, in each case having an outstanding principal amount in excess of $5,000;
(v) all agreements between or similar Contract with a Governmental Entity among the Company on the one hand and Seller or any Affiliate of Seller (other than Company) on the other hand;
(vi) relating to (A) involving future performance the employment or engagement or termination of employment or engagement of any Person as an employee, consultant, representative or agent by the Company which may not be terminated without penalty or any of its Subsidiaries or any of their respective Affiliates other obligation (including Parent and its Affiliates after any severance, termination or indemnification payment required under such Contract) by the Effective Time) Company; or (B) that restricts in the payment to any respect Person by the operations Company of any bonus, award, payment or conduct other remuneration of any kind which is contingent on a sale of the Company or any of its Subsidiaries assets or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), change in any such case, which is material to the Company and its Subsidiaries, taken as a wholecontrol;
(vvii) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts limiting the ability of the Company to engage in any line of business or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;Person; and
(viii) all collective bargaining agreements or agreements with any Contractlabor organization, excluding any purchase order union or similar documentation that does not contain material terms of the relationship between the parties, that association to which theCompany is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractparty.”
(b) True The Company has delivered or made available to the Purchaser accurate and correct in all material respects complete copies of each of the Material Contracts. The Company is not in breach of, or default under, any Material Contract have been made available to Parent Contract, except for such breaches or publicly filed with the SEC prior to the date hereof. Except as defaults that would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Stock Purchase Agreement (SharedLabs, Inc), Stock Purchase Agreement (SharedLabs, Inc)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as of the date For purposes of this Agreement, excluding any Contract that (x) is or relates to a “Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or Material Contract” shall mean any of its Subsidiaries has any current or future rights, obligations or liabilities or the following to which the Company or any of its Subsidiaries or any of their respective properties or assets subsidiaries is subjecta party:
(i) Contract “material contract” (other than this Agreement) that as such term is required to be filed by the Company as a material contract pursuant to Item defined in item 601(b)(10) of Regulation S-K of the SEC but is not so filedSEC);
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage contract or other evidence of instrument relating to Indebtedness for borrowed money or agreement providing for Indebtedness third-party financial guarantee with a principal amount in excess of $100,0005,000,000;
(iii) Contract (contract, agreement or arrangement, other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventorycontracts, product or obsolete equipment agreements, arrangements and purchase orders entered into in the ordinary course of business consistent (which shall include those contracts, agreements, arrangements and purchase orders with past practicecustomers for the sale of inventory and related to the purchase of finished goods or raw materials);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by , under which the Company or any of its Subsidiaries subsidiaries is (A) subject to restrictions on the right of such person to compete with any person anywhere in the world in any material respect in connection with the marketing and sale of beauty and cosmetic products to retailers, (B) prevented from entering into any territory, market or geographic region, (C) grants “most favored nation” status to another person or includes a “take or pay” provision or (D) grants a right of exclusivity to any third party supplier, distributor or licensee, in each case of their respective Affiliates (including Parent and its Affiliates after the Effective TimeA), (B), (C) or (BD) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiariessubsidiaries, taken as a whole;
(iv) contract or agreement relating to the formation, creation, ownership, operation, management or control of any partnership, joint venture, alliance or revenue or earnings sharing arrangement that is material to the Company and its subsidiaries taken as a whole;
(v) contract entered into since June 30, 2014 providing for the disposition or acquisition of any Contract containing covenants binding upon assets, business or securities of any person (other than the Company) for an aggregate consideration in excess of $5,000,000, other than purchase orders related to the purchase of finished goods or raw materials or sale of inventory in the ordinary course of business;
(vi) contract with any of the (A) ten (10) largest customers of the Company and its Subsidiariessubsidiaries (each, a “Major Customer”), as measured by the dollar value of goods or services sold since June 30, 2015 through the date of this Agreement, (B) ten (10) largest third-party manufacturers of the Company or its subsidiaries, (each, a “Major Manufacturer”), as measured by the dollar value of goods or services purchased since June 30, 2015 through the date of this Agreement, or any (C) Company’s material fragrance oil suppliers, in each case, other than contracts and purchase orders related to the purchase of their respective Affiliates finished goods or raw materials or sale of inventory in the ordinary course of business;
(including Parent vii) license (inbound and its Affiliates after the Effective Time) that materially restricts the ability of outbound), sublicense, development agreement, or other contract, agreement or arrangement under which the Company or any of its Subsidiaries subsidiaries grants or such Affiliate receives the right to compete in use any businessIntellectual Property Rights (other than licenses for readily available commercial software and licenses that under their current terms will expire on or prior to December 31, 2016) that (A) involve the payment or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty receipt of amounts by the Company or any of its Subsidiaries upon notice subsidiaries of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement more than $5,000,000 in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, twelve month period or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses relate to product endorsements, sponsorships or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations promotional arrangements (including “earnout” celebrity product endorsements or other contingent sponsorships) and (y) involve the payment obligations) that would reasonably be expected to result in the receipt or making of amounts by the Company or any of its Subsidiaries subsidiaries of payments more than $5,000,000 in any twelve month period (collectively, the “License and Endorsement Agreements”), in each case, other than purchase orders related to the purchase of finished goods or raw materials or sale of inventory in the future ordinary course of business;
(viii) contract providing for the Company or any of its subsidiaries to purchase all of its requirements for, or all of a third party’s output of, any product or service, or providing for the Company or any of its subsidiaries to sell all of its output of, or supply all of a third party’s requirements for, any product or service;
(ix) any interest rate, currency or commodity swap, exchange commodity option or hedging contract, agreement, instrument or other arrangement with a remaining term in excess of ninety (90) days that is material to the Company and its subsidiaries, taken as a whole, or pursuant to which a termination payment in excess of $100,000 per annum 5,000,000 would be payable by or $500,000 during to the life Company or any of its subsidiaries were such hedge to be liquidated on the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause date of this Agreement; or
(x) written license, sublicense or (y) other written contract, agreement or arrangement relating or pertaining to Red Door Spa that is material to the Company and its subsidiaries as a whole, taken as a whole, or, to the knowledge of the lead-in language in Section 3.9(a))Company, whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred material to herein as a “Company Material ContractRed Door Spa.”
(b) True and correct in all material respects copies of each Each Company Material Contract have has been made available to Parent or publicly filed with the SEC prior to as of the date hereof. Except Neither the Company nor any subsidiary of the Company is in breach of or default under the terms of any Company Material Contract where such breach or default would have, or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the knowledge of the Company, no other party to any Company Material Contract is in breach of or default under the terms of any Company Material Contract where such breach or default would have, or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each Company Material Contract is a valid and binding obligation of the Company and, to the knowledge of the Company, is in full force and effect, except as would not have, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, ; provided that (i) neither the Company nor any of its Subsidiaries is (andsuch enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Legal Requirements, now or hereafter in effect, relating to the Knowledge of the Company, no other party is) in default under any Company Material Contract, creditors’ rights generally and (ii) each equitable remedies of the Company Material Contracts is in full force specific performance and effect, injunctive and is the valid, binding and enforceable obligation other forms of the Company and its Subsidiaries, equitable relief may be subject to equitable defenses and to the Knowledge discretion of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to court before which any proceeding therefor may be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contractbrought.
Appears in 2 contracts
Sources: Merger Agreement (Revlon Inc /De/), Merger Agreement (Elizabeth Arden Inc)
Material Contracts. (a) Section 3.9(a) For all purposes of the Company Disclosure Letter sets forth a complete and correct list as of the date of under this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject“Material Contract” shall mean:
(i) Contract (other than this Agreement) any agreement that is would be required to be filed by the Company as a “material contract contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act or that would be required to be disclosed under Item 404 of Regulations S-K under the SEC but is not so filedSecurities Act;
(ii) indentureany employment or consulting Contract (in each case, credit agreementunder which the Company has continuing obligations as of the date hereof) with respect to any employee or consultant in the United States that either (A) is for a fixed term of employment or services (but in the case of consulting agreements, loan agreement, security agreement, guarantee, note, mortgage only if such fixed term exceeds 2 months) or other evidence of Indebtedness (B) provides for severance or agreement providing for Indebtedness termination payments in an amount in excess of $100,000the Company’s standard severance policy;
(iii) any Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by limiting the Company freedom or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct right of the Company or any of its Subsidiaries to engage in any line of business, to make use of any material Intellectual Property or to compete with any Person in any line of their respective Affiliates (including Parent and its Affiliates after the Effective Time)business or in any location, in any such case, which is in a manner that would be material to the Company and its Subsidiaries, taken as a whole, or (B) containing exclusivity obligations or restrictions or otherwise prohibiting or limiting the freedom or right of the Company or its Subsidiaries to sell, distribute or manufacture any products or services or to purchase or otherwise obtain any Software, components, parts or subassemblies, or to exploit any material tangible or intangible property or assets, in any such case, in a manner that would be material to the Company and its Subsidiaries, taken as a whole;
(viv) any Contract containing covenants binding upon (A) relating to the Companylicense, any of its Subsidiaries, disposition or any of their respective Affiliates acquisition (including Parent and its Affiliates after the Effective Timedirectly or indirectly) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws material amount of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements assets other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries(B) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected pursuant to result in the receipt or making by which the Company or any of its Subsidiaries of payments will acquire any material interest in any other Person, other business enterprise other than the future in excess of $100,000 per annum Company’s Subsidiaries or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) any real property, or (yC) for the acquisition or disposition of the leadany business containing any profit sharing arrangements or “earn-in language out” arrangements, indemnification obligations or other contingent payment obligations;
(v) any Company Intellectual Property Agreements set forth in Section 3.9(a)), whether or not set forth on Section 3.9(a4.15(b) of the Company Disclosure Letter;
(vi) any Contract that relates to the formation, creation, operation, management or control of any (A) joint venture or (B) partnership, collaboration, limited liability company, joint marketing, distribution or similar arrangement that, in the case of clause (B), is referred material to herein the Company and its Subsidiaries, taken as a whole, or pursuant to which the Company or any of its Subsidiaries has an obligation (contingent or otherwise) to make a material investment in or material extension of credit to any Person;
(vii) any Contract or series of related Contracts for the purchase of materials, supplies, goods, services, equipment or other assets under which the Company and the Company’s Subsidiaries made payments of $1,000,000.00 or more during the twelve-month period ending on the Company Balance Sheet Date;
(viii) any sales, distribution, agency or other similar agreement providing for the sale by the Company or any of the Company’s Subsidiaries of materials, supplies, goods, services, equipment or other assets that is with one of the 50 largest customers of the Company and its Subsidiaries, or one of the 20 largest resellers of the Company and its Subsidiaries, in each case determined by revenues received by the Company and its Subsidiaries on a consolidated basis during the fiscal year ended March 31, 2010;
(ix) any agreement (including any “take-or-pay” or keepwell agreement) under which (A) any Person (other than the Company or any of the Company’s Subsidiaries) has directly or indirectly guaranteed any liabilities or obligations of the Company or any of the Company’s Subsidiaries or (B) the Company or any of the Company’s Subsidiaries has directly or indirectly guaranteed any liabilities or obligations of any other Person (other than the Company or any of the Company’s Subsidiaries), in each case of clauses (A) and (B), other than endorsements for the purpose of collection in the ordinary course of business;
(x) any Government Contract under which the Company and the Company’s Subsidiaries made or received payments of $1,000,000.00 or more during the twelve-month period ending on the Company Balance Sheet Date;
(xi) any Contract that involves or relates to indebtedness for borrowed money (whether incurred, assumed, guaranteed or secured by any asset) outside the ordinary course of business; and
(xii) any Contract, or group of Contracts with a Person (or group of affiliated Persons), the termination or breach of which would have a Company Material ContractAdverse Effect and is not disclosed pursuant to clauses (i) through (xi) above.”
(b) True and correct in all material respects copies Section 4.12(b) of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor Disclosure Letter contains a complete and accurate list of all Material Contracts to or by which the Company or any of its Subsidiaries is a party or is bound as of the date of this Agreement. As of the date hereof, true and complete copies of all Material Contracts (including all exhibits and schedules thereto) have been (i) publicly available in the Electronic Data Gathering, Analysis and Retrieval (▇▇▇▇▇) database of the SEC or (ii) made available to Parent.
(c) Each Material Contract is valid and binding on the Company or each such Subsidiary of the Company party thereto) and, to the Knowledge of the Company, no each other party is) in default under any Company Material Contractthereto, (ii) each of the Company Material Contracts and is in full force and effect, and is enforceable against the valid, binding and enforceable obligation Company or each such Subsidiary of the Company party thereto in accordance with its terms, except that such enforceability (i) may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and its Subsidiariesother similar laws affecting or relating to creditors’ rights generally and (ii) is subject to general principles of equity, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect tothat is a party thereto, andnor, to the Knowledge of the Company, no any other party has threatened to terminatethereto, is in material breach of, or material default under, any Company such Material Contract, and no event has occurred that with notice or lapse of time or both would constitute such a material breach or material default thereunder by the Company or any of its Subsidiaries, or, to the Knowledge of the Company, any other party thereto.
(d) With respect to each Government Contract to which a U.S. federal Governmental Authority is a party or that is a Material Contract, to the Knowledge of the Company, (i) all representations and certifications executed, acknowledged or set forth in or pertaining to such Governmental Contract were complete and correct in all material respects as of their effective date, and the Company and Company’s Subsidiaries, as applicable, have complied in all material respects with all such representations and certifications; (ii) neither the United States government nor any prime contractor, subcontractor or other Person has notified the Company or any of the Company’s Subsidiaries that the Company or any of the Company’s Subsidiaries has materially breached or materially violated any material certification, representation, clause, provision or requirement, pertaining to such Government Contract.
(e) To the Knowledge of the Company, neither the Company nor any of the Company’s Subsidiaries nor any of their respective directors, officers or employees is or has been under administrative, civil, or criminal investigation, or indictment or audit by any Governmental Authority with respect to any alleged irregularity, misstatement or omission arising under or relating to any Government Contract to which a U.S. federal Governmental Authority is a party or that is a Material Contract. Neither the Company nor any of Company’s Subsidiaries has conducted or initiated any internal investigation or made a voluntary disclosure to any Governmental Authority with respect to any alleged irregularity, misstatement or omission arising under or relating to a Government Contract to which a U.S. federal Governmental Authority is a party or that is a Material Contract. To the Knowledge of the Company, neither the Company nor any of the Company’s Subsidiaries nor any of their respective directors, officers or employees has been suspended or debarred from doing business with any Governmental Authority or is, or at any time has been, the subject of a finding of non-responsibility or ineligibility for contracting with any Governmental Authority.
Appears in 2 contracts
Sources: Merger Agreement (Hewlett Packard Co), Merger Agreement (Hewlett Packard Co)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets Except as set forth a complete in Schedule C.10 and correct list as of the date of this Agreementexcept for Contracts that do not constitute Boeing Contributed Assets or Boeing Assumed Liabilities, excluding any Contract that (x) is Boeing and its Subsidiaries, with respect to Boeing’s ELV Business, are not parties to or relates to a Company Plan, (y) relates exclusively to the BBGS Business otherwise bound by or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectsubject to:
(i) any written employment, severance, consulting or sales representative Contract that contains an obligation (excluding commissions) to pay more than $50,000 per year, any collective bargaining agreement or other than this Agreement) agreement with a labor union or any other agreement that is required contains an obligation either to be filed by the Company as employ a material contract pursuant specified number of employees or to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedmake a payment to any other Person in lieu thereof;
(ii) indentureany Contract containing any covenant limiting the freedom of Boeing or any of its Subsidiaries, credit agreementin respect of Boeing’s ELV Business or the operations of Boeing’s ELV Business, loan agreementto compete with any Person in any geographic area in any material respect if such Contract will be binding on the Company after the Closing;
(iii) any Contract requiring Boeing’s ELV Business to “take or pay” for a minimum number or volume of goods, security agreementor to purchase a minimum number or volume of goods used in the manufacture of ELV Systems in excess of requirements under applicable customer Contracts or otherwise guaranteeing any of the foregoing;
(iv) any Contract in effect on the date of this Agreement relating to the disposition or acquisition of the assets of, guaranteeor any interest in, noteany business enterprise that relates to Boeing’s ELV Business other than in the ordinary course of business;
(v) any Financial Support Arrangements;
(vi) any indebtedness for borrowed money of Boeing’s ELV Business that would constitute a Boeing Assumed Liability if in existence on the Closing Date, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness with a principal amount in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract (it being understood that would prevent for purposes of this representation, a purchase order issued under an existing master agreement will not constitute a separate Contract) with a supplier, vendor, or materially delay the Company from performing its obligations under this Agreement subcontractor with an aggregate contract value in any material respectexcess of $10,000,000;
(viii) any Contractteaming agreement or partnership, excluding any purchase order joint venture or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;agreement; or
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as with a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);foreign Governmental Authority.
(xb) Schedule C.10 sets forth any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts Contract (other than this Agreement, purchase orders in the ordinary course of business consistent a Government Contract) with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected a customer to result in the receipt or making by the Company which Boeing or any of its Subsidiaries is a party or otherwise bound for the provision of payments in the future Launch Services using ELV Systems with an aggregate contract value in excess of $100,000 per annum 50,000,000.
(c) Except as disclosed in Schedule C.10, each Contract disclosed in Schedule C.10 or $500,000 during Schedule C.07 is in full force and effect and constitutes a legal, valid and binding obligation of Boeing (or the life applicable Affiliated Transferor) enforceable against Boeing (or the applicable Affiliated Transferor) in accordance with its terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and subject to the Contract. Each limitations imposed by general equitable principles regardless of whether such Contract described enforceability is considered in clauses a proceeding at law or in equity), and Boeing (ior the applicable Affiliated Transferor) – (xiii) (that is not excluded pursuant in default and has not failed to clause (x) or (y) of the lead-in language in Section 3.9(a))perform any obligation thereunder, whether or not set forth on Section 3.9(a) of the Company Disclosure Letterand, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except knowledge of Boeing, there does not exist any event, condition or omission that would constitute a breach or default (whether by lapse of time or notice or both) by any other Person, except for any such default, failure or breach as would has not had, and could not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractEffect on Boeing’s ELV Business.
Appears in 2 contracts
Sources: Joint Venture Master Agreement (Lockheed Martin Corp), Joint Venture Master Agreement (Boeing Co)
Material Contracts. (a) Except for the Original Merger Agreement, the Contracts filed as exhibits to the Company SEC Reports, and the Contracts listed in Subsections (i) through (xxi) of Section 3.9(a3.16(a) of the Company Disclosure Letter sets forth a complete and correct list Schedule, as of the date of this AgreementOriginal Execution Date, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct none of the Company or any of its Subsidiaries is a party to or bound by the following Contracts:
(i) any Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract relating to the formation, creation, operation, management or control of any Subsidiary of the Company or any other partnership, joint venture, strategic collaboration, global affiliation or business cooperation, limited liability company or similar arrangement;
(iii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business) or advance to (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries 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 for more than US$5,000,000;
(iv) any Contract involving Indebtedness of the Company or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeSubsidiaries of more than US$5,000,000;
(v) any Contract containing covenants binding upon (including so called take-or-pay or keep-well agreements) under which any person (other than the Company, Company or any of its Subsidiaries, ) has directly or indirectly guaranteed Indebtedness of the Company or any of their respective Affiliates its Subsidiaries of more than US$5,000,000;
(vi) any Contract granting or evidencing a Lien on any properties or assets of the Company or any of its Subsidiaries with value of more than US$5,000,000, other than a Permitted Encumbrances;
(vii) any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(viii) any Contract for the acquisition, disposition, sale, transfer or lease (including Parent and leases in connection with financing transactions) of properties or assets of the Company or any of its Affiliates after the Effective TimeSubsidiaries that have a fair market value or purchase price of more than US$5,000,000 (by merger, purchase or sale of assets or stock or otherwise) entered into since December 31, 2014 or, if prior to that materially restricts date, have representations, warranties or indemnities that remain in effect or as to which claims are pending;
(ix) any Contracts involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other dispute with amount in controversy greater than US$5,000,000;
(x) any Contract involving a standstill or similar arrangement;
(xi) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except industry or line of business;
(xii) any Contract for the employment of any senior executive officer;
(xiii) any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$5,000,000;
(xiv) any Contract (other than Contracts granting Company Options, or Company RSs) giving the other party the right to terminate such Contract that may as a result of the Original Merger Agreement, this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any payment in excess of US$5,000,000 to be canceled without penalty made by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, calendar year or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material the value of the outstanding receivables due to the Company and its Subsidiaries taken as under such Contract is in excess of US$5,000,000 in any calendar year;
(xv) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) pledging of share capital of the Company or any of its Subsidiaries or (C) issuance of guarantee by the Company or any of its Subsidiaries;
(xvi) any Contract providing for (A) a wholelicense, covenant not to ▇▇▇ or that is material other right granted by any Third Party under any Intellectual Property to the Company or any of its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or Subsidiaries, (B) Contracts including non-exclusive licenses a license, covenant not to ▇▇▇ or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making right granted by the Company or any of its Subsidiaries to any Third Party under any Intellectual Property, (C) an indemnity of payments any person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or violation of any Intellectual Property right, or (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any person by reason of the ownership, use, sale or disposition of Intellectual Property, in each case of clauses (A) through (D), other than agreements for off-the-shelf Software and such Contracts that are not material to business of the Group Companies, taken as a whole, and in each case of clauses (C) and (D), other than Contracts entered into by the Company and its Subsidiaries in the future ordinary course of business;
(xvii) any Contract granting rights in excess respect of $100,000 per annum exclusivity, “most favored nation” or $500,000 during similar rights;
(xviii) any Contract between or among the life Company or any of its Subsidiaries, on the one hand, and any of their respective Affiliates (other than the Company or any of its Subsidiaries), on the other hand, that involves payments of more than US$5,000,000 in any one year;
(xix) each Control Agreement and any other any Contract which (A) provides the Company with effective control over any of its Subsidiaries in respect of which it does not, directly or indirectly, own a majority of the Contractequity interests (each, an “Operating Subsidiary”), (B) provides the Company or any of its Subsidiaries the right or option to purchase the equity interests in any Operating Subsidiary, or (C) transfers economic benefits from any Operating Subsidiary to any other Subsidiary of the Company;
(xx) any Contract between the Company or any of its Subsidiaries and any director or executive officer of the Company or any person beneficially owning five percent or more of the outstanding Shares required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act (including those that would be required to be disclosed if the Form 20-F were filed as of the Original Execution Date); or
(xxi) any other Contract which, if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract described in clauses (i) – to (xiiixxi) (and each such Contract that is would be a Material Contract if it had not excluded pursuant been filed as an exhibit to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, SEC Reports is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, : (i) neither each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in full force and effect and enforceable against such Group Company in accordance with its terms, subject to the Bankruptcy and Equity Exception; (ii) to the knowledge of the Company, each Material Contract is a legal, valid and binding obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception; (iii) no Group Company nor any of its Subsidiaries is (and, to the Knowledge knowledge of the Company, no other party is) counterparty, is or is alleged to be in breach or violation of, or default under under, any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and ; (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge knowledge of the Company, no party has threatened person intends to terminate, terminate any Company Material Contract; and (v) none of the execution of the Original Merger Agreement, the execution of this Agreement or the consummation of any Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the rights of any Group Company under any Material Contract. The Company has furnished or made available to Parent true and complete copies of all Material Contracts, including any amendments thereto.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Ocean Imagination L.P.), Agreement and Plan of Merger (Ctrip Investment Holding Ltd.)
Material Contracts. (a) Section 3.9(aSchedule 3.10(a) of the Company Disclosure Letter sets forth a correct and complete and correct list as of the date following types of this AgreementContracts to which any Company Entity is a party or under which any Company Entity has material continuing Liabilities (collectively, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively and together with the leases related to the BBGS Business or (z) is filed as an exhibit to any Company SEC DocumentLeased Real Property listed on Schedule 3.09(a), of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:"Material Contracts"):
(i) collective bargaining agreement or any other Contract (other than this Agreement) that is required to be filed by the Company as with a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedlabor union or association representing any Business Employee;
(ii) indenturebonus, credit agreementpension, loan agreementprofit sharing, security agreement, guarantee, note, mortgage retirement or other evidence form of Indebtedness or agreement providing for Indebtedness in excess of $100,000deferred compensation plan;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventoryequity purchase, product option or obsolete equipment in the ordinary course of business consistent with past practice)equity-based plan;
(iv) settlement agreement other than with respect to the Options, any employment, change of control, severance, consulting or similar restrictive covenant Contract with a Governmental Entity any current or former (A) involving future performance by the officer, director or manager of any Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or Entity, (B) that restricts in any respect the operations or conduct Business Employee (other than employment Contracts terminable at will without any further obligation of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective TimeEntities), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeor (C) individual independent contractor;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, as obligor or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate guarantor relating to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessIndebtedness;
(vi) any Contract with respect to a joint venture or partnership formed under the laws guaranty of any applicable jurisdictionobligation for borrowed money;
(vii) any Contract that would prevent under which it is lessee of, or materially delay holds or operates, any personal property owned by any other party, in each case, for which the Company from performing its obligations under this Agreement in any material respect;annual rental exceeds $150,000, or
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier AgreementLicenses-In and Licenses-Out;
(ix) (A) distribution, sales representative, marketing or similar agreement relating to the distribution, marketing or advertising of any of the Products, and (B) any Contract that contains between any exclusivity rights Company Entity, on the one hand, and any manufacturers' agents, brokers or “most favored nations” provisions or minimum use or supply requirements that are material selling agents, on the other hand, pursuant to which any Company Entity makes commission payments, including the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)Broker Agreements;
(x) any Government ContractContract that obligates any Company Entity or any of their Affiliates to conduct business on an exclusive or preferential basis or that contains a "most favored nation" or similar covenant with any Person;
(xi) any Related Party partnership or joint venture Contract;
(xii) any Contract relating to the acquisition or disposition of any material business (whether by merger, sale of stock, sale of assets or otherwise) pursuant to which any Company IP Agreements other than Entity has continuing obligations following the date hereof;
(xiii) any Contract that limits, impedes, interferes with or restricts the ability of any Company Entity or any of their Affiliates to (A) Shrink-Wrap Licenses compete with any Person in a product line or line of business, (B) operate in any geographic location, (C) engage in any line of business, or (D) solicit for employment, hire or employ any Person;
(xiv) any Contract that contains an exclusivity, requirements, "take or pay" or similar provision binding on any Company Entity;
(xv) any Contract with a Governmental Authority, other than customer Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to purchase or under Company Intellectual Property sale orders entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; andbusiness;
(xiiixvi) other any Contracts between or among any Company Entity on the one hand and Seller or any Affiliate of Seller (other than this Agreementany Company Entity) on the other hand;
(xvii) any Contract that grants any right of first refusal, right of first offer or similar right with respect to any assets, rights or properties of any Company Entity;
(xviii) any co-manufacturing Contract or supply Contract with a co-manufacturer;
(xix) any Contract with a Material Customer, other than purchase orders entered into in the ordinary course of business consistent business;
(xx) any Contract with past practicea Material Supplier;
(xxi) any professional employer organization Contract;
(xxii) other than Contracts with Material Customers and Material Suppliers, agreements between any Contract for the Company and any purchase for the purchase of its wholly owned Subsidiaries services or between any of the Company’s wholly owned Subsidiariesproducts providing for either (A) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making payments by the Company or any of its Subsidiaries of payments in the future in excess Entities of $100,000 per annum 1,000,000 or $500,000 during the life of the Contract. Each such Contract described more in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) any calendar year; or (yB) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of anticipated receipts by the Company Disclosure LetterEntities of $1,000,000 or more in any calendar year; and
(xxiii) any Contract restricting in any material respect any Company Entity's use or ownership of any Company Intellectual Property Rights, is referred any Contract resolving any dispute concerning Intellectual Property Rights, and any Contract adversely affecting any Company Entity's exclusive ownership of any Company-Owned Intellectual Property Rights, including coexistence agreements, consent agreements, settlement agreements, joint development agreements, covenants not to herein as a “Company Material Contract▇▇▇, co-branding agreements, co-marketing agreements, and assignments, other than Licenses-In and Licenses-Out.”
(b) True and correct in all material respects copies of each The Company Material Contract have been has made available to Parent or publicly filed with the SEC prior Purchasers a correct and complete copy of each Material Contract. Each Material Contract and other material Contract to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under which any Company Material Contract, (ii) each of the Company Material Contracts Entity is a party is in full force and effect, effect and is the valida legal, valid and binding and enforceable obligation of the applicable Company Entity, enforceable in accordance with its respective terms against the applicable Company Entity and, to Seller's Knowledge, each other party to such Material Contract or other material Contact, except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors' rights and its Subsidiariesgeneral principles of equity affecting the availability of specific performance and other equitable remedies. There is no existing material default or material breach by any Company Entity under any Material Contract or other material Contract to which any Company Entity is a party (or, and to the Knowledge Seller's Knowledge, event or condition that, with or without notice or lapse of the Companytime or both, could constitute such a material default or material breach) and, to Seller's Knowledge, there is no such default or breach (or event or condition that, with or without notice or lapse of the time or both, could constitute a default or breach) with respect to any other parties theretoparty to any Material Contract or other material Contract to which any Company Entity is a party. To Seller's Knowledge, subject there has not been any notice or threat to the General Enforceability Exceptionsterminate any Material Contract or any other material Contract to which any Company Entity is a party. To Seller's Knowledge, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not no event has occurred which (with or without the notice or lapse of time or the giving both) permits any termination, modification or acceleration of noticepayment, or bothrequires any payment, under any Material Contract or any other material Contract to which any Company Entity is a party.
(c) in breach thereunder Schedule 3.10(c) sets forth a correct and (iv) neither the complete list of each loan, application for assistance or stimulus payment that any Company nor any of its Subsidiaries Entity has received or for which any notice of termination with respect to, and, Company Entity has applied pursuant to the Knowledge Paycheck Protection Program loan, Economic Stabilization Fund loan or other United States Small Business Administration loan relating to COVID-19 (collectively, the "COVID-19 Assistance"). All certifications, representations and indications made by or on behalf of such Company Entity to any Person, including any Governmental Authority, in connection with the Company, no party has threatened to terminate, any Company Material ContractCOVID-19 Assistance were correct and complete in all respects when made and were prepared in compliance in all material respects with all applicable Laws.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Utz Brands, Inc.), Stock Purchase Agreement (Utz Brands, Inc.)
Material Contracts. (a) Section 3.9(a3.13(a) of the Company Disclosure Letter sets forth a complete and correct list as Schedule lists each of the date following Contracts to which any member of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company Group is a party, or any is otherwise bound (all Contracts listed or otherwise required to be listed on Section 3.13(a) of its Subsidiaries has any current the Disclosure Schedule, or future rightsotherwise disclosed in Section 3.17(b) of the Disclosure Schedule and all Contracts relating to Intellectual Property set forth in Section 3.14(b) of the Disclosure Schedule, obligations or liabilities or to which and the Company or any of its Subsidiaries or any of their respective properties or assets is subject:Incidental Outbound Licenses, Incidental Inbound Licenses and Standard Employee Invention Agreements, collectively being “Material Contracts”):
(i) Contract all Contracts, proposals or other agreements with any (other than this AgreementA) customer or client that is required requires any Person to be filed by make payments to any member of the Company as a material contract pursuant Group equal to Item 601(b)(10more than Fifty Thousand Dollars ($50,000.00) of Regulation S(including all Contracts with Material Customers) in any twelve-K month period, or (B) supplier or vendor that requires any member of the SEC but is not so filedCompany Group to make payments to any Person equal to more than Fifty Thousand Dollars ($50,000.00) in any twelve-month period (including all Contracts with Material Suppliers);
(ii) indentureall partnership, credit agreement, loan agreement, security agreement, guarantee, note, mortgage joint venture or other evidence agreements relating to the development, support or marketing of Indebtedness or agreement providing for Indebtedness in excess of $100,000any Company Services and Products;
(iii) Contract (other than this Agreement) all Contracts for the sale of any property or assets of its any member of the Company Group or for the grant to any Person of any option, right of first refusal or preferential or similar right to purchase any property or assets after of any member of the Company Group (including such Contracts that relate to the acquisition or disposition of all or any portion of the Business or Equity Securities), in each case in respect of property or assets with a value as of the date hereof in excess of Fifty Thousand Dollars (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice$50,000.00);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent all broker, distributor, dealer, representative, franchise, agency, sales promotion, market research, marketing consulting and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeadvertising Contracts;
(v) all Labor Agreements;
(vi) all Contracts with the Employees, directors, and officers of each member of the Company Group who receive a base annualized compensation equal to or greater than Fifty Thousand Dollars ($50,000.00), including but not limited to any Contract containing covenants binding offer letters, employment or other engagement agreements, severance agreements, retention agreements, change of control agreements, restrictive covenant agreements (including noncompetition or non-solicitation agreements) or similar agreements (other than Contracts listed in Section 3.19(a) of the Disclosure Schedule and other than offer letters, employment agreements and similar engagement agreements for “at will” services that do not provide for severance benefits);
(vii) all Contracts with independent contractors, advisors or consultants (or similar arrangements) or such Persons performing services principally for any member of the Company Group, which (A) either (x) provides for base annualized compensation equal to or greater than Fifty Thousand Dollars ($50,000.00) or (y) may not be terminated by the applicable member of the Company Group upon thirty (30) days or less advance notice and without payment of any penalty or severance, or (B) provides for any grant of any compensation or benefits, or any acceleration of any vesting period, following a change in control of the Company, whether alone or in conjunction with any of its Subsidiaries, or any of their respective Affiliates other event;
(viii) all Contracts relating to Indebtedness (including Parent guarantees);
(ix) all Contracts pursuant to which current Employees and its Affiliates after former employees of any member of the Effective TimeCompany Group assigned to the applicable Company Group member any ownership interest and right they may have had in the Owned IP or Intellectual Property Registrations (other than Standard Employee Invention Agreements);
(x) all Contracts with any Governmental Authority;
(xi) all Contracts that materially restricts limit or purport to limit the ability of any member of the Company or any of its Subsidiaries or such Affiliate Group to compete in any business, line of business or with any Person or in any geographic areaarea or during any period of time, except for including any such Contract that may be canceled without penalty by Contracts which contain non-competition, non-solicitation, most-favored nations pricing, exclusivity, minimum volume requirement, guaranteed pricing or other similar restrictive provisions restricting the operations of any member of the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement Group in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contractway;
(xii) all Contracts with any Company IP Agreements other than (A) Shrink-Wrap Licenses Material Customer or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; andMaterial Supplier;
(xiii) except as contemplated by the proposed transaction, all Contracts relating to the acquisition of any business (whether by merger, sale of equity, sale of assets or otherwise) or Equity Securities of any other Person during the past three (3) years or pursuant to which any member of the Company Group has any material outstanding obligation or Liability;
(xiv) all Contracts under which any member of the Company Group is a lessor or lessee of any tangible personal property, in each case, involving annual rental payments in excess of Twenty-Five Thousand Dollars ($25,000);
(xv) all Contracts, including Contracts with any Governmental Authorities, that are settlements, conciliations, or similar agreements pursuant to which any member of the Company Group will have any outstanding obligations (other than customary confidentiality obligations) after the date of this Agreement; or
(xvi) all Contracts with any current officer, purchase orders in the ordinary course director or manager of business consistent with past practice, agreements between any member of the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company Group or any Affiliates of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses Company Group member (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not other than as set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract3.13(a)(vi)).”
(b) True and correct in all material respects copies of each The Company Material Contract have been has heretofore made available to Parent or publicly filed Buyer true and correct copies of all Material Contracts, together with all material amendments, exhibits, attachments and waivers thereto. Each Material Contract is valid and binding on the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each member of the Company Group that is a party to such Material Contracts Contract in accordance with its terms and (assuming due authorization, execution and delivery by the counterparty thereto) is in full force and effect, and is the valid, binding and enforceable obligation . No member of the Company and its SubsidiariesGroup is, and nor is, to the Knowledge Company’s Knowledge, any other party thereto, in breach of or default under any Material Contract. No member of the Company Group has, nor has, to the Company’s Knowledge, of the any other parties party thereto, subject provided or received any written notice of any intention to terminate or not renew any Material Contract. To the General Enforceability ExceptionsCompany’s Knowledge, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (no event or circumstance has occurred that, with notice or without the 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 giving acceleration or other changes of noticeany right or obligation or the loss of any benefit thereunder. There are no disputes pending, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company’s Knowledge, no party has threatened to terminate, under any Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Agrify Corp), Membership Interest Purchase Agreement (Agrify Corp)
Material Contracts. (a) Section 3.9(a) 2.14 of the Company Disclosure Letter Schedule sets forth a list of, and the Company has made available to Parent, true, correct and complete copies of, each written contract, agreement, commitment, arrangement, lease, license, permit or plan and correct list each other instrument to which the Company is a party or by which the Company is bound as of the date of this Agreementhereof (each, excluding any Contract that a “Company Material Contract”) that:
(xi) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(athe Company Financials for the year ended December 31, 2011;
(ii) would be required to be disclosed if the Company were a reporting company under which the Exchange Act;
(iii) contains covenants that materially limit the ability of the Company (or which, following the consummation of the Merger, could materially restrict the ability of the Surviving Company or any of its Subsidiaries has affiliates): (A) to compete in any current line of business or future rights, obligations with any Person or liabilities in any geographic area or to which the Company sell, supply, price, develop or distribute any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventoryservice, product or obsolete equipment asset, including any non-competition covenants, exclusivity restrictions, rights of first refusal or most-favored pricing clauses or (B) to purchase or acquire an interest in any other entity, except, in each case, for any such contract that may be canceled without any penalty or other liability to the ordinary course Company upon notice of business consistent with past practice)60 days or less;
(iv) settlement involves any joint venture, partnership, limited liability or other similar agreement or similar Contract with a Governmental Entity (A) involving future performance by arrangement relating to the Company formation, creation, operation, management or control of any of its Subsidiaries partnership or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) joint venture that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiariesbusiness of the Company, taken as a whole;
(v) involves any Contract containing covenants binding upon the Companyexchange 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 its Subsidiariesany kind or nature whatsoever, whether tangible or any of their respective Affiliates (intangible, including Parent currencies, interest rates, foreign currency and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessindices;
(vi) relates to Indebtedness (whether incurred, assumed, guaranteed or secured by any Contract with respect to a joint venture or partnership formed under the laws asset) having an outstanding principal amount in excess of any applicable jurisdiction$100,000;
(vii) any Contract that would prevent or materially delay was entered into by the Company from performing its obligations under this Agreement and has not yet been consummated, and involves the acquisition or disposition, directly or indirectly (by merger or otherwise), of a substantial amount of the assets or capital stock or other equity interests of another Person, other than the acquisition or disposition of assets in any material respectthe ordinary course of business;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material by its terms calls for aggregate payments by the Company under such contract of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementmore than $100,000;
(ix) any Contract that contains any exclusivity rights is a “repo” contract, agreement, understanding or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)arrangement;
(x) with respect to any Government Contract;
material agreement for the acquisition or disposition, directly or indirectly (xi) any Related Party Contract;
(xii) any by merger or otherwise), of a substantial amount of the assets or capital stock or other equity interests of another Person, pursuant to which the Company IP Agreements other than has: (A) Shrink-Wrap Licenses any continuing indemnification obligations or (B) Contracts including nonany “earn-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnoutout” or other contingent payment obligations;
(xi) involves any managers, directors, executive officers or key employees of the Company that would reasonably cannot be expected to result in the receipt or making cancelled by the Company within 60 days’ notice without liability, penalty or any of its Subsidiaries of payments in premium;
(xii) obligates the future Company to provide indemnification or a guarantee in excess of $100,000 per annum 100,000;
(xiii) obligates the Company to make any capital commitment or $500,000 during capital expenditure (including pursuant to any joint venture);
(xiv) relates to the life development, ownership, licensing or use of any Intellectual Property material to the business of the Company, other than “shrink wrap,” “click wrap,” and “off the shelf” software agreements and other agreements for software commercially available on reasonable terms to the public generally (collectively, “Off-the-Shelf Software Agreements”); or
(xv) provides for any confidentiality or standstill arrangements.
(b) With respect to each Company Material Contract. Each such Contract described in clauses : (i) – each Company Material Contract is legal, valid, binding and enforceable in all material respects against the Company and, to the Company’s knowledge, the other party thereto, and in full force and effect (xiiiexcept as such enforcement may be limited by the Enforceability Exceptions); (ii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language except as set forth in Section 3.9(a)), whether or not set forth on Section 3.9(a) 2.6 of the Company Disclosure LetterSchedule, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies the consummation of each the transactions contemplated by this Agreement will not affect the terms, validity or enforceability of such Company Material Contract have been made available to Parent or publicly filed with against the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Surviving Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge Company’s knowledge, the other party thereto; (iii) the Company is not in breach or default in any material respect, and no event has occurred which, with the passage of time or giving of notice or both, would constitute such a breach or default by the Company, no or permit termination or acceleration by the other party is) in default party, under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder ; and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge Company’s knowledge, no other party to any Company Material Contract is in breach or default in any material respect, and no event has occurred which, with the passage of time or giving of notice or both, would constitute such a breach or default by such other party, or permit termination or acceleration by the Company, no party has threatened to terminate, any under such Company Material Contract.
Appears in 2 contracts
Sources: Agreement and Plan of Reorganization (Bimini Capital Management, Inc.), Merger Agreement (FlatWorld Acquisition Corp.)
Material Contracts. (a) Section 3.9(a3.7(a) of the Company Data443 Disclosure Letter Schedules sets forth a complete and correct list of the following Contracts to which a Group Company is, as of the date of this Agreement, excluding any a party (each Contract required to be set forth on Section 3.7(a) of Data443 Disclosure Schedules, together with each of the Contracts entered into after the date of this Agreement that (xwould be required to be set forth on Section 3.7(a) is or relates to a Company Plan, (y) relates exclusively of Data443 Disclosure Schedules if entered into prior to the BBGS Business or (z) is filed as an exhibit to any Company SEC Documentexecution and delivery of this Agreement, of each Contract described in this Section 3.9(a) under which collectively, the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) any Contract relating to Indebtedness of any Group Company or to the placing of a Lien (other than this Agreementany Permitted Lien) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) on any assets or properties of Regulation S-K of the SEC but is not so filedany Group Company;
(ii) indentureany Contract under which any Group Company is lessee of or holds or operates, credit agreementin each case, loan agreementany tangible property (other than real property), security agreementowned by any other Person;
(iii) any Contract under which any Group Company is lessor of or permits any third party to hold or operate, guaranteein each case, noteany tangible property (other than real property), mortgage owned or controlled by such Group Company;
(iv) any (A) joint venture, profit-sharing, partnership, collaboration, co- promotion, commercialization or research or development Contract, and (B) any Contract with respect to Data443 Licensed Intellectual Property (other evidence than any Contract of Indebtedness the type described in clauses (A) through (C) of Section 3.13 (c));
(v) any Contract that (A) limits or agreement providing for Indebtedness purports to limit the freedom of any Group Company to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material respect, the operations of Parent or any of its Affiliates after the Closing, (B) contains any exclusivity, “most favored nation” or similar provisions, obligations or restrictions or (C) contains any other provisions restricting or purporting to restrict the ability of any Group Company to sell, manufacture, develop, commercialize, test or research products or services, directly or indirectly through third parties, or to solicit any potential employee or customer in any material respect or that would so limit or purports to limit Parent or any of its Affiliates after the Closing;
(vi) any Contract requiring any future capital commitment or capital expenditure (or series of capital expenditures) by any Group Company in an amount in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent requiring any Group Company to guarantee the Liabilities of any Person (other than Data443 or materially delay a Subsidiary thereof) or pursuant to which any Person (other than Data443 or a Subsidiary) has guaranteed the Company from performing its obligations under this Agreement in any material respectLiabilities of a Group Company;
(viii) any ContractContract under which any Group Company has, excluding directly or indirectly, made or agreed to make any purchase order or similar documentation that does not contain material terms of the relationship between the partiesloan, that is (A) a Material Customer Agreementadvance, or (B) a Material Supplier Agreementassignment of payment to any Person or made any capital contribution to, or other investment in, any Person;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material required to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)be disclosed on Section 3.19 of Data443 Disclosure Schedules;
(x) any Government ContractContract with any Person (A) pursuant to which any Group Company (or Parent or any of its Affiliates after the Closing) may be required to pay milestones, royalties or other contingent payments based on any research, testing, development, regulatory filings or approval, sale, distribution, commercial manufacture or other similar occurrences, developments, activities or events or (B) under which any Group Company grants to any Person any right of first refusal, right of first negotiation, option to purchase, option to license or any other similar rights with respect to any Company Product, service of any Group Company or any Intellectual Property Rights;
(xi) any Related Party ContractContract for the disposition of any portion of the assets or business of any Group Company or for the acquisition by any Group Company of the assets or business of any other Person (other than acquisitions or dispositions made in the ordinary course of business), or under which any Group Company has any continuing obligation with respect to an “earn-out”, contingent purchase price or other contingent or deferred payment obligation;
(xii) any Company IP Agreements other than settlement, conciliation or similar Contract (A) Shrink-Wrap Licenses or the performance of which would be reasonably likely to involve any payments after the date of this Agreement, (B) Contracts including with a Governmental Entity or (C) that imposes or is reasonably likely to impose, at any time in the future, any material, non-exclusive licenses monetary obligations on any Group Company (or other non-exclusive grants by Parent or any of its Affiliates after the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its SubsidiariesClosing); and
(xiii) other any Contract with potential or actual referral sources to which a Group Company is a party;
(xiv) any Contracts providing for remuneration to a physician (other than this Agreementor such physician’s immediate family member, purchase orders in each as defined by the ordinary course of business consistent with past practice, agreements between S▇▇▇▇ Law) who refers designated health services (as defined by the Company and any of its wholly owned Subsidiaries or between S▇▇▇▇ Law) to any of the Company’s wholly owned SubsidiariesGroup Companies;
(xv) that contain obligations any Contract between a Group Company and a third-party payor, including health insurers and employer health plans;
(including “earnout” xvi) any employment or consulting Contract with any officer, director, employee, individual independent contractor or other contingent payment obligationsservice provider providing for an annual compensation in excess of $100,000;
(xvii) that would reasonably be expected any Contract providing for a cash bonus, equity award, or other compensation payable or accruing to result any officer, director, employee, individual independent contractor or other service provider of a Group Company in the receipt or making by the event of a change-of-control of any Group Company or the termination of employment of any officer, director, employee, individual independent contractor or other service provider of its Subsidiaries a Group Company;
(xviii) any collective bargaining agreement or other Contract with any labor union; and
(xix) any other Contract the performance of which requires either (A) annual payments in the future to or from any Group Company in excess of $100,000 per annum or (B) aggregate payments to or from any Group Company in excess of $500,000 during 1,000,000 over the life of the Contract. Each such Contract described agreement and, in clauses each case, that is not terminable by the applicable Group Company without penalty upon less than thirty (30) days’ prior written notice.
(i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Each Material Contract have been made available to Parent or publicly filed with is valid and binding on the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a applicable Group Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge knowledge of Data443, the Companycounterparty thereto, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts and is in full force and effect, effect and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iiiii) the applicable Group Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge knowledge of Data443, the Companycounterparties thereto are not in breach of, no party has threatened to terminateor default under, any Company Material Contract.
Appears in 2 contracts
Sources: Business Combination Agreement (Data443 Risk Mitigation, Inc.), Business Combination Agreement (Four Leaf Acquisition Corp)
Material Contracts. (a) Section 3.9(a3.7(a) of the Company Disclosure Letter Schedules sets forth a complete and correct list of the following Contracts to which a Group Company is, as of the date of this Agreement, excluding any a party (each Contract required to be set forth on Section 3.7(a) of the Company Disclosure Schedules, together with each Contract entered into after the date of this Agreement that (xwould be required to be set forth on Section 3.7(a) is or relates to a of the Company Plan, (y) relates exclusively Disclosure Schedules if entered into prior to the BBGS Business or (z) is filed as an exhibit to any Company SEC Documentexecution and delivery of this Agreement, of each Contract described in this Section 3.9(a) under which collectively, the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) any Contract relating to Indebtedness of any Group Company in excess of $500,000 or to the placing of a Lien (other than this Agreementa Permitted Lien) that is required to be filed by the Company as a on any material contract pursuant to Item 601(b)(10) assets or properties of Regulation S-K of the SEC but is not so filedany Group Company;
(ii) indentureany Contract under which any Group Company is lessee of or holds or operates, credit agreementin each case, loan agreementany tangible property (other than real property), security agreementowned by any other Person, guarantee, note, mortgage or other evidence of Indebtedness except for any lease or agreement providing for Indebtedness in excess of under which the aggregate annual rental payments do not exceed $100,00050,000;
(iii) any Contract under which any Group Company is lessor of or permits any third party to hold or operate, in each case, any tangible property (other than this Agreement) real property), owned or controlled by such Group Company, except for any lease or management agreement under which the sale of any of its assets after the date hereof (other than sales of inventory, product annual rental payments or obsolete equipment in the ordinary course of business consistent with past practice)management fee payments do not exceed $25,000;
(iv) settlement agreement any corporate joint venture, profit-sharing, partnership or other similar Contract with a Governmental Entity (A) involving future performance pertaining to more than one particular site operated by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective TimeGroup), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) (A) any Contract containing covenants binding upon that (1) limits or purports to limit, in any material respect, the Company, freedom of any of its Subsidiaries, Group Company to engage or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic areaarea or that would so limit or purport to limit, except for in any such Contract that may be canceled without penalty by material respect, the operations of any Group Company (including Bannix or any of its Subsidiaries upon notice their respective Affiliates after the Closing) or (2) contains any exclusivity, “most favored nation” or similar provisions, obligations or restrictions, or (B) any Contract, other than leases for real property, that contains any other provisions restricting or purporting to restrict the ability of 60 days any Group Company to sell or lessdevelop, directly or indirectly through third parties, or to solicit any potential employee or customer in any material respect or that would so limit or purports to limit, in any material respect, any Group Company (including Bannix or any of their respective Affiliates after the Closing);
(vi) any Contract with respect to a joint venture Contract, other than leases for real property, requiring any future capital commitment or partnership formed under capital expenditure (or series of capital expenditures) by any Group Company in an amount in excess of (A) $50,000 annually or (B) $100,0000 over the laws life of any applicable jurisdictionthe agreement;
(vii) any Contract that would prevent or materially delay requiring any Group Company to guarantee the Liabilities of any Person (other than the Company from performing its obligations under this Agreement or a Subsidiary) or pursuant to which any Person (other than the Company or a Subsidiary) has guaranteed the Liabilities of a Group Company, in any material respecteach case in excess of $50,000;
(viii) any ContractContract under which any Group Company has, excluding directly or indirectly, made or agreed to make any purchase order or similar documentation that does not contain material terms of the relationship between the partiesloan, that is (A) a Material Customer Agreementadvance, or assignment of payment to any Person (Bother than the Company or a Subsidiary) or made any capital contribution to, or other investment in, any Person (other than the Company or a Material Supplier AgreementSubsidiary), in each case in excess of $50,000;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material required to be disclosed on Section 3.19 of the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)Disclosure Schedules;
(x) any Government Contract, other than leases for real property, with any Person (A) pursuant to which any Group Company (including Bannix or any of their respective Affiliates after the Closing) may be required to pay “earn-out”, milestones, royalties or other contingent payments or (B) under which any Group Company grants to any Person any right of first refusal, right of first negotiation, option to purchase, option to license or any other similar rights with respect to any Company Product or any Intellectual Property Rights;
(xi) any Related Party ContractCBA, or any Contract (A) governing the terms of, or otherwise related to, the employment, engagement or services of any current director, manager, officer, employee, worker, individual independent contractor or other service provider of a Group Company whose annual base salary (or, in the case of an independent contractor, annual base compensation) is in excess of $25,000, (B) with a temporary or leasing agency, labor contractor or professional employer organization (“PEO”), or (C) providing for any Change of Control Payment of the type described in clause (a) of the definition thereof;
(xii) any Contract for the disposition of any portion of the assets or business of any Group Company IP Agreements or for the acquisition by any Group Company of the assets or business of any other Person (other than (A) Shrink-Wrap Licenses acquisitions or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into dispositions made in the ordinary course of business consistent business), or under which any Group Company has any continuing obligation with past practice with customers of the Company respect to an “earn-out”, contingent purchase price or its Subsidiaries; andother contingent or deferred payment obligation;
(xiii) other Contracts any settlement, conciliation or similar Contract (other than A) the performance of which would be reasonably likely to involve payment in excess of $25,000 after the date of this Agreement, purchase orders (B) with a Governmental Entity and of a value in excess of $25,000 or (C) that imposes or is reasonably likely to impose, at any time in the ordinary course of business consistent with past practicefuture, agreements between the any material, non-monetary obligations on any Group Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company Bannix or any of its Subsidiaries their respective Affiliates after the Closing);
(xiv) any other Contract, other than leases for real property, the performance of which requires either (A) annual payments in the future to or from any Group Company in excess of $100,000 per annum or (B) aggregate payments to or from any Group Company in excess of $500,000 during 250,000 over the life of the Contract. Each such agreement and, in each case, that is not terminable by the applicable Group Company without penalty upon less than thirty (30) days’ prior written notice;
(xv) any (A) license, royalty, indemnification, covenant not to sue, escrow, co-existence, concurrent use, consent to use or other Contract relating to any Intellectual Property Rights of a value in excess of $25,000 per annum (including any Contracts relating to the licensing of Intellectual Property Rights by any Group Company to a Third Party or by a Third Party to any Group Company) and (B) other Contracts of a value in excess of $25,000 per annum affecting any Group Company’s ability to own, enforce, use, license or disclose any Intellectual Property Rights or providing for the development or, acquisition of any Intellectual Property Rights (including any Data), other than Off-the-Shelf-Software licenses; and
(xvi) any legally binding commitment to enter into any Contract of the type described in clauses subsections (i) – through (xiii) (that is not excluded pursuant to clause (x) or (yxv) of this Section 3.7(a).
(i) Each Material Contract is valid and binding on the lead-applicable Group Company and, to the Company’s knowledge, the counterparties thereto, and is in language full force and effect and enforceable in Section 3.9(a)accordance with its terms against such Group Company and, to the Company’s knowledge, the counterparties thereto (subject to applicable bankruptcy, insolvency, reorganization, moratorium or other Laws affecting generally the enforcement of creditors’ rights and subject to general principles of equity), whether (ii) the applicable Group Company and, to the Company’s knowledge, the counterparties thereto are not in material breach of, or not set forth on Section 3.9(a) of the Company Disclosure Letterdefault under, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company any Material Contract have been made available to Parent or publicly filed with the SEC prior and (iii) to the date hereof. Except as Company’s knowledge, no event has occurred that (with or without due notice or lapse of time or both) would not reasonably be expected result in a breach of, or default under, any Material Contract by the applicable Group Company or, to havethe Company’s knowledge, the counterparties thereto that would be, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, material to the Knowledge Group Companies, taken as a whole. No Group Company has received written notice of the Companyintention of any counterparty to any Material Contract to cancel, no other party is) terminate or modify in default under any Company material respect the terms of any such Material Contract, (ii) each or materially accelerate the obligations of any Group Company thereunder. The Company has made available to Bannix true and complete copies of all Material Contracts in effect as of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contracthereof.
Appears in 2 contracts
Sources: Business Combination Agreement (Bannix Acquisition Corp.), Business Combination Agreement (Bannix Acquisition Corp.)
Material Contracts. (a) Section 3.9(aSchedule 4.12(a) of the Company Disclosure Letter sets forth a true, correct and complete list of, and the Company has made available to SPAC (including written summaries of oral Contracts), true, correct list as of the date of this Agreementand complete copies of, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under to which the any LLP Company is a party or by which any LLP Company, or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectare bound (each Contract required to be set forth on Schedule 4.12(a), a “Company Material Contract”) that:
(i) Contract contains covenants that limit in any material respect the ability of any LLP Company (A) to compete in any line of business or with any Person or in any geographic area or to sell, or provide any service or product or solicit any Person, including any non-competition covenants, employee and customer non-solicit covenants, exclusivity restrictions, rights of first refusal or most-favored pricing clauses or (B) to purchase or acquire an interest in any other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedPerson;
(ii) indenturerelates to the formation, credit agreementcreation, loan agreementoperation, security agreementmanagement or control of any joint venture, guaranteeprofit-sharing, notepartnership, mortgage limited liability company or other evidence similar agreement or arrangement relating to the formation, creation, operation, management or control of Indebtedness any partnership or agreement providing for Indebtedness in excess of $100,000joint venture;
(iii) Contract involves any 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;
(iv) evidences Indebtedness (whether incurred, assumed, guaranteed or secured by any asset) of any LLP Company having an outstanding principal amount in excess of $250,000;
(v) involves the acquisition or disposition, directly or indirectly (by merger or otherwise), of assets with an aggregate value in excess of $250,000 (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the shares or other equity interests of any LLP Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessanother Person;
(vi) relates to any Contract merger, consolidation or other business combination with respect to a joint venture any other Person or partnership formed under the laws acquisition or disposition of any applicable jurisdictionother entity or its business or material assets or the sale of any LLP Company, its business or material assets;
(vii) any by its terms, individually or with all related Contracts, calls for aggregate payments or receipts by the LLP Companies under such Contract that would prevent or materially delay Contracts of at least $250,000 per year or $500,000 in the Company from performing its obligations under this Agreement in any material respectaggregate;
(viii) is with any Contract, excluding any purchase order Top Customer or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier AgreementTop Vendor;
(ix) any Contract obligates the LLP Companies to provide continuing indemnification (excluding Contracts executed principally with respect to another subject matter that contains any exclusivity rights contain, as part thereof, customary indemnification provisions) or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a wholeguarantee of obligations of a third party, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates in either case, after the Effective Time)date hereof in excess of $250,000;
(x) is between any Government Contract;
(xi) LLP Company and any directors, officers or employees of an LLP Company, or any Related Party Contract;
Person (xii) any Company IP Agreements other than (A) Shrinkat-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company will employment, assignment of rights in, to or under Company Intellectual Property or confidentiality arrangements with employees entered into in the ordinary course of business business, consistent with past practice with customers practice), including all non-competition, severance and indemnification agreements;
(xi) obligates the LLP Companies to make any capital commitment or expenditure in excess of $250,000 (including pursuant to any joint venture);
(xii) relates to a material settlement entered into within three (3) years prior to the date of this Agreement or under which any LLP Company or its Subsidiaries; andhas outstanding obligations (other than customary confidentiality obligations);
(xiii) other Contracts provides another Person (other than this Agreementanother LLP Company or any manager, purchase orders in director or officer of any LLP Company) with a power of attorney; or
(xiv) is otherwise material to any LLP Company and outside of the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract not described in clauses (i) – through (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of With respect to each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, Contract: (i) neither such Company Material Contract is valid and binding and enforceable in all respects against the LLP Company nor any of its Subsidiaries is (party thereto and, to the Knowledge of the Company, no each other party is) in default under any Company Material Contractthereto, (ii) each of the Company Material Contracts and is in full force and effecteffect (except, and is in each case, as such enforcement may be limited by the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, ); (iiiii) the no LLP Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) is in breach thereunder and (iv) neither the Company nor or default, in any of its Subsidiaries has received any notice of termination with respect tomaterial respect, and, to the Knowledge of the Company, no event has occurred that with the passage of time or giving of notice or both would constitute a material breach or default by any LLP Company, or permit termination or acceleration by the other party thereto, under such Company Material Contract; (iii) to the Knowledge of the Company, no other party to such Company Material Contract is in breach or default in any material respect, and no event has threatened occurred that with the passage of time or giving of notice or both would constitute such a material breach or default by such other party, or permit termination or acceleration by any LLP Company, under such Company Material Contract; (iv) no LLP Company has received written or, to terminatethe Knowledge of the Company, oral notice of an intention by any party to any such Company Material Contract to terminate such Company Material Contract or amend the terms thereof, other than modifications in the ordinary course of business that do not adversely affect the LLP Companies, taken as a whole, in any material respect; and (v) no LLP Company has waived any material rights under any such Company Material Contract.
Appears in 2 contracts
Sources: Business Combination Agreement (Two), Business Combination Agreement (Two)
Material Contracts. (a) Except as set forth in Section 3.9(a3.08(a) of the Disclosure Schedules, neither the Company nor any of its Subsidiaries is party to or otherwise bound by:
(i) any Contract that provides for the payment to or from the Company or any of its Subsidiaries of more than Five Thousand U.S. Dollars ($5,000) per year (other than any Contract described below in this Section 3.08);
(ii) any Contract that requires the Company or any of its Subsidiaries to purchase its total requirements of any product or service from a Third Party or that contain “take or pay” provisions;
(iii) any Contract that provides for the indemnification by the Company of any Person or the assumption of any environmental or other Liability of any Person (other than such customary indemnification and assumption of Liability provisions as are present in commercial agreements with customer and vendors entered into in the ordinary course of business);
(iv) any merger, acquisition, consolidation, sale or other business combination or divestiture transaction Contracts;
(v) any broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vi) other than in the ordinary course of business with regard to employees located outside of the United States whose employment agreements contain termination provisions required by applicable Law, any employment, change in control, severance or retention agreement for the benefit of employees that is not terminable by the Company or any of its Subsidiaries, as applicable, at will and without Liability;
(vii) (i) any Contract relating to the Indebtedness (including, without limitation, guarantees) of the Company Disclosure Letter sets forth or any of its Subsidiaries and (ii) any Indebtedness relating to deferred revenue whether or not pursuant to a complete and correct list as Contract;
(viii) any Contract with any Governmental Authority;
(ix) any obligation which purports to limit or restrict in any respect (A) the ability of the date Company or any of this Agreementits Subsidiaries to solicit customers or employees, excluding or (B) the manner in which, or the localities in which, all or any portion of the business and operations of the Company or any of its Subsidiaries may be conducted;
(x) any Contract that provides for any joint venture, partnership or similar arrangement, including any share of revenues, profits, losses, costs or liabilities;
(xxi) any Contract with its Affiliates (other than in the ordinary course of business);
(xii) any collective bargaining agreements or Contracts with any Union;
(xiii) any Contract with a Material Supplier;
(xiv) any agreement pursuant to which any other party is granted exclusive rights or relates to a Company Plan, (y) relates exclusively to the BBGS Business “most favored party” rights of any type or (z) is filed as an exhibit scope with respect to any products, technology, intellectual property or business of the Company SEC Documentor any of its Subsidiaries, or containing any non-competition covenants restricting the business activities of each the Company or any of its Subsidiaries;
(xv) any Contract described in this Section 3.9(awith a Material Customer;
(xvi) any Real Property Lease;
(xvii) any lease of personal property;
(xviii) any guarantee of the obligations of customers, suppliers, officers, directors, employees, Affiliates or other third parties;
(xix) any Contract granting an Encumbrance (other than Permitted Encumbrances) upon any of the property or assets of the Company or any of its Subsidiaries other than Encumbrances on Intellectual Property;
(xx) any Contract under which the Company or any of its Subsidiaries has made advances or loans to any current or future rights, obligations or liabilities or other Person;
(xxi) any settlement agreement;
(xxii) any Contract pursuant to which rights of any Third Party are triggered or become exercisable as a result of the execution of this Agreement, the other Transaction Documents or the consummation of the transactions contemplated hereunder or thereunder, either alone or in combination with any other event;
(xxiii) any confidentiality, secrecy or non-disclosure Contract other than any such Contract entered into by the Company or any of its Subsidiaries (A) in connection with this Agreement or any of their respective properties or assets is subject:
(iB) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);; and
(ivxxiv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance any power of attorney granted by the Company or any of its Subsidiaries (all such Contracts disclosed, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)required to be disclosed, in any such caseresponse to clauses (i) through (xxiii) above, which is material to the Company and its Subsidiaries, taken as a whole;“Material Contracts”).
(vb) any Each Material Contract containing covenants is valid and binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to on the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of Company’s Knowledge, the Company, no other party is) parties thereto in default under any Company Material Contract, (ii) each of the Company Material Contracts accordance with its terms and is in full force and effect. Neither the Company nor any Subsidiary, nor, to the Company’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) or has provided or received any notice of any intention to terminate, any Material Contract. To the Company’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. Complete and is correct copies of each Material Contract (including all modifications, amendments and supplements thereto and written waivers thereunder) have been made available to Parent. There are no oral waivers under the validBoustead Agreement, binding and enforceable obligation of any Contract for employment between the Company and its Subsidiaries, and to the Knowledge an employee of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts any contract between an Equityholder and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (OncoCyte Corp), Merger Agreement (OncoCyte Corp)
Material Contracts. (ai) Section 3.9(a) Seller has provided to Buyer true and correct copies of the following agreements (each a “Material Contract”) to which the Company Disclosure Letter sets forth is a complete and correct list as party:
(A) any agreement for the purchase or sale of products or for the date furnishing or receipt of this Agreement, excluding any Contract that services (x1) is or relates to a Company Plan, (y) relates exclusively to which involves more than the BBGS Business sum of $10,000 or (z2) is filed as an exhibit in which the Company has granted “most favored nation” pricing provisions or marketing or distribution rights relating to any Company SEC Documentservices, products or territory or has agreed to purchase a minimum quantity of each Contract described in this Section 3.9(agoods or services or has agreed to purchase goods or services exclusively from a certain party;
(B) any agreement concerning the establishment or operation of a partnership, joint venture or limited liability company;
(C) any agreement under which the Company has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) indebtedness (including capitalized lease obligations) or under which it has imposed (or may impose) any Encumbrance on any of its Subsidiaries has assets, tangible or intangible (excluding indebtedness and Encumbrances being paid off, terminated or otherwise satisfied in connection with the Closing);
(D) any current agreement for the disposition of any significant portion of the assets or future rights, obligations or liabilities or to which business of the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment products in the ordinary course Ordinary Course of Business) or any agreement for the acquisition of the assets or business consistent with past practice);of any other entity (other than purchases of inventory or components in the Ordinary Course of Business);
(ivE) settlement any agreement concerning confidentiality or non-solicitation;
(F) any employment agreement, consulting agreement, severance agreement (or agreement that includes provisions for the payment of severance) or retention agreement;
(G) any agreement involving any current director, manager, officer, shareholder or member of the Company;
(H) any lease or agreement under which the Company is the lessee of, or holds or operates, any personal property owned by any other party, for which the annual rental exceeds $15,000;
(I) any agreement that prohibits the Company from freely engaging in business anywhere in the world;
(J) any distributor, sales representative, franchise or similar Contract with agreement to which the Company is a Governmental Entity party or by which the Company is bound; and
(K) any other agreement (or group of related agreements) either (A) involving future performance more than $50,000 or (B) not entered into in the Ordinary Course of Business and involving more than $10,000. The Company has made available to Buyer a complete and accurate copy of each Material Contract (as amended to date). With respect to each Material Contract, and subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting generally the enforcement of creditors’ rights and subject to general principles of equity: (i) the Material Contract is legal, valid, binding and enforceable and in full force and effect against the Company, to the Knowledge of any Seller or the Company, against each other party thereto; and (ii) the Material Contract will continue to be legal, valid, binding and enforceable and in full force and effect against the Company and against each other party thereto immediately following the Closing in accordance with the terms thereof as in effect immediately prior to the Closing. Neither the Company nor, to the Knowledge of any Seller or the Company, any other party, is in breach or violation of, or default under, any such Material Contract, and no event has occurred, is pending or, to the Knowledge of any Seller or the Company, is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute a breach or default by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any other party under such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the The Company Material Contracts is in full force and effectnot party to any oral contract, and is the validagreement or other arrangement that, binding and enforceable obligation of the Company and its Subsidiariesif reduced to written form, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations would be required to be performed by them to date provide under the Company Material Contracts and are not (with or without the lapse terms of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.Section 3(y)
Appears in 2 contracts
Sources: Share Purchase Agreement (BAIYU Holdings, Inc.), Share Purchase Agreement (TD Holdings, Inc.)
Material Contracts. Except for this Agreement, the Company Ancillary Agreements and other contracts and agreements (ai) Section 3.9(a) set forth on Schedule 3.20 of the Company Disclosure Letter sets forth a complete and correct list Schedule or (ii) filed as exhibits to the Company SEC Documents (collectively, the “Material Contracts”) or (iii) which individually or in the aggregate are not material to Company’s or any of its Subsidiaries’ businesses, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is are a party to or bound by:
(anda) any trust indenture, mortgage, promissory note, loan agreement or other contract for the borrowing of money, any currency exchange, commodities or other hedging arrangement (other than any such arrangement entered into for bona fide hedging purposes) or any leasing transaction of the type required to be capitalized in accordance with Statement of Financial Accounting Standards No. 13 of the Financing Accounting Standards Board;
(b) any contract for capital expenditures in excess of one hundred fifty thousand dollars ($150,000) in the aggregate;
(c) any contract limiting the freedom of Company to engage in any line of business, to acquire any material product or asset from any other Person outside the Knowledge ordinary course of business, to sell any material product or asset outside the ordinary course of business to, or to perform any material service outside the ordinary course of business, or to compete with any other Person (as that term is defined in the Exchange Act);
(d) any contract pursuant to which Company is a lessor of real property or of any machinery, equipment, motor vehicles, office furniture, fixtures or other personal tangible property involving in the case of any such personal property contract more than one hundred thousand dollars ($100,000) over the life of the Companycontract that expires or may be renewed at the option of any Person other than Company so as to expire more than one (1) year after the date of this Agreement;
(e) any material contract with any Person with whom Company does not deal at arm’s length;
(f) any contract which provides for the indemnification of any officer, no director, employee or agent;
(g) any guarantee of indebtedness of any other party isPerson;
(h) in default under any contract with or commitment to any labor union;
(i) any contract or commitment for or relating to the employment of any officer, employee or consultant of Company Material Contractor any other type of contract or understanding with any officer, (ii) each employee or consultant of the Company Material Contracts that is not immediately terminable (or terminable within thirty (30) days or less in full force and effect, and is the valid, binding and enforceable obligation case of the consultants) by Company and its Subsidiaries, and to the Knowledge of the Company, of the without cost or other parties thereto, subject to the General Enforceability Exceptions, liability;
(iiij) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with any joint venture or without the lapse of time partnership contract or the giving of noticeother agreement which has involved, or bothis reasonably expected to involve, a sharing of profits, expenses or losses with any other party; and
(k) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractIP Rights Agreement other than object code licenses of commercial off-the-shelf computer software under shrink-wrap or other non-negotiated agreements having a cost of less than five hundred dollars ($500) per seat or other generally available commercial licenses providing for license fees in an amount less than ten thousand dollars ($10,000).
Appears in 2 contracts
Sources: Merger Agreement (Authorize.Net Holdings, Inc.), Agreement and Plan of Reorganization (Cybersource Corp)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as As of the date of this Agreementhereof, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which neither the Company nor any Subsidiary is a party to or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which bound by (such contracts being the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) Contract (any partnership, joint venture or other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedsimilar agreement or arrangement;
(ii) indentureany agreement entered into on or after January 1, credit agreement2007 relating to the acquisition or disposition of any material business (whether by merger, loan agreementconsolidation, security agreement, guarantee, note, mortgage acquisition or other evidence sale of Indebtedness stock or agreement providing for Indebtedness in excess of $100,000assets or otherwise);
(iii) Contract (other than this Agreement) any agreement for the purchase or sale of services (including service agreements, statements of work and similar agreements), materials, supplies, goods, equipment or other tangible or intangible assets or group of such agreements with any particular Third Party providing for, or that would reasonably be expected to result in, either (A) annual payments by or to the Company and its Subsidiaries of $100,000 or more or (B) aggregate payments by or to the Company and its assets after the date hereof (other than sales Subsidiaries of inventory, product $500,000 or obsolete equipment in the ordinary course of business consistent with past practice)more;
(iv) settlement any agreement relating to indebtedness for borrowed money or similar Contract with a Governmental Entity the deferred purchase price of property (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such either case, which is material to the Company and its Subsidiarieswhether incurred, taken as a wholeassumed, guaranteed or secured by any asset) with an aggregate committed or outstanding principal amount exceeding $100,000;
(v) any Contract agreement containing covenants binding upon the Company, any of its Subsidiaries, provision or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts covenant limiting the ability of the Company or any of its Subsidiaries (or, after the consummation of the Merger, Parent, the Surviving Corporation or such Affiliate any of their respective Subsidiaries) to compete in (A) sell any business, services or with products of or to any other Person or in any geographic arearegion, except for (B) engage in any such Contract that may be canceled without penalty by line of business or (C) compete with or to obtain services or products from any Person or limiting the ability of any Person to provide services or products to the Company or any of its Subsidiaries upon notice (or, after the consummation of 60 days the Merger, Parent, the Surviving Corporation or lessany of their respective Subsidiaries);
(vi) any Contract with respect agreement containing any provision or covenant that binds or purports to a joint venture bind “Affiliates” of the Company or partnership formed under any Subsidiary of the laws Company or that would otherwise bind or purport to bind Parent or any of its Subsidiaries (other than the Company or any applicable jurisdiction;of its Subsidiaries) after the Closing; or
(vii) any Contract that would prevent agreement providing for annual payments of $100,000 or materially delay more or aggregate payments of $500,000 or more containing any provision pursuant to which the Company from performing its obligations under execution, delivery and performance of this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) the consummation of the transactions contemplated hereby, would require any consent or other action by any Person thereunder, constitute a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a wholedefault, or that is material to an event that, with or without notice or lapse of time or both, would constitute a default, thereunder, or cause or permit the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses termination, cancellation, acceleration or other non-exclusive grants by change of any right or obligation or the Company loss of rights in, any benefit to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by which the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractentitled thereunder.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent Except for breaches, violations or publicly filed with the SEC prior to the date hereof. Except as defaults which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Material Contract is valid and in full force and effect and (ii) neither the Company nor any of its Subsidiaries is (andSubsidiaries, nor to the Knowledge of the Company, no ’s knowledge any other party is) in default under to any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effecthas violated any provision of, and is the validor taken any action which, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the notice, lapse of time or the giving of noticetime, or both) in breach thereunder , would constitute a default under the provisions of such Material Contract, and (iv) neither the Company nor any of its Subsidiaries has received any notice of that it has breached, violated or defaulted under, or providing for the termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminateof, any Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Diamond Management & Technology Consultants, Inc.), Merger Agreement (PricewaterhouseCoopers LLP)
Material Contracts. (a) Except as set forth in Section 3.9(a) 4.07 of the Company Disclosure Letter sets forth a complete and correct list as of the date of this AgreementSchedules, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or there are no Contracts to which the Company is a party or any of its Subsidiaries or any of their respective properties or assets by which it is subject:
bound (each, a “Material Contract”) that involve (i) Contract obligations (other than this Agreementcontingent or otherwise) that is required to be filed by the of, or payments to, Company as a material contract pursuant to Item 601(b)(10) in excess of Regulation S-K of the SEC but is not so filed;
US$10,000, (ii) indenturethe license of any patent, credit agreementcopyright, loan agreementtrademark, security agreement, guarantee, note, mortgage trade secret or other evidence of Indebtedness proprietary right to or agreement providing for Indebtedness in excess of $100,000;
from Company, (iii) Contract (other than this Agreement) for the sale of indemnification by Company with respect to any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in person outside the ordinary course of business consistent with past practice);
business, (iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts limitations on the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic areaarea or during any period of time; (v) Company, except for on one hand, and any such Contract that may be canceled without penalty by officer, director, Seller or Key Personnel, on the Company or any of its Subsidiaries upon notice of 60 days or less;
other hand; (vi) requires Company to purchase minimum quantities (or pay any Contract with respect amount for failure to a joint venture purchase any specific quantities) of goods or partnership formed under the laws of any applicable jurisdiction;
services, or contains “most favored customer” or similar pricing arrangements; (vii) provides for a partnership, joint venture, teaming or similar arrangement pursuant to which Company shares in the profits or losses of any Contract that would prevent business with any other Person or materially delay the Company from performing its obligations under this Agreement in is jointly liable with any material respect;
other Person; (viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that pursuant to which Company is (Aa) a Material Customer Agreementlessee or sublessee of or holds, occupies or operates, any real property, (b) a lessor or sublessor of, or makes available for use, occupancy or operation by any Person, any real property or (c) a lessee or sublessee of any personal property; (ix) creates an Encumbrance on any Company Assets or evidences any Indebtedness, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
extends for a term of more than 12 months from the Closing Date (xi) any Related Party Contract;
(xii) any unless terminable by Company IP Agreements other without payment or penalty upon no more than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract60 days’ notice). Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed is valid and binding on the applicable Company in accordance with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts terms and is in full force and effect. Neither Company nor, and is the validto Seller’s knowledge, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the any other parties party thereto, subject to the General Enforceability Exceptions, is in material breach of or default under (iii) the Company and its Subsidiaries have performed all obligations required or is alleged to be performed by them in breach of or default under) or to date under the Company Seller’s knowledge has provided or received any notice of any intention to terminate, any Material Contracts and are not (Contract. No event or circumstance has occurred that, with notice or without the lapse of time or the giving both, would constitute an event of noticedefault under any Material Contract or result in a termination thereof, would require additional guarantors thereof, or both) in breach thereunder would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Buyer has been supplied with a correct and (iv) neither the Company nor any complete copy of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company each Material Contract.
Appears in 2 contracts
Sources: Securities Purchase Agreement (TerrAscend Corp.), Securities Purchase Agreement
Material Contracts. (ai) Except for Contracts set forth in Section 3.9(a3.1(k) of the Company its Disclosure Letter sets forth a complete and correct list Letter, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or neither it nor any of its Subsidiaries has Subsidiaries, nor any current of their respective assets, businesses or future rightsoperations, obligations is a party to, or liabilities is bound or affected by, or receives benefits under, (A) any Contract relating to which the Company borrowing of money by it or any of its Subsidiaries or the guarantee by it or any of their respective properties or assets is subject:
(i) Contract its Subsidiaries of any such obligation (other than this Agreement) that is required Contracts pertaining to be filed by the Company as a material contract pursuant fully- secured repurchase agreements, trade payables and Contracts relating to Item 601(b)(10) of Regulation Sborrowings, deposit-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage takings or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment guarantees made in the ordinary course of business consistent with past practice);
, (ivB) settlement agreement any Contract containing a non-compete or similar Contract with a Governmental Entity (A) involving future performance by client or customer non-solicit requirement or any other provisions that limit the Company ability of it or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts to compete in any respect the operations line of business or conduct with any Person, or that involve any restriction of the Company geographic area in which, or method by which, it or any of its Subsidiaries may carry on its business (other than as may be required by Law or any Governmental Authority) or which requires referrals of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, business or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company requires it or any of its Subsidiaries or such Affiliate Affiliates to compete in any business, or with make available investment opportunities to any Person on a priority, equal or in any geographic areaexclusive basis, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(viC) any Contract with respect to a joint venture or partnership formed under the laws employment of any applicable jurisdiction;
directors, executive officers or employees, or with any consultants that are natural Persons involving the payment of U.S.$500,000 or more per annum, (viiD) any Contract which, upon the execution or delivery of this Agreement or consummation of the transactions contemplated by this Agreement will (either alone or upon the occurrence of any additional acts or events) result in any payment (including severance payment) becoming due from it or any of its Subsidiaries, (E) any Contract that would prevent could reasonably be expected to prohibit, delay or materially delay impair the Company from performing its obligations under this Agreement in consummation of any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the partiesTransactions, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ixF) any Contract (or group of Contracts with the same party (or its Affiliates) involving similar transactions) that contains involves expenditures or receipts by it or any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and of its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company in excess of rights in, to or under Company Intellectual Property U.S.$5,000,000 per year not entered into in the ordinary course of business consistent with past practice practice, (G) any Contract with customers an Affiliate, (H) any Contract that grants any right of first refusal, right of first offer or similar right with respect to the Company sale or other transfer of any material assets, rights or properties of it or its Subsidiaries; and
Subsidiaries or (xiiiI) other Contracts any Contract with any Governmental Authority (other than this Agreement, purchase orders in the ordinary course of business consistent routine or customary Contracts with past practice, agreements between the Company and any self-regulatory body). With respect to each of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them disclosed in its Disclosure Letter pursuant to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.this Section 3.1(k)(i):
Appears in 2 contracts
Sources: Transaction Agreement, Transaction Agreement
Material Contracts. (a) Section 3.9(aSchedule 4.17(a) of the Company Disclosure Letter Letter, together with the lists of exhibits contained in the Company SEC Documents and Schedules 4.10(a) and 4.10(l) listing material Company Plans, sets forth a true and complete and correct list list, as of the date of this Agreement, excluding of:
(i) each “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K under the Exchange Act);
(ii) each contract that provides for the acquisition, disposition, license, use, distribution or outsourcing of assets, services, rights or properties of the Company or any Contract that of its Subsidiaries involving annual payments in excess of $8,000,000, other than contracts in which the applicable acquisition or disposition has been consummated and there are no liabilities of the Company or its Subsidiaries remaining or obligations of the Company or its Subsidiaries ongoing;
(iii) each contract relating to Indebtedness (including commitments with respect thereto) of the Company or any of its Subsidiaries (whether incurred, assumed, guaranteed or secured by any asset) in excess of $5,000,000, other than (x) is agreements solely between or relates to a among the Company Plan, and its Subsidiaries and (y) relates exclusively any notes or loans made by the Company or its Subsidiaries to franchisees;
(iv) each Company Material Real Property Lease;
(v) each contract that is a non-competition contract or other contract that (A) purports to limit in any material respect either the BBGS Business type of business in which the Company or its Subsidiaries (or, after the Effective Time, Parent or its Subsidiaries) may engage or the manner or locations in which any of them may so engage in any business (including any contract containing any area of mutual interest, joint bidding area, joint acquisition area, or non-compete or similar type of provision), (B) could require the disposition of any material assets or line of business of the Company or its Subsidiaries (or, after the Effective Time, Parent or its Subsidiaries) or (zC) is filed prohibits or limits the rights of the Company or any of its Subsidiaries to make, sell or distribute any products or services, or use, transfer or distribute, or enforce any of their rights with respect to, any of their material assets, other than, in each case, as an exhibit may be set forth in any Franchise Agreement;
(vi) each contract involving the pending acquisition or sale of (or option to purchase or sell) any assets or properties of the Company SEC Documentfor which the aggregate consideration (or the fair market value of such consideration, if non-cash) payable to or from the Company or any of its Subsidiaries exceeds $8,000,000;
(vii) each Contract described in this Section 3.9(amaterial partnership, material joint venture or similar material arrangement with a third party, other than with arrangements exclusively among the Company and/or its wholly owned Subsidiaries;
(viii) each Labor Agreement;
(ix) each agreement under which the Company or any of its Subsidiaries has advanced or loaned any current amount of money to any of its officers, directors, employees, Company Agents or future rightsconsultants;
(x) each agreement that contains any “most favored nation” or most favored customer provision, obligations call or liabilities put option, preferential right or rights of first or last offer, negotiation or refusal to which the Company or any of its Subsidiaries or any of their respective properties or assets Affiliates is subject:
(i) Contract (other than this Agreement) subject and that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the business of the Company and its Subsidiaries, taken as a whole;
(v) , except for any Contract containing covenants binding upon agreement in which such provision is solely for the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability benefit of the Company or any of its Subsidiaries;
(xi) each contract (a) pursuant to which the Company or its Subsidiaries grants or receives a license or similar right with respect to any Company Intellectual Property, other than (i) licenses received with respect to commercially available software or information technology services, or (ii) non-exclusive licenses granted to customers, franchisees or service providers in the Ordinary Course or (b) relating to the development of material Intellectual Property (other than agreements with employees or contractors on the Company’s or its Subsidiaries’ standard form of such Affiliate agreements made available to compete Parent) or (c) limiting the Company’s or any of its Subsidiaries’ ability to use, enforce or disclose any Company Owned IP in any business, or with material respect; and
(xii) any Person or contract not otherwise described in any geographic area, except for any such Contract other subsection of this Section 4.17(a) that may be canceled without penalty by obligates the Company or any of its Subsidiaries upon notice to make any future capital investment or capital expenditure outside of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws Ordinary Course and in excess of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement $8,000,000 in any material respect;
twelve (viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship 12)-month period (other than contracts between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective TimeSubsidiaries);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct Collectively, the contracts set forth or required to be set forth in all material respects copies of each Section 4.17(a) are herein referred to as the “Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Contracts.” Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Company Contract is legal, valid, binding and enforceable in accordance with its terms on the Company and each of its Subsidiaries that is a party thereto and, to the knowledge of the Company, each other party thereto, and is in full force and effect, subject, as to enforceability, to Creditors’ Rights, (ii) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in breach or default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effectno event has occurred that, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of noticenotice or both, individually or in the aggregate with other events, would reasonably be expected to result in a breach thereof or default thereunder by the Company or its Subsidiaries, or both) in breach thereunder to the knowledge of the Company, as of the date hereof, any other party thereto and (iviii) there are no disputes pending or, to the knowledge of the Company, threatened with respect to any Company Contract and neither the Company nor any of its Subsidiaries has received any written notice of termination with respect to, and, the intention of any other Person to the Knowledge of the Company, no party has threatened any such Company Contract that such Person intends to terminate, terminate or claim a material breach under any Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Compass, Inc.), Merger Agreement (Anywhere Real Estate Inc.)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as As of the date of this Agreementhereof, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which neither the Company nor any Subsidiary is a party to or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectbound by:
(i) Contract (other than this Agreement) that is required any agreement relating to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage pharmacy benefit administration and management services business owned or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance operated by the Company or any of its Subsidiaries that would reasonably be expected to generate net annualized revenues in an amount in excess of $5 million;
(ii) any material partnership, joint venture or other similar agreement or arrangement;
(iii) any agreement entered into after January 31, 2007 relating to the acquisition or disposition of their respective Affiliates any material business (including Parent and its Affiliates after whether by merger, sale of stock, sale of assets or otherwise);
(iv) any agreement for the Effective Time) purchase or (B) that restricts in any respect the operations sale of materials, supplies, goods, services, equipment or conduct of the Company other assets providing for either annual payments by or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeSubsidiaries of $30 million or more that cannot be terminated on not more than 60 days’ notice without payment by the Company or any Subsidiary of any material penalty;
(v) any Contract agreement 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) with an aggregate committed or outstanding principal amount exceeding $10 million;
(vi) any agreement containing covenants binding upon the Company, any of its Subsidiaries, provision or covenant limiting in any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts material respect the ability of the Company or any of its Subsidiaries (or, after the consummation of the Merger, Parent, the Surviving Corporation or such Affiliate any of their respective Subsidiaries) to compete in (A) sell any business, products or with services of or to any other Person or in any geographic arearegion, except for (B) engage in any such Contract that may be canceled without penalty by line of business or (C) compete with or to obtain products or services from any Person or limiting the ability of any Person to provide products or services to the Company or any of its Subsidiaries upon notice (or, after the consummation of 60 days the Merger, Parent, the Surviving Corporation or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdictiontheir respective Subsidiaries);
(vii) any Contract agreement between the Company or any of its Subsidiaries, on the one hand, and any Affiliate, director or officer (or, to the Company’s knowledge, any of their respective Affiliates), on the other hand in each case of the type and amount that would prevent or materially delay be required to be disclosed in the Company’s annual proxy statement under Item 404 of Regulation S-K under the 1933 Act that has not been previously disclosed in the Company from performing its obligations under this Agreement in any material respect;SEC Documents; or
(viii) any Contractagreement that requires annual payments in excess of $5 million or is otherwise material containing any provision pursuant to which the execution, excluding any purchase order or similar documentation that does not contain material terms delivery and performance of the relationship between the parties, that is (A) a Material Customer this Agreement, or (B) the consummation of the transactions contemplated hereby, would require any consent or other action by any Person thereunder, constitute a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a wholedefault, or that is material to an event that, with or without notice or lapse of time or both, would constitute a default, thereunder, or cause or permit the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses termination, cancellation, acceleration or other non-exclusive grants by change of any right or obligation or the Company loss of rights in, any benefit to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by which the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractentitled thereunder.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent Except for breaches, violations or publicly filed with the SEC prior to the date hereof. Except as defaults which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each contract disclosed or required to be disclosed in Section 5.20 of the Company Disclosure Schedule (each, a “Material Contract”) is valid and in full force and effect and (ii) neither the Company nor any of its Subsidiaries is (andSubsidiaries, nor to the Knowledge of the Company, no ’s knowledge any other party is) in default under to any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effecthas violated any provision of, and is the validor taken any action which, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the notice, lapse of time or the giving of noticetime, or both) in breach thereunder , would constitute a default under the provisions of such Material Contract, and (iv) neither the Company nor any of its Subsidiaries has received any notice of that it has breached, violated or defaulted under, or providing for the termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminateof, any Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (CVS Caremark Corp), Merger Agreement (Longs Drug Stores Corp)
Material Contracts. (a) Section 3.9(aSchedule 2.16(a) of the Company Disclosure Letter sets forth a complete and correct list (with each of such Contracts specifically identified under subsection(s) of such Schedule 2.16(a) that correspond to the Subsection or Subsections of Section 2.16(a) applicable to such Contract) of the following Contracts to which an Acquired Company is a party or by which an Acquired Company is bound as of the date Original Agreement Date (each such Contract whether in effect as of this Agreementthe Original Agreement Date, excluding any Contract that (x) is or relates to if entered into between the Original Agreement Date and the Closing in compliance with Article V, a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contract”):
(i) any Contract (other than this Agreement) that is required to be filed by the Company as with a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedKey Customer or Key Supplier;
(ii) indentureany dealer, credit distributor, referral or similar agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement any Contract providing for Indebtedness the grant of rights to reproduce, license, market, refer or sell Company Products to any other Person or pursuant to which any third parties advertise on any websites operated by an Acquired Company, in each case, other than non-exclusive licenses granted to third party vendors for the limited purpose of providing services to an Acquired Company;
(iii) (A) any joint venture Contract, (B) any Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons and (C) any Contract that involves the payment of royalties to any other Person (other than license fees in respect of Intellectual Property);
(iv) any separation agreement or severance agreement with any current or former employees, in each case, under which an Acquired Company has or had any actual or potential Liability in excess of $100,000;
(iiiv) any Contract for or relating to the employment or service of any director, officer or beneficial owner of more than 1% of the total number of any class of Shares (or of any Equity Interests in a Subsidiary of the Company) or any other type of Contract (other than this AgreementContracts granting Company Options) for the sale of with any of its assets after officers or beneficial owners of more than 1% of the date hereof total number of any class of Shares (other than sales or of inventoryany Equity Interests in a Subsidiary of the Company), product or obsolete equipment in as the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance case may be, that is not immediately terminable by the Company without cost or any Liability of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessless than $25,000;
(vi) any Contract (A) pursuant to which any other party is granted exclusive rights or “most favored party” rights of any type or scope with respect to a joint venture any of the Company Products, Company Intellectual Property or partnership formed under Company Data owned by the laws Company, (B) containing any non-competition covenants or other similar restrictions relating to the Company Products or Company Intellectual Property (excluding agreements entered into with new hires in the ordinary course of business and consistent with past practice) or (C) that materially limits or would materially limit the freedom of an Acquired Company or its successors (including assigns and their respective Affiliates) to (I) engage or participate, or compete with any other Person, in any line of business, market or geographic area with respect to the Company Products or the Company Intellectual Property, or to make use of any applicable jurisdictionCompany Intellectual Property, including any grants by an Acquired Company of exclusive rights or licenses or (II) sell, distribute or manufacture any products or services or to purchase or otherwise obtain any software, components, parts or services;
(vii) any Contract that would prevent standstill or materially delay the similar agreement containing provisions prohibiting a third party from purchasing Equity Interests of an Acquired Company from performing its obligations under this Agreement in any material respector assets of an Acquired Company;
(viii) other than Commercially Available Licenses, each Acquired Company’s licenses to service providers and any Contractconfidentiality, excluding any purchase order secrecy or similar documentation that does not contain material terms non-disclosure Contract entered into by an Acquired Company in the ordinary course of the relationship between the partiesbusiness and consistent with past practice, that all licenses, sublicenses and other Contracts to which an Acquired Company is a party and pursuant to which: (A) a Material Customer Agreementan Acquired Company acquired or is authorized to use any Third-Party Intellectual Property used in the development, marketing or licensing of the Company Products or (B) a Material Supplier Agreementany Person is authorized to use any Company-Owned Intellectual Property;
(ix) any license, sublicense or other Contract that contains pursuant to which an Acquired Company has agreed to any exclusivity rights or “most favored nations” provisions or minimum material restriction on the right of an Acquired Company to use or supply requirements that are material enforce any Company-Owned Intellectual Property or pursuant to the which an Acquired Company and its Subsidiaries taken as a whole, or that is material agrees to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)sell rights in any Company-Owned Intellectual Property;
(x) any Government ContractContract providing for the development of any material software, technology or other Intellectual Property, independently or jointly, either by or for an Acquired Company (other than employee invention assignment agreements and consulting agreements on the Company’s standard form of agreement) (collectively with the Contracts described in Sections 2.16(a)(viii) and 2.16(a)(ix), the “Company Intellectual Property Agreements”);
(xi) any Related Party ContractContracts relating to the membership of, or participation by, an Acquired Company in, or the affiliation of an Acquired Company with, any industry standards group or association;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or any material settlement agreement with respect to any Legal Proceeding, and (B) Contracts including non-exclusive licenses any separation agreement, severance agreement or release with any current or former employees, in each case, under which an Acquired Company has any actual Liability in excess of $250,000;
(xiii) any Contract material to the assets or business of any of the Acquired Companies as currently conducted pursuant to which rights of any third party are triggered or become exercisable as a result of the execution of this Agreement or the consummation of the Share Purchase;
(xiv) any trust indenture, mortgage, promissory note, loan agreement or other non-exclusive grants by 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;
(xv) any Contract or plan (including any stock option, merger and/or stock bonus plan) relating to the sale, issuance, grant, exercise, award, purchase, repurchase or redemption of any Shares or any other Equity Interests of the Company, except for the VSOPs and the Promised Company Options;
(xvi) any Contract of rights inguarantee, surety, support, indemnification (other than pursuant to its standard customer agreements), assumption or under Company Intellectual Property entered into endorsement of, or any similar commitment with respect to, the Liabilities or indebtedness of any other Person (other than an Acquired Company);
(xvii) any Contract for capital expenditures in excess of $100,000 in the ordinary course aggregate;
(xviii) any Contract pursuant to which an Acquired Company is a lessor or lessee of any real property or any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property involving expenditures in excess of $250,000 per annum, and any Real Estate Leases;
(xix) any Contract pursuant to which an Acquired Company has acquired or disposed of a business consistent with past practice with customers or entity, or all or substantially all of the assets of a business or entity, whether by way of merger, consolidation, purchase of stock, purchase of assets, license or otherwise, or any similar Contract pursuant to which an Acquired Company has acquired any material ownership interest in any other Person (other than an Acquired Company);
(xx) other than Contracts relating to the provision of utilities, any material Contract with any Governmental Entity or its Subsidiariesany Contract with a government prime contractor, or higher-tier government subcontractor, including any indefinite delivery/indefinite quantity contract, firm-fixed-price contract, schedule contract, blanket purchase agreement, or task or delivery order (each a “Government Contract”); and
(xiiixxi) any other Contracts Contract not listed in clauses (other than this Agreement, purchase orders i) through (xx) that individually had in the ordinary course of business consistent with past practiceprior twelve-month period, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt have a value or making by the Company or any of its Subsidiaries of payments in the future payment obligation in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract500,000.”
(b) True and correct All Material Contracts are in written form. Each Acquired Company has performed all of the material respects copies of each Company obligations therein required to be performed by it under any Material Contract have been made available to Parent or publicly filed with through the SEC prior to the date hereof. Except Original Agreement Date and as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) Closing Date will have performed all of the material obligations therein required to be performed by it under any Material Contract through the Satisfaction Date. No Acquired Company is alleged in writing to be in default under in respect of any Material Contract to which such Acquired Company Material Contract, (ii) each is a party. Each of the Company Material Contracts is in full force and effect, and is subject only to the valideffect, binding and enforceable obligation if any, of the Enforceability Exceptions. There exists no default or event of default or material breach, with respect to an Acquired Company and its Subsidiaries, and or to the Knowledge knowledge of the Company, of the with respect to any other parties theretocontracting party, subject to the General Enforceability Exceptionsthat, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or boththe lapse of time, would reasonably be expected to (i) become a default or event of default under any Material Contract or (ii) give such other contracting party (A) the right to declare a default or exercise any material remedy under any Material Contract, (B) the right to a material rebate, chargeback, refund, credit, penalty or change in breach thereunder and delivery schedule under any Material Contract, (ivC) neither the right to accelerate the maturity or performance of any material obligation of an Acquired Company nor under any Material Contract or (D) the right to cancel, terminate or modify any Material Contract. As of its Subsidiaries the Original Agreement Date, no Acquired Company has received any notice or other written communication regarding any actual or purported violation or breach of, default under, or intention to cancel or modify any Material Contract. As of termination with respect to, andthe Original Agreement Date, to the Knowledge knowledge of the Company, no party Acquired Company has threatened to terminate, any Company Material ContractLiability for renegotiation of Government Contracts.
Appears in 2 contracts
Sources: Share Purchase Agreement (Applovin Corp), Share Purchase Agreement (Applovin Corp)
Material Contracts. (a) Section 3.9(aSchedule 3.18(a) contains a list of each of the following written Contracts and a description of each of the following oral Contracts to which any of the Company Disclosure Letter sets forth Entities is a complete and correct list as of party (collectively, the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) Contract all Contracts (other than this Agreementthe Leases listed on Schedule 3.8(b)) that is required to be filed Company reasonably anticipates will, in accordance with their terms, involve aggregate payments by any of the Company as a material contract pursuant to Item 601(b)(10Entities of more than $250,000 within the twelve (12) of Regulation S-K of month period following the SEC but is not so fileddate hereof;
(ii) indentureall Contracts that Company reasonably anticipates will, credit agreementin accordance with their terms, loan agreement, security agreement, guarantee, note, mortgage or other evidence involve aggregate payments to any of Indebtedness or agreement providing for Indebtedness in excess the Company Entities of more than $100,000250,000 within the twelve (12) month period following the date hereof;
(iii) any employment Contract (other than this Agreement) for the sale of any director or officer of any of its assets after the Companies or any other written employment, severance, retention, deal bonus, consulting or other Contract with any employee of any of the Companies which will require (or reasonably likely require) the payment of amounts by any of the Companies during the one year period following the date hereof (other than sales in excess of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)$150,000;
(iv) settlement agreement all Contracts that limit or similar Contract with a Governmental Entity (A) involving future performance by purport to limit the Company or ability of any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate Entities to compete in any business, line of business or with any Person or in any geographic areaarea or during any period of time;
(v) all Contracts relating to material Intellectual Property Rights (other than Intellectual Property Rights which are the subject of a license for shrink wrap software, except license for any such Contract that may be canceled without penalty by other “off the Company shelf” software, or any of its Subsidiaries upon notice of 60 days or lessa license for software for which the license fees, royalties, maintenance fees and support fees do not exceed $150,000 on an annual basis);
(vi) all Contracts under which any Contract with respect to a joint venture of the Company Entities has incurred any Indebtedness which is outstanding on the date hereof or partnership formed under the laws has directly or indirectly guaranteed Indebtedness, liabilities or obligations of any applicable jurisdictionPerson (other than any Indebtedness, liabilities or obligations solely by and among the Company Entities);
(vii) any Contract that would prevent contains a put or materially delay similar right pursuant to which any Company Entity could be required to purchase, redeem or otherwise acquire any equity interests (whether exercisable by the Company party holding such right (A) at any time or from performing its obligations under time to time (i.e., a “time-based put”) or (B) as a result of, or in connection with, the execution and delivery of this Agreement in any material respectby the parties hereto or the consummation of the transactions contemplated hereby (i.e., an “event-based put”));
(viii) other than as may be set forth in the Company Entities’ Organizational Documents, any ContractContract that contains a co-sale, excluding any purchase order call, right of first refusal or similar documentation that does not contain material terms right of first offer, with respect to the equity interests of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier AgreementCompany Entities;
(ix) any Contract that Contract, other than the Company Entities’ Organizational Documents, which contains an earn-out, deferred purchase price, or other similar contingent obligation, or contains ongoing indemnification obligations on behalf of any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material Company Entities and, in each case, is related to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)acquisition of any equity interests of any Person;
(x) any Government Contract;other than the Company Entities’ Organizational Documents, all joint venture or partnership agreements; and
(xi) any Related Party Contract;
(xii) any Company IP Agreements all medical director agreements and other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractsimilar agreements.”
(b) True and correct in all material respects copies of Except as set forth on Schedule 3.18(b), each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither is valid and binding on the Company nor any of its Subsidiaries Entity that is (a party thereto and, to Company’s Knowledge, on the Knowledge of the Companyother parties thereto, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts and is in full force and effect, and is the valid, binding and enforceable obligation . Each of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have Entities has performed in all material respects all material obligations required to be performed by them it to date under each Material Contract. Except as set forth on Schedule 3.18(b), none of the Company Material Contracts and are not (with Entities is or without the is alleged to be in material breach of, or material default under, nor is there any event or condition exists which constitutes, or after notice or lapse of time or both would constitute, a material breach or material default on the giving part of noticeany Company Entity under, any Material Contract. Except as set forth on Schedule 3.18(b), to Company’s Knowledge, no other party to any Material Contract is or is alleged to be in breach thereof or default thereunder, nor to the Company’s Knowledge, is there any event or condition which constitute, or both) in after notice or lapse of time or both would constitute, a material breach thereunder and (iv) neither or material default on the Company nor part of any of its Subsidiaries has received other party, under any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract. Company has made available to Buyer correct and complete copies of all Material Contracts, together with all amendments, modifications or supplements thereto.
Appears in 2 contracts
Sources: Contribution and Merger Agreement, Contribution and Merger Agreement (American Renal Associates LLC)
Material Contracts. (a) Except for the Original Merger Agreement, the Contracts filed as exhibits to the Company SEC Reports, and the Contracts listed in Subsections (i) through (xxi) of Section 3.9(a3.16(a) of the Company Disclosure Letter sets forth a complete and correct list Schedule, as of the date of this AgreementOriginal Execution Date, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct none of the Company or any of its Subsidiaries is a party to or bound by the following Contracts:
(i) any Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract relating to the formation, creation, operation, management or control of any Subsidiary of the Company or any other partnership, joint venture, strategic collaboration, global affiliation or business cooperation, limited liability company or similar arrangement;
(iii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business) or advance to (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries 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 for more than US$5,000,000;
(iv) any Contract involving Indebtedness of the Company or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeSubsidiaries of more than US$5,000,000;
(v) any Contract containing covenants binding upon (including so called take-or-pay or keep-well agreements) under which any person (other than the Company, Company or any of its Subsidiaries, ) has directly or indirectly guaranteed Indebtedness of the Company or any of their respective Affiliates its Subsidiaries of more than US$5,000,000;
(vi) any Contract granting or evidencing a Lien on any properties or assets of the Company or any of its Subsidiaries with value of more than US$5,000,000, other than a Permitted Encumbrances;
(vii) any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(viii) any Contract for the acquisition, disposition, sale, transfer or lease (including Parent and leases in connection with financing transactions) of properties or assets of the Company or any of its Affiliates after the Effective TimeSubsidiaries that have a fair market value or purchase price of more than US$5,000,000 (by merger, purchase or sale of assets or stock or otherwise) entered into since December 31, 2014 or, if prior to that materially restricts date, have representations, warranties or indemnities that remain in effect or as to which claims are pending;
(ix) any Contracts involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other dispute with amount in controversy greater than US$5,000,000;
(x) any Contract involving a standstill or similar arrangement;
(xi) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except industry or line of business;
(xii) any Contract for the employment of any senior executive officer;
(xiii) any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$5,000,000;
(xiv) any Contract (other than Contracts granting Company Options, or Company RSs) giving the other party the right to terminate such Contract that may as a result of the Original Merger Agreement, this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any payment in excess of US$5,000,000 to be canceled without penalty made by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, calendar year or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material the value of the outstanding receivables due to the Company and its Subsidiaries taken as under such Contract is in excess of US$5,000,000 in any calendar year;
(xv) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) pledging of share capital of the Company or any of its Subsidiaries or (C) issuance of guarantee by the Company or any of its Subsidiaries;
(xvi) any Contract providing for (A) a wholelicense, covenant not to s▇▇ or that is material other right granted by any Third Party under any Intellectual Property to the Company or any of its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or Subsidiaries, (B) Contracts including non-exclusive licenses a license, covenant not to s▇▇ or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making right granted by the Company or any of its Subsidiaries to any Third Party under any Intellectual Property, (C) an indemnity of payments any person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or violation of any Intellectual Property right, or (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any person by reason of the ownership, use, sale or disposition of Intellectual Property, in each case of clauses (A) through (D), other than agreements for off-the-shelf Software and such Contracts that are not material to business of the Group Companies, taken as a whole, and in each case of clauses (C) and (D), other than Contracts entered into by the Company and its Subsidiaries in the future ordinary course of business;
(xvii) any Contract granting rights in excess respect of $100,000 per annum exclusivity, “most favored nation” or $500,000 during similar rights;
(xviii) any Contract between or among the life Company or any of its Subsidiaries, on the one hand, and any of their respective Affiliates (other than the Company or any of its Subsidiaries), on the other hand, that involves payments of more than US$5,000,000 in any one year;
(xix) each Control Agreement and any other any Contract which (A) provides the Company with effective control over any of its Subsidiaries in respect of which it does not, directly or indirectly, own a majority of the Contractequity interests (each, an “Operating Subsidiary”), (B) provides the Company or any of its Subsidiaries the right or option to purchase the equity interests in any Operating Subsidiary, or (C) transfers economic benefits from any Operating Subsidiary to any other Subsidiary of the Company;
(xx) any Contract between the Company or any of its Subsidiaries and any director or executive officer of the Company or any person beneficially owning five percent or more of the outstanding Shares required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act (including those that would be required to be disclosed if the Form 20-F were filed as of the Original Execution Date); or
(xxi) any other Contract which, if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract described in clauses (i) – to (xiiixxi) (and each such Contract that is would be a Material Contract if it had not excluded pursuant been filed as an exhibit to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, SEC Reports is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, : (i) neither each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in full force and effect and enforceable against such Group Company in accordance with its terms, subject to the Bankruptcy and Equity Exception; (ii) to the knowledge of the Company, each Material Contract is a legal, valid and binding obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception; (iii) no Group Company nor any of its Subsidiaries is (and, to the Knowledge knowledge of the Company, no other party is) counterparty, is or is alleged to be in breach or violation of, or default under under, any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and ; (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge knowledge of the Company, no party has threatened person intends to terminate, terminate any Company Material Contract; and (v) none of the execution of the Original Merger Agreement, the execution of this Agreement or the consummation of any Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the rights of any Group Company under any Material Contract. The Company has furnished or made available to Parent true and complete copies of all Material Contracts, including any amendments thereto.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Zhang Ray Ruiping), Agreement and Plan of Merger (eHi Car Services LTD)
Material Contracts. Schedule 2.10 of the Schedule of Exceptions contains a complete and accurate list of all of the following contracts, agreements, instruments and arrangements to which the Company is a party (a true and complete copy of each of which has been delivered by the Company to the Purchaser) (the “Material Contracts”):
(a) All collective bargaining agreements and other labor agreements; all employment, consulting, independent contractor and work made for hire agreements, all Plans (as defined in Section 3.9(a2.13(a)) and all other plans, agreements, arrangements or practices which constitute or specify compensation or benefits to any of the Company Disclosure Letter sets forth a complete and correct list as directors, officers, employees, consultants or independent contractors of the date of this AgreementCompany;
(b) All contracts, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) agreements and similar obligations under which the Company is or may become obligated to pay any of its Subsidiaries has any current legal, accounting, brokerage, finder’s or future rightssimilar fees or expenses in connection with, obligations or liabilities or to incur any severance pay or special compensation obligations which would become payable by reason of, this Agreement or the consummation of the transactions contemplated hereby;
(c) All contracts, agreements and similar obligations under which the Company is or any of its Subsidiaries or any of their respective properties or assets is subject:
will after the Closing be (i) Contract restricted from carrying on any business or other activities anywhere in the world or (other than this Agreementii) that is required bound to be filed by the Company participate in any allocation or sharing of Taxes (as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so fileddefined in Section 2.12);
(iid) indentureAll contracts, credit agreementagreements and similar obligations (including, loan agreementwithout limitation, security agreement, guarantee, note, mortgage options) to (i) sell or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale otherwise dispose of any assets or rights of its assets after the date hereof (other than sales of inventory, product or obsolete equipment Company except in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (Bii) that restricts in any respect the operations purchase or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in otherwise acquire any material respect;
(viii) any Contract, excluding any purchase order assets or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into except in the ordinary course of business consistent with past practice with customers business;
(e) All contracts, agreements and similar obligations under which the Company has or will after the Closing have any liability or obligation to or for the benefit of any Affiliate (as defined in Section 2.17 hereof) of the Company;
(f) All contracts, agreements and similar obligations under which the Company has any liability or obligation for Debt or constituting or giving rise to a Guarantee of any liability or obligation of any Person, or under which any Person has any liability or obligation constituting or giving rise to a Guarantee of any liability or obligation of the Company or its Subsidiaries; and(including, without limitation, partnership and joint venture agreements);
(xiiig) other Contracts All contracts, agreements and similar obligations under which the Company may become obligated to pay any amount in excess of US$10,000 in respect of indemnification obligations, purchase price adjustment or otherwise in connection with any (i) acquisition or disposition of assets other than this Agreement, purchase orders sales of inventory in the ordinary course of business, (ii) acquisition or disposition of securities, (iii) assumption of liabilities or warranty, (iv) settlement of claims, (v) merger, consolidation or other business consistent with past practicecombination, or (vi) any series or group of related transactions or events of a type specified in subclauses (i) through (v);
(h) All license agreements, royalty agreements, software development agreements, joint venture agreements, distribution agreements, reseller agreements, supply agreements, manufacturing agreements, other agreements between relating to Technology or IP Rights or pursuant to which the Company and any of its wholly owned Subsidiaries has granted rights or between any permission to use Technology or IP Rights of the Company’s wholly owned Subsidiaries, and similar commercial arrangements;
(i) that contain obligations All contracts with Governmental Entities;
(including “earnout” j) Each other contract, agreement, instrument, arrangement, commitment or other contingent payment obligations) that would obligation the unremedied breach of which could reasonably be expected to result in the receipt or making by the have a Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”Adverse Effect;
(bk) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed All contracts with the SEC prior to the date hereofmerchants, processors, suppliers, card companies. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company All such Material Contracts is are valid, binding and in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiariesand, to the Company’s Knowledge, each other party thereto have performed in all material respects their obligations thereunder, and neither the Company nor, to the Knowledge Company’s Knowledge, any other party thereto is in default of the Companyany material provision thereunder, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (nor has there occurred any event or circumstance which with notice or without the lapse of time or both would constitute such a default or event of default, on the giving part of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, andor, to the Knowledge of the Company, no party has threatened to terminate’s Knowledge, any Company other party thereto or give to any other party thereto the right to terminate or modify in any material respect any such Material Contract. The Company has not received written notice that any party to any such Material Contract intends to cancel, terminate or refuse to renew such contract or to exercise or decline to exercise any option or right thereunder. Except as provided in this Agreement, there is no contract, agreement or other arrangement entitling any person or other entity to any profits, revenues or cash flows of Company or requiring any payments of other distributions based on such profits, revenues or cash flows.
Appears in 2 contracts
Sources: Merger Agreement (Pipeline Data Inc), Merger Agreement (Pipeline Data Inc)
Material Contracts. (a) Section 3.9(a) Except for this Agreement, the Ancillary Agreements and other contracts and agreements which individually or in the aggregate are not material to Company’s or any of the Company Disclosure Letter sets forth a complete and correct list its subsidiaries’ businesses, as of the date of this Agreement, excluding Company is not a party to or bound by:
(a) continuing contracts (other than purchase orders) for the purchase of materials, supplies, equipment or services involving in the case of any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) such contract under which aggregate payments in excess of $650,000 were made during the year ended December 31, 2003 that expires or may be renewed at the option of any Person (other than Company) so as to expire more than one (1) year after the date of this Agreement;
(b) any trust indenture, mortgage, promissory note, loan agreement or other contract for the borrowing of money, any currency exchange, commodities or other hedging arrangement (other than any such arrangement entered into for bona fide hedging purposes) or any leasing transaction of the type required to be capitalized in accordance with GAAP;
(c) any contract for capital expenditures in excess of $1,000,000 in the aggregate;
(d) any contract limiting the freedom of Company to engage in any line of business (other than in connection with licenses of Intellectual Property to or from Company or any of its Subsidiaries has Subsidiaries), to acquire any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in asset from any other Person outside the ordinary course of business, to sell any material product or asset outside the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiariesto, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in perform any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in service outside the ordinary course of business consistent for, any Person, or to compete with past practice with customers of any other Person (as that term is defined in the Company or its Subsidiaries; andExchange Act);
(xiiie) any contract pursuant to which Company is a lessor of real property or of any machinery, equipment, motor vehicles, office furniture, fixtures or other Contracts (other than this Agreement, purchase orders personal property involving in the ordinary course case of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of such personal property contact more than $100,000 per annum or $500,000 during 50,000 over the life of the Contract. Each such Contract described in clauses contract that expires or may be renewed at the option of any Person other than Company so as to expire more than one (i1) – (xiii) (that is not excluded pursuant to clause (x) or (y) year after the date of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”this Agreement;
(bf) True and correct in all any material respects copies contract with any Person with whom Company does not deal at arm’s length;
(g) any contract which provides for the indemnification of each Company Material Contract have been made available to Parent any officer, director, employee or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, agent; or
(ih) neither the Company nor any guarantee of its Subsidiaries is (and, to the Knowledge indebtedness of the Company, no any other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractPerson.
Appears in 2 contracts
Sources: Merger Agreement (Nptest Holding Corp), Agreement and Plan of Reorganization (Credence Systems Corp)
Material Contracts. (a) Except for this Agreement, Section 3.9(a) 4.17 of the Company Disclosure Letter sets forth contains a complete and correct list list, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described below in this Section 3.9(a4.17(a) under which the Company or any of its Subsidiaries Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:, in each case as of the date of this Agreement other than Company Benefit Plans listed on Section 4.10(a) of the Company Disclosure Letter (all Contracts of the type described in this Section 4.17(a) being referred to herein as the “Material Contract”):
(i) each Contract (other than this Agreement) that is required to be filed by limits in any material respect the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K freedom of the SEC but is not so filed;
(ii) indentureCompany, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates its affiliates (including Parent and its Affiliates affiliates after the First Effective Time) to compete or (B) that restricts engage in any respect line of business or geographic region or with any Person, sell, supply or distribute any product or service or that otherwise has the operations or conduct effect of restricting the Company or any of Company, its Subsidiaries or any of their respective Affiliates affiliates (including Parent and its Affiliates affiliates after the First Effective Time)) from the development, marketing or distribution of products and services, in each case, in any such casegeographic area, which is in a manner material to the Company and its Subsidiaries, taken as a whole;
(vii) any Contract containing covenants binding upon the Companypartnership, any of its Subsidiariesjoint venture, or any of their respective Affiliates limited liability company agreement (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for other than any such Contract that may be canceled without penalty by the Company agreement solely between or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to among the Company and its Subsidiaries taken as a whole, wholly-owned Subsidiaries) or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government similar Contract;
(xiiii) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses each acquisition or (B) Contracts including non-exclusive licenses divestiture Contract that contains representations, covenants, indemnities or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making of future payments in excess of $1,000,000;
(iv) any Contract pursuant to which the Company or any Company Subsidiary licenses (in or out) Intellectual Property Rights or has granted to a third party an option or other right or immunity (including a covenant not to be sued or right to enforce or prosecute any patents) with respect to any Company IP, in each case that is material to the conduct of the Company’s and the Company Subsidiaries’ business taken as a whole as currently conducted, except (A) Contracts for off-the-shelf, shrink-wrap, click through or pre-installed software, hardware or databases licensed to the Company or any Company Subsidiary with annual fees of less than $1,000,000 and (B) standard licenses of the Company IP granted by the Company or its Company Subsidiaries in the ordinary course of business;
(v) any settlement agreement or similar Contract imposing operational restrictions or conduct requirements on the Company or any Company Subsidiary or any of their respective affiliates (including the Parent and its Subsidiaries affiliates after the First Effective Time);
(vi) each Contract not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary is obligated to pay, or entitled to receive, payments in the future in excess of $100,000 per annum 3,000,000 in the twelve (12) month period following the date hereof and which cannot be terminated by the Company on less than ninety (90) days’ notice without material payment or penalty;
(vii) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $500,000 during 1,000,000;
(viii) each Contract that grants any right of first refusal or right of first offer or that limits the life ability of the Contract. Each such Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the First Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any material businesses or material assets;
(ix) each supply or payment processing Contract described in clauses (i) – (xiii) (that contains any exclusivity rights or “most favored nations” provisions or minimum use, supply or display requirements that is not excluded pursuant to clause binding on the Company or its affiliates, including Parent or its affiliates after the First Effective Time;
(x) each Company Lease;
(xi) each Contract relating to outstanding or potential Indebtedness (y) of the lead-or commitments in language in Section 3.9(a)), whether or not set forth on Section 3.9(arespect thereof) of the Company Disclosure Letteror the Company Subsidiaries (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000;
(xii) each Contract involving derivative financial instruments or arrangements (including swaps, caps, floors, futures, forward contracts and option agreements) for which the aggregate exposure (or aggregate value) to the Company and the Company Subsidiaries is referred reasonably expected to herein be in excess of $1,000,000 or with a notional value in excess of $1,000,000;
(xiii) each operating expense or revenue generating Contract with the top 5 property managers, top 3 advertising contracts and top 5 suppliers of the Company and its Subsidiaries (determined by revenue or operating expenses, as applicable, over the trailing twelve months ended September 30, 2015);
(xiv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate or family member;
(xv) each collective bargaining agreement and each Contract with any labor union; and
(xvi) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “Company Material Contractmaterial contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company.”
(b) True and correct in all material respects complete copies of each Company Material Contract have in effect as of the date hereof has been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract where such breach or default has not had and would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the knowledge of the Company, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries each Material Contract is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the a valid, binding and enforceable obligation of the Company and its Subsidiariesor the Company Subsidiary which is party thereto and, and to the Knowledge knowledge of the Company, of the each other parties party thereto, and is in full force and effect, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractLimitations.
Appears in 2 contracts
Sources: Agreement and Plan of Reorganization (Homeaway Inc), Agreement and Plan of Reorganization (Expedia, Inc.)
Material Contracts. (a) Section 3.9(a3.17(a) of the Company Disclosure Letter Schedule sets forth a true and complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, Agreement of each Contract described in this Section 3.9(a) under which of the following Company or any of its Subsidiaries has any current or future rightsContracts, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
together with all amendments thereto: (i) each Company Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any material respect the operations or conduct ability of the Company or any of its Subsidiaries or any of their respective the Company’s current or future Affiliates (including Parent and its Affiliates after the Effective Time), to sell products in or otherwise compete in any such casegeographic area or line of business; (ii) any Company Contract pursuant to which any Person provides manufacturing services involving the Product, which is material to any Pipeline Product or any product using Nab® Technology for the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, or any of its Subsidiaries, (iii) each Company Contract pursuant to which the Company or any of their respective Affiliates its Subsidiaries grants or is granted any license to use or exploit, covenant not to ▇▇▇, immunity from suit or similar rights under any Intellectual Property of a third party that, in each case, is related to the Product, any Pipeline Product, or the Nab® Technology; (including Parent and iv) each Company Contract pursuant to which raw materials are supplied, or equipment is supplied or leased, to the Company or any of its Affiliates after Subsidiaries (excluding purchase orders given or received in the Effective Timeordinary course of business), in each case relating to any key component or manufacturing involved in the compounding or formulation of the Product or any products using Nab® Technology; (v) each Company Contract that materially restricts grants any right of first refusal or right of first offer or similar right or that limits or purports to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, pledge or such Affiliate otherwise dispose of any material amount of assets or businesses relating to compete in the Product, any businessPipeline Product, or with any Person or in any geographic area, except the Nab® Technology; (vi) each Company Contract providing for any such Contract that may be canceled without penalty future performance by the Company or any of its Subsidiaries upon notice in consideration of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under amounts previously paid, the laws balance of any applicable jurisdiction;
which exceeds $5,000,000 as of the date of this Agreement; and (vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement other “material contract” (as such term is defined in any material respect;
(viiiItem 601(b)(10) any Contract, excluding any purchase order or similar documentation that does not contain material terms of Regulation S-K of the relationship between Securities Act) that were required to be filed with or furnished to the parties, that is SEC prior to the date of this Agreement. Each Company Contract (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract type described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (ySection 3.17(a) of the lead-Disclosure Schedule, whether or not disclosed in language response to this Section 3.17(a), or referred to in Section 3.9(a)3.17(b), whether or not set forth on Section 3.9(aprovided or publicly filed, and (B) entered into after the date of this Agreement and of the type required to be described in Section 3.17(a) or referred to in Section 3.17(b), whether or not provided or publicly filed of the Disclosure Schedule if such Company Disclosure LetterContract were in effect as of the date of this Agreement, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each The Company Material Contract have been made available has provided to Parent or publicly filed with the SEC prior true and complete copies of each Company Contact referred to in Section 3.17(a) and each of the following Company Contacts, in each case that are in effect as of the date of this Agreement: (i) each Company Contract with customers (excluding purchase orders given or received in the ordinary course of business) under which the Company or any of its Subsidiaries received in excess of $10,000,000 in 2009 or is expected to receive in excess of $10,000,000 in 2010 or any year thereafter; (ii) each Company Contract pursuant to which the Company or any of its Subsidiaries occupies Leased Real Property and under which the Company or any of its Subsidiaries is required to pay an annual rental in excess of $5,000,000 in 2010 or any year thereafter; and (iii) each Company Contract for any joint venture (whether in partnership, limited liability company or other organizational form), co-promote agreements or co-branding agreements (other than distribution agreements) or agreements pursuant to which the Company or any of its Subsidiaries permitted distribution of the Product or the Pipeline Products under another party’s name or trademarks.
(c) All Material Contracts are valid and in full force and effect and enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and general equity principles, except to the date hereof. Except as extent that (i) such Material Contracts have previously expired or otherwise terminated in accordance with their terms or (ii) the failure to be in full force and effect would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect, (i) neither . Neither the Company nor any of its Subsidiaries is (andSubsidiaries, nor, to the Knowledge of the Company, no other party is) in default under any Company counterparty to any such Material Contract, (ii) each of the Company Material Contracts is in full force and effecthas violated any provision of, and is the validor committed or failed to perform any act which, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the notice, lapse of time or the giving of noticeboth, would constitute a default under, or both) give rise to a right of termination, modification, cancellation, foreclosure, imposition of a Lien, prepayment or acceleration under the provisions of any Material Contract, except in breach thereunder and (iv) neither each case for those violations or defaults which would not reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received written notice that it has breached, violated or defaulted under any notice of termination with respect to, and, Material Contract. Prior to the Knowledge date of this Agreement, the Company, no party has threatened Company and its Subsidiaries have not received any written claims for indemnification pursuant to terminate, any Company Material Contractthe 2007 Separation and Distribution Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Abraxis BioScience, Inc.), Merger Agreement (Celgene Corp /De/)
Material Contracts. (a) Except for this Agreement and the Company Benefit Plans (which, for the Company Benefit Plans, shall not apply to Section 3.9(a) 3.15(x)(v)), Section 3.15 of the Company Disclosure Letter sets forth Schedule contains a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described below in this Section 3.9(a3.15(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries is a party or any bound, in each case as of their respective properties the date of this Agreement (all Contracts of the type required to be disclosed in this Section 3.15(a), whether or assets is subject:not set forth in Section 3.15 of the Company Disclosure Schedule, being referred to herein as the “Material Contracts”):
(i) each Contract (other than this Agreement) that is required to be filed by limits in any material respect the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K freedom of the SEC but is not so filed;
(ii) indentureCompany, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates affiliates (including Parent and its Affiliates affiliates after the Effective Time) to (A) compete or engage (x) in any line of business, (y) in any geographic region or (z) with any Person or (B) that restricts in sell, supply or distribute any respect the operations product or conduct of service, build on or acquire real property, use or enforce any Owned Company IP or Intellectual Property Rights exclusively licensed to the Company or any of its Subsidiaries, or hire or solicit any Person in any manner that, in each case of this clause (B), has the effect of restricting in any material respect the Company, its Subsidiaries or any of their respective Affiliates affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates affiliates after the Effective Time) that materially restricts from the ability development, marketing or distribution of the Company or any of its Subsidiaries or such Affiliate to compete products and services, in any businesseach case, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any and in each of its Subsidiaries upon notice of 60 days or lessclause (A) and clause (B), other than customary confidentiality obligations;
(viii) any Contract with respect to a each partnership, joint venture venture, strategic alliance, or partnership formed under the laws of any applicable jurisdiction;
(vii) any similar Contract that would prevent provides for the sharing of revenues or materially delay the Company from performing its obligations under this Agreement in profits (other than any material respect;
(viii) any Contract, excluding any purchase order such agreements solely between or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to among the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Timewholly owned Subsidiaries);
(xiii) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses each acquisition or (B) Contracts including non-exclusive licenses divestiture Contract that contains representations, covenants, indemnities or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of future payments in the future thereunder in excess of $100,000 per annum 1,000,000;
(iv) each Contract that gives any Person the right to acquire any equity interests, business or $500,000 during the life material assets of the Contract. Each such Company or any of its Subsidiaries (excluding Real Estate Purchase Agreements, any other Contracts executed in connection therewith in the ordinary course of business consistent with past practice and other ordinary course commitments to acquire or dispose of real property, including individual homes, lots, inventory, products, goods, services, supplies, equipment or off-the-shelf technology, Contracts relating to the joint acquisition of real property and Contracts that give any Person a right to or interest in the proceeds of sale of any real property), including any Contracts containing any right of first refusal or right of first offer or Contract described that limits the ability of the Company, any of its Subsidiaries or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any of their equity interests, businesses or material assets after the date of this Agreement, in clauses each case, with consideration of more than $1,000,000;
(v) each Contract that: (i) – provides for the authorship, invention, creation, conception or other development of any material Intellectual Property or Intellectual Property Rights (xiiiA) by the Company or a Subsidiary of the Company for any other Person or (B) for the Company or Subsidiary of the Company by any other Person (excluding agreements with employees, independent contractors, engineering firms (or engineers), architectural firms (or architects) or similar professional enterprises); (ii) provides for the assignment or other transfer of any ownership interest in material Intellectual Property or Intellectual Property Rights (A) to the Company from any other Person (excluding agreements with employees, independent contractors, engineering firms (or engineers), architectural firms (or architects) or similar professional enterprises) or (B) by the Company to any other Person; (iii) includes any grant of an Intellectual Property License to any other Person by the Company (other than, with respect to this subsection (iii), non-exclusive licenses granted to customers, contractors, consultants, engineering firms (or engineers), architectural firms (or architects) or similar professional enterprises in the ordinary course of business); or (iv) includes any grant of an Intellectual Property License by any other Person (other than, with respect to this subsection (iv) only, Intellectual Property Licenses for off-the-shelf Software and other Software that is not excluded pursuant to clause generally commercially available on standard terms, and non-exclusive licenses granted by customers, contractors, consultants, engineering firms (xor engineers), architectural firms (or architects) or similar professional enterprises or other vendors in the ordinary course of business);
(vi) each settlement agreement or similar Contract (excluding any customary non-disclosure agreement) that (A)(x) imposes material obligations on the Company and its Subsidiaries after the date of this Agreement (for the avoidance of doubt, other than customary confidentiality obligations) or (y) involves payments after the date of this Agreement in excess of $1,000,000 or (B) is with a Governmental Entity;
(vii) each Contract not otherwise described in any other subsection of this Section 3.15(a) pursuant to which the Company or any of its Subsidiaries is obligated, in accordance with the terms thereof, to pay, or entitled to receive, payments in excess of $5,000,000 in the twelve (12) month period immediately following the date of this Agreement, excluding Real Estate Purchase Agreements or any other Contracts that are expressly excluded from disclosure under any other category in this Section 3.15(a);
(viii) each Contract that obligates the Company or any of its Subsidiaries to make any capital investment or capital expenditure, in each case (other than in respect of purchases of real property) outside the ordinary course of business and in excess of $1,000,000 per annum individually;
(ix) each Contract that is a Material Supplier Agreement;
(x) each Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements, in each case, for the benefit of the lead-in language in Section 3.9(a))applicable counterparty;
(xi) each Affiliate Contract;
(xii) each Contract providing for indemnification of any officer, whether director or not set forth on Section 3.9(a) employee of the Company Disclosure Letteror any of its Subsidiaries by the Company or any of its Subsidiaries, other than Contracts entered into on substantially the same form as the standard forms of the Company and its Subsidiaries;
(xiii) each Contract creating (A) outstanding indebtedness for borrowed money (including debt securities) (or commitments in respect thereof), (B) obligations under forward currency exchanges, interest rate protection agreements, swap agreements or hedging arrangements, (C) obligations (as lessee) that are, or pursuant to GAAP, should be, recorded as capital or finance leases or (D) obligations similar to any of the foregoing, in each case, of the Company or of its Subsidiaries (whether incurred, assumed, guaranteed or secured by any asset), in an amount in excess of $1,000,000;
(xiv) each guaranty of any obligation made by the Company or any of its Subsidiaries on behalf of any Person other than the Company or any of its Subsidiaries, which could result in an amount owed in excess of $500,000;
(xv) each Contract with any Service Provider providing annual base compensation opportunities in excess of $250,000 or that would otherwise entitle any such Service Provider with post-termination benefits the value of which exceeds $250,000, in each case, excluding commission opportunities and commission payment obligations;
(xvi) each Labor Agreement; and
(xvii) any Contract not otherwise described in any other subsection of this Section 3.15(a) that would constitute a “material contract” (as such term is referred defined in Item 601(b)(10) of Regulation S-K promulgated by the SEC, other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K) with respect to herein the Company and its Subsidiaries, taken as a “Company Material Contractwhole.”
(b) True True, correct and correct in all material respects complete copies of each Company Material Contract in effect as of the date of this Agreement have been made available to Parent or publicly filed with the SEC prior to the date hereofof this Agreement. Except None of the Company or any of its Subsidiaries is in (or with the passage of time or the giving of notice or both would be in) breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Knowledge of the Company, as of the date of this Agreement, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) to any Material Contract is in breach of or default under the terms of any Company Material Contract, Contract and (ii) each of party to any Material Contract has performed all obligations required to be performed by it under such Contract. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Contracts Adverse Effect, each Material Contract is in full force and effect, and is the a valid, binding and enforceable obligation of the Company or its Subsidiary which is party thereto and its Subsidiaries, and to the Knowledge of the Company, of the each other parties party thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminateis in full force and effect, any Company Material Contractexcept as limited by applicable Laws affecting the enforcement of creditors’ rights generally or by general equitable principles (whether considered in a proceeding at law or in equity).
Appears in 2 contracts
Sources: Merger Agreement (Beazer Homes Usa Inc), Merger Agreement (Dream Finders Homes, Inc.)
Material Contracts. (a) Section 3.9(aSchedules 2.19(a)(i) through (xxvii) of the Company Disclosure Letter sets set forth a complete and correct list as of each of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following Contracts to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:a party that are in effect on the Agreement Date (collectively, the “Material Contracts”):
(i) any Contract with a (other than this AgreementA) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10Customer or (B) of Regulation S-K of the SEC but is not so filedSignificant Supplier;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement any Contract providing for Indebtedness payments to the Company (or under which the Company has made or received such payments) in excess of $100,000the period since the Company’s inception;
(iii) any Contract providing for payments by the Company (or under which the Company has made such payments) in the period since the Company’s inception in an aggregate amount of $10,000 or more per annum;
(iv) any dealer, reseller, distributor, referral, sales representative or similar agreement, or any Contract providing for the grant of rights to reproduce, license, market, refer or sell the Company’s products or services to any other Person or relating to the advertising or promotion of the Business or pursuant to which any third parties advertise on any websites operated by the Company;
(v) (A) any joint venture Contract, (B) any Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons and (C) any Contract that involves the payment of royalties to any other Person;
(vi) any separation agreement or severance agreement with any current or former employees under which the Company has any on-going payment obligations or potential future payment obligations;
(vii) any Contract for or relating to the employment or service (other than this Agreementat-will employment Contracts that do not provide for severance or other termination benefits) for of any director, officer, employee, consultant or beneficial owner of more than 5% of the sale total shares of Company Common Stock or any other type of Contract with any of the Company’s directors, officers, employees, consultants or beneficial owners of more than 5% of the total shares of Company Common Stock, as the case may be;
(viii) any Contract (A) pursuant to which any other party is granted exclusive rights or “most favored party” rights of any type or scope with respect to any of the Company Products or Company Intellectual Property, (B) containing any non-competition covenants or other restrictive covenants relating to the Company Products or Company-Owned Intellectual Property, (C) that, excluding restrictions and other limitations on the use of Third-Party Intellectual Property contained in the applicable written license agreement therefor, limits or would limit the freedom of the Company any of its successors, assigns or Affiliates to (I) engage or participate, or compete with any other Person, in any line of business, market or geographic area with respect to the Company Products or the Company Intellectual Property, or to make use of any Company Intellectual Property, including any grants by the Company of exclusive rights or licenses or (II) sell, distribute or manufacture any products or services or to purchase or otherwise obtain any software, components, parts or services, (D) containing any “take or pay,” minimum commitments or similar provisions or (E) that is set forth on Schedule 2.15(p) of the Company Disclosure Letter;
(ix) any standstill or similar agreement containing provisions prohibiting a third party from purchasing Equity Interests of the Company or the assets after of the date hereof Company or otherwise seeking to influence or exercise control over the Company;
(x) other than (A) licenses Open Source Materials, (B) “shrink wrap” and similar generally available commercial end-user licenses to software that have an individual acquisition cost of $1,000 or less and are not incorporated into or integrated with, or directly used in the development of, the Company Products and (C) employee invention assignment agreements and consulting agreements with Authors on the Company’s standard form(s) of agreement, copies of which have been provided to Acquirer, all licenses, sublicenses and other Contracts to which the Company is a party and pursuant to which the Company acquired or is authorized to use any Third-Party Intellectual Property;
(xi) any license, sublicense or other Contract pursuant to which any Person is authorized to manufacture, reproduce or use any Company Product or is otherwise granted a license under any Company-Owned Intellectual Property (other than sales Standard Outbound Licenses);
(xii) any license, sublicense or other Contract pursuant to which the Company has agreed to any restriction on the right of inventorythe Company to use or enforce any Company-Owned Intellectual Property or, product excluding Permitted Encumbrances, pursuant to which the Company agrees to encumber, transfer or obsolete equipment sell rights in or with respect to any Company-Owned Intellectual Property;
(xiii) any Contracts relating to the membership of, or participation by, the Company in, or the affiliation of the Company with, any industry standards group or association;
(xiv) any Contract providing for the development of any software, technology or Intellectual Property, independently or jointly, either by or for the Company (other than employee invention assignment agreements and consulting agreements with Authors on the Company’s standard forms of agreement, copies of which have been provided to Acquirer);
(xv) any confidentiality, secrecy or non-disclosure Contract other than any such Contract entered into by the Company in the ordinary course of business consistent with past practice);
(ivxvi) settlement agreement any Contract to license or similar Contract with a Governmental Entity (A) involving future performance by the Company authorize any third party to manufacture or reproduce any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company Products or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeIntellectual Property;
(vxvii) any Contract containing covenants binding upon any indemnification, warranty, support, maintenance or service obligation or cost on the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability part of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in outside the ordinary course of business consistent with past practice practices;
(xviii) any settlement agreement with customers respect to any Legal Proceeding;
(xix) any Contract pursuant to which rights of any third party are triggered or become exercisable, 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 Merger or the other Transactions;
(xx) any Contract or plan (including any stock option, merger and/or stock bonus plan) relating to the sale, issuance, grant, exercise, award, purchase, repurchase or redemption of any shares of Company Capital Stock or any other securities of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreementany options, purchase orders in the ordinary course of business consistent with past practicewarrants, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” convertible notes or other contingent payment obligations) that would reasonably be expected rights to result in purchase or otherwise acquire any such shares of stock, other securities or options, warrants or other rights therefor, except for the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (xrepurchase rights disclosed on Schedule 2.2(a) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(aSchedule 2.2(b) of the Company Disclosure Letter;
(xxi) any Contract with any labor union or any collective bargaining agreement or similar contract with its employees;
(xxii) any trust indenture, mortgage, promissory note, loan agreement or other Contract for the borrowing of money, any currency exchange, commodities or other hedging arrangement or any leasing transaction of the type required to be capitalized in accordance with GAAP;
(xxiii) any Contract of guarantee, surety, support, indemnification (other than pursuant to its standard end user agreements), assumption or endorsement of, or any similar commitment with respect to, the Liabilities or indebtedness of any other Person;
(xxiv) any Contract for capital expenditures in excess of $5,000 in the aggregate;
(xxv) any Contract pursuant to which the Company is referred a lessor or lessee of any real property or any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property;
(xxvi) any Contract pursuant to herein as which the Company has acquired a business or entity, or assets of a business or entity, whether by way of merger, consolidation, purchase of stock, or purchase of assets, or any Contract pursuant to which it has any ownership interest in any other Person; and
(xxvii) any Contract with any Governmental Entity, any Company Authorization, or any Contract with a government prime contractor, or higher-tier government subcontractor, including any indefinite delivery/indefinite quantity contract, firm-fixed-price contract, schedule contract, blanket purchase agreement, or task or delivery order (each a “Company Material Government Contract”).”
(b) True and correct All Material Contracts are in written form. The Company has performed all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Companyobligations required to be performed by it and is entitled to all benefits under, no other party is) and is not alleged to be in default under in respect of, any Company Material Contract, (ii) each . Each of the Company Material Contracts is in full force and effect, subject only to the effect, if any, of applicable bankruptcy and is other similar Applicable Law affecting the validrights of creditors generally and rules of law governing specific performance, binding injunctive relief and enforceable obligation other equitable remedies. There exists no default or event of default or event, occurrence, condition or act, with respect to the Company and its Subsidiariesor, and to the Knowledge knowledge of the Company, with respect to any other contracting party, that, with the giving of the other parties theretonotice, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving happening of noticeany other event or condition, would reasonably be expected to (i) become a default or event of default under any Material Contract or (ii) give any third party (A) the right to declare a default or exercise any remedy under any Material Contract, (B) the right to a rebate, chargeback, refund, credit, penalty or change in delivery schedule under any Material Contract, (C) the right to accelerate the maturity or performance of any obligation of the Company under any Material Contract, or both(D) in breach thereunder and (iv) neither the right to cancel, terminate or modify any Material Contract. The Company nor any of its Subsidiaries has not received any notice or other communication regarding any actual or possible violation or breach of, default under, or intention to cancel or modify any Material Contract. The Company does not have any Liability for renegotiation of termination with respect toGovernment Contracts. True, and, correct and complete copies of all Material Contracts have been provided to Acquirer at least three Business Days prior to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractAgreement Date.
Appears in 2 contracts
Material Contracts. (a) Set forth in Section 3.9(a3.18(a) of the Company Disclosure Letter sets forth is a complete and correct list of the following Contracts to which the Company or any Company Subsidiary is a party or by which it is bound as of the date hereof (each such Contract, whether or not set forth in such section of this Agreementthe Company Disclosure Letter, excluding a “Material Contract”):
(i) employment Contract (other than ordinary course employment contracts with employees located in Europe), severance Contract, change of control Contract or any employee collective bargaining agreement or other Contract with any labor union;
(ii) Contract not to compete or otherwise restricting in any material respect the development, manufacture, marketing, distribution or sale of any products or services (including any Contract that requires the Company or any of the Company Subsidiaries to work exclusively with any Person in any particular area) or any other similar limitation on the ability of the Company or any of the Company Subsidiaries to transact or compete in any line of business, in any therapeutic area, with any Person, in any geographic area or during any period of time;
(xiii) is Contract containing any provision that applies to or relates to restricts the operations or business of any Affiliate of the Company (other than any of the Company Subsidiaries) in a manner described in Section 3.18(a)(ii);
(iv) Contract with (A) any Affiliate of the Company, other than any of the Company Subsidiaries, or any officer or director, (B) any current holder of capital stock of the Company or any Affiliate (other than any director, officer or employee or former employee holding incentive awards under any Stock Plan) or (C) any director or officer of the Company or a Company Plan, Subsidiary (y) relates exclusively to other than any Contracts of the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract type described in this Section 3.9(a3.18(a)(i) or indemnification agreements) thereof;
(v) each lease, license, sublease or other occupancy right or similar Contract with any Person (together with any amendments or supplements thereto) (each, a “Lease”) under which the Company or any of its the Company Subsidiaries has are a lessee, lessor or sublessor of, or makes available for use, to any current Person (other than the Company) any real property or future rights, obligations any portion or liabilities any premises otherwise occupied by or owned by the Company or any of the Company Subsidiaries;
(vi) Contract (A) requiring or otherwise involving the potential payment by or to the Company or any of the Company Subsidiaries of more than an aggregate of $1,000,000, (B) in which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant Subsidiaries have granted manufacturing rights, “most favored nation” pricing provisions or marketing or distribution rights relating to Item 601(b)(10T▇▇▇▇▇ or (C) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by which the Company or any of its the Company Subsidiaries have agreed to purchase a minimum quantity of goods relating to T▇▇▇▇▇ or has agreed to purchase goods relating to T▇▇▇▇▇ exclusively from a certain party;
(vii) Contract for the disposition of any significant portion of their respective Affiliates (including Parent and its Affiliates after the Effective Time) assets or (B) that restricts in any respect the operations or conduct business of the Company or any of its the Company Subsidiaries or any agreement for the acquisition, directly or indirectly, of their respective Affiliates (including Parent and its Affiliates after a material portion of the Effective Time)assets or business of any other Person, in any such case, which is material to each case within the Company and its Subsidiaries, taken as a wholelast five years;
(vviii) non ordinary course Contract for any joint venture, partnership, material research and development project or similar arrangement;
(ix) Intellectual Property Agreement;
(x) Contract containing covenants binding upon (other than trade debt incurred in the Company, any ordinary course of its Subsidiaries, business) under which the Company or any of their respective Affiliates the Company Subsidiaries have borrowed any money from, or issued any note, bond, debenture or other evidence of indebtedness for borrowed money to, any Person, in each case with a principal amount in excess of $1,000,000;
(xi) Contract (including Parent and its Affiliates after the Effective Timeso-called take-or-pay or keepwell agreements) that materially restricts the ability under which (A) any Person has directly or indirectly guaranteed indebtedness for borrowed money, liabilities or obligations of the Company or any of its the Company Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by (B) the Company or any of its the Company Subsidiaries upon notice have directly or indirectly guaranteed indebtedness for borrowed money, liabilities or obligations of 60 days or less;
any Person (viother than a Company Subsidiary), in each case other than (I) any endorsements for the purpose of collection in the ordinary course of business, (II) Contract with respect a principal amount or expected obligations or liabilities of less than $1,000,000 and (III) ordinary course Contracts relating to a joint venture or partnership formed under the laws research and development of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contractproducts;
(xii) Except for Contracts covered by (vi) above, Contract under which the Company or any of the Company IP Agreements Subsidiaries have, directly or indirectly, made any advance, loan, extension of credit or capital contribution to, or other investment in, any Person other than a Company Subsidiary in excess of $1,000,000;
(Axiii) Shrink-Wrap Licenses Contract providing for any mortgage or (B) Contracts including non-exclusive licenses or other non-exclusive grants by security interest in material property of the Company and the Company Subsidiaries;
(xiv) confidentiality agreements with any full time employee of rights inthe Company or any of the Company Subsidiaries that is not substantially in the form of the Company’s or a Company Subsidiary’s form of confidentiality agreement;
(xv) Contract involving a supply or tolling agreement or arrangement that commits the Company or any of the Company Subsidiaries to purchase goods or supplies relating to T▇▇▇▇▇ for clinical studies or commercial use;
(xvi) Contract involving a standstill or similar obligation of the Company or any of the Company Subsidiaries to a third party or of a third party to the Company or any of the Company Subsidiaries;
(xvii) Contract with any Governmental Authority other than clinical trial Contracts, to or under Company Intellectual Property investigator initiated study Contracts, sponsored research Contracts and similar research and development Contracts; and
(xviii) Contract not entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between that is material to the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein taken as a “Company Material Contractwhole and not required to be disclosed in response to any other subparagraph of this Section 3.18(a).”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to haveresult, individually or in the aggregate, in a Company Material Adverse Effect, (i) each of the Material Contracts is valid, binding and in full force and effect and is enforceable in accordance with its terms by the Company and the Company Subsidiaries party thereto, subject to the Bankruptcy and Equity Exception, (ii) neither the Company nor any of its the Company Subsidiaries is (andin material default under any Material Contract, nor, to the Knowledge knowledge of the Company, does any condition exist that, with notice or lapse of time or both, would constitute a material default thereunder by the Company and the Company Subsidiaries party thereto and (iii) to the knowledge of the Company, no other party is) in default under to any Company Material Contract, (ii) each of the Company Material Contracts Contract is in full force and effectmaterial default thereunder, and is the validnor does any condition exist that, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with notice or without the lapse of time or both, would constitute a material default thereunder of such other party. As of the giving of notice, or both) in breach thereunder and (iv) date hereof neither the Company nor any of its the Company Subsidiaries has received any notice of termination with or cancellation under any Material Contract or received any notice of breach or default in any material respect tounder any Material Contract which breach has not been cured. The Company has provided, andor otherwise made available to Parent, to the Knowledge true and correct copies of all of the CompanyMaterial Contracts in effect as of the date hereof. As used in this Agreement, no party has threatened to terminate“Contract” means any loan or credit agreement, any Company Material Contractdebenture, note, bond, mortgage, indenture, deed of trust, license, lease, contract or other agreement, instrument or obligation.
Appears in 2 contracts
Sources: Merger Agreement (Pfizer Inc), Merger Agreement (Encysive Pharmaceuticals Inc)
Material Contracts. (a) Except as otherwise disclosed in Section 3.9(a) 2.12 of the Parent Disclosure Letter, neither the Company Disclosure Letter sets forth nor any Company Subsidiary is a complete party to or bound by any contract, arrangement, commitment or understanding (whether written or oral):
(i) which is an employment agreement between the Company or a Company Subsidiary, on the one hand, and correct list as any of its officers, directors or employees, on the date other hand, excluding any unwritten agreement that provides de minimis working condition benefits and is terminable unilaterally by the Company or the Company Subsidiaries without liability;
(ii) which, upon the consummation of this Agreement and the transactions contemplated by this Agreement, excluding will (either alone or upon the occurrence of any Contract that additional acts or events, including the passage of time) result in any material payment or benefit (xwhether of severance pay or otherwise) is becoming due, or relates to a Company Plan, (y) relates exclusively to the BBGS Business acceleration or (z) is filed as an exhibit vesting of any right to any Company SEC Documentmaterial payment or benefits, of each Contract described in this Section 3.9(a) under which from the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company Subsidiaries to any officer, director, consultant, agent or employee of any of its Subsidiaries or any of their respective properties or assets is subject:the foregoing;
(iiii) Contract (other than this Agreement) that which is required to be filed by the Company as a material contract pursuant to (as defined in Item 601(b)(10601(b)(10)(i) or 601(b)(10)(ii) of Regulation S-K of the SEC but is not so filed;
(iiSecurities Act) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage to be performed on or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)this Agreement;
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to except for intercompany transactions among the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between relating to the borrowing of money (including any guarantee thereof) or that is a mortgage, security agreement, capital lease or similar agreements, in each case in excess of $75,000 or that creates a Lien on any asset of the Company and or any Company Subsidiary;
(v) relating to the sale of any of its wholly owned Subsidiaries the assets or between properties of the Company or any of the Company Subsidiaries, except inventory sold or to be sold in the ordinary course of the Company’s wholly owned or the Company Subsidiaries’ business;
(vi) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected relating to result in the receipt or making acquisition by the Company or any of its the Company Subsidiaries of payments any assets, operating business or the capital stock of any other Person, except inventory purchased in the future in excess of $100,000 per annum or $500,000 during the life ordinary course of the Contract. Each such Contract described Company’s or the Company Subsidiaries’ business;
(vii) which limits the ability of the Company or any Company Subsidiary to (x) compete in or conduct any line of business or compete with any Person or in any geographic area or distribution or sales channel, (y) sell, supply or distribute any service or product, or (z) offer or purchase the assets or equity securities of another Person, in each case, during any period of time;
(viii) which is a joint venture agreement, joint operating agreement, partnership agreement or other similar contract or agreement involving a sharing of profits and expenses with one or more other Persons;
(ix) which is a shareholder rights agreement or which otherwise provides for the issuance, registration or voting of any securities of the Company or any of the Company Subsidiaries; or
(x) which requires a consent to a change of control of the Company or any of the Company Subsidiaries or to an assignment of the contract, arrangement, commitment or understanding by the Company to another Person, as the case may be; or
(xi) other than those agreements listed in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) above, which provides for the annual aggregate payment or (y) of receipt by the lead-in language in Section 3.9(a)), whether Company or not set forth on Section 3.9(a) any of the Company Disclosure LetterSubsidiaries of amounts in excess of $75,000 individually within the next 12 months and is not terminable without premium or penalty on less than 30 days’ notice. Each contract, arrangement, commitment or understanding of the type described in this Section 2.12(a) is referred to herein as a “Company Material Contract.”
(b) True ” and is listed in Section 2.12 of the Parent Disclosure Letters. The Company has made available to PESI true, complete and correct in all material respects copies of each Company Material Contract.
(b) Each Company Material Contract is valid and binding and in full force and effect and the Company and each of the Company Subsidiaries has performed all obligations required to be performed by them to date under each Company Material Contract, the failure of which, individually or in the aggregate, have been made available to Parent or publicly filed with the SEC prior to the date hereofa Material Adverse Effect. Except as would set forth on Section 2.12 of the Parent Disclosure Letter, and except for such matters as have not had, and could not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, Effect (i) none of Parent, the Company or any of the Company Subsidiaries has received written notice of, and to Parent’s or the Company’s Knowledge, there does not exist, any breach of or violation or default under any of the terms, conditions or provisions of any Company Material Contract and (ii) neither Parent, the Company nor any of its the Company Subsidiaries is (andhas received written notice of, and to Parent’s or the Company’s Knowledge there does not exist, the desire of the Companyother party or parties to any such Company Material Contract to exercise any rights such party has to cancel, terminate or repudiate such Company Material Contract or exercise remedies thereunder. Each Company Material Contract is enforceable by the Company or a Company Subsidiary in accordance with its terms, except as such enforcement may be subject to or limited by (x) bankruptcy, insolvency, reorganization, moratorium or other Laws, now or hereafter in effect, affecting creditors’ rights generally and (y) the effect of general principles of equity (regardless of whether enforceability is considered in a proceeding at law or in equity).
(c) Except for the Company Credit Agreement and except as disclosed in Section 2.12 of the Parent Disclosure Letter, no agreement relating to any indebtedness for borrowed money of the Company or any of the Company Subsidiaries contains any restrictions (other party isthan customary notice provisions) in default under upon (i) the prepayment of any indebtedness of the Company Material Contractor any of the Company Subsidiaries, (ii) each the incurrence by the Company or any of the Company Material Contracts Subsidiaries of any indebtedness for borrowed money, or (iii) the ability of the Company or any of the Company Subsidiaries to grant any Lien on the properties or assets of the Company or any of the Company Subsidiaries. Under the terms of the Company Credit Agreement, the Company is in full force permitted to prepay, upon 30 days prior written notice and effectwithout any form of prepayment penalty, all indebtedness outstanding thereunder and is obtain a release of all Liens on the valid, binding and enforceable obligation assets of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contractwhich secure such indebtedness.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Perma Fix Environmental Services Inc), Stock Purchase Agreement (Homeland Security Capital CORP)
Material Contracts. (a) Section 3.9(a4.19(a) of the Company Disclosure Letter sets forth a complete and correct list Schedule lists, as of the date hereof, each of this Agreementthe following types of Contracts to which the Company or any of its Subsidiaries is a party or by which any of the Company, excluding its Subsidiaries or any of their respective properties is bound (such Contracts required to be so listed, the “Company Material Contracts”):
(a) any Contract that (x) is or relates would be required to a be filed by the Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to a registration statement on Form S-1 or an annual report on Form 10-K filed by the Company;
(b) any Contract that limits the ability of the Company SEC Documentor any of its Subsidiaries or Affiliates to compete in any line of business or with any Person or in any geographic area, or that restricts the right of the Company or any of its Subsidiaries or Affiliates to sell to or purchase from any Person or to hire any Person, or that grants the other party or any third Person “most favored nation” status or any type of analogous rights;
(c) any Contract with respect to the formation, creation, operation, management or control of a joint venture, partnership, limited liability company or other similar arrangement;
(d) any Contract evidencing or relating to Indebtedness;
(e) any Contract involving the acquisition or disposition, directly or indirectly, of each (i) any Person or substantially all of the assets thereof, or (ii) any business units;
(f) any Contract described in this Section 3.9(arelating to the employment of any Person;
(g) under any Contract that by its terms provides for the aggregate payment or receipt by the Company and its Subsidiaries of more than $250,000 over the remaining term of such Contract;
(h) any Contract pursuant to which the Company or any of its Subsidiaries has continuing indemnification, guarantee, “earn-out” or other contingent payment obligations;
(i) any current or future rights, obligations or liabilities or to which Contract that obligates the Company or any of its Subsidiaries to make any capital commitment or investment in, or loan to, any of their respective properties or assets is subject:
(i) Contract Person (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of and its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practiceSubsidiaries);
(ivj) settlement agreement or similar any Contract with a Governmental Entity (A) involving future performance by between the Company or any of its Subsidiaries Subsidiaries, on the one hand, and any director or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) officer, or (B) that restricts in any respect the operations direct or conduct indirect stockholder, of the Company or any of its Subsidiaries Subsidiaries, on the other hand, excluding any Company Plan;
(k) any Contract with respect to any Company Leased Real Property;
(l) any Contract with any Governmental Entity;
(m) any Contract that requires a notice or consent in connection with the transactions contemplated hereby, or that otherwise contains a provision relating to “change of control” or “assignment by operation of law” or an analogous provision, or that would otherwise reasonably be expected to prevent, delay or impair the consummation of the transactions contemplated hereby; and
(n) any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which Contract that is otherwise material to the Company and its Subsidiaries, taken as a whole;
(v) any . Each Company Material Contract containing covenants is valid and binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to on the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (party thereto and, to the Knowledge of the Company, no each other party is) in default under any Company Material Contractthereto, (ii) each of the Company Material Contracts and is in full force and effect, and is the valid, binding effect and enforceable obligation of the in accordance with its terms (except with respect to any Enforceability Exceptions). The Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any each of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, each other party thereto, has performed all material obligations required to be performed by it under each Company Material Contract. There is no party has threatened to terminate, material default under any Company Material ContractContract by the Company or any of its Subsidiaries or, to the Knowledge of the Company, any other party thereto, and no event or condition has occurred that constitutes or, after notice or lapse of time or both, would constitute, a material default on the part of the Company or any of its Subsidiaries or, to the Knowledge of the Company, any other party thereto, nor, as of the date hereof, has the Company or any of its Subsidiaries received any notice of any such material default, event or condition. The Company has made available to Parent on the Virtual Data Room true and complete copies of all Company Material Contracts.
Appears in 2 contracts
Sources: Merger Agreement (Fitlife Brands, Inc.), Merger Agreement (iSatori, Inc.)
Material Contracts. (a) Section 3.9(aSection 4.12(a) of the Company Disclosure Letter Schedule sets forth a true and complete and correct list as of the date of this Agreement of the following Contracts to which, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company PlanEntity is a party (collectively, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) each construction services Contract, each interconnection Contract, each electricity transmission Contract, and each Contract concerning the purchase and sale of energy (other than this Agreementwith respect to station service) and/or any energy-related attributes (including renewable energy credits), including any energy hedge agreement, in each case other than Contracts that is required are not material to be filed by the Company as a material contract pursuant to Item 601(b)(10) Entities and the conduct of Regulation S-K of the SEC but is not so filedtheir business;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence each Contract set forth on Section 6.11(a) of Indebtedness or agreement providing for Indebtedness in excess of $100,000the Company Disclosure Schedule;
(iii) each operation, maintenance and management Contract that is material to the operation of the Company Entities or under which aggregate payments in excess of $[***] were made by a Company Entity during the twelve (other than 12) months prior to the date of this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement each Third Party Contract which provides for aggregate future payments to or similar from any Company Entity in excess of $[***] in any calendar year;
(v) each Contract with a Governmental Entity which provides for the acquisition or disposition of any business (A) involving future performance whether by the Company merger, sale of stock, sale of assets, or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Timeotherwise) or (B) that contains any covenant which materially restricts in any respect the operations or conduct of the Company Entities from competing or engaging in any of activity or business, including restricting a Company Entity from conducting its Subsidiaries business in any particular location, or with any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)Person, or granting any Person exclusive rights to provide any goods or services with respect to a business that, in any such each case, which is material to the Company and its SubsidiariesEntities, taken as or imposes any material penalty for the use of any other provider of goods or services, or grants to any Person a whole;
(v) any Contract containing covenants binding upon the Company, right of first refusal or right of first offer on any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of assets material to the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessEntities;
(vi) each (i) Contract evidencing any outstanding Indebtedness for borrowed money with a principal balance in excess of $[***], or (ii) each Contract with respect under which any Company Entity has extended credit to a joint venture or partnership formed under the laws any Person in an amount in excess of any applicable jurisdiction$[***] of committed credit;
(vii) each Contract with a Third Party providing for the formation, creation, governance, economics or control of any Contract that would prevent partnership, joint venture, limited liability company, consortium or materially delay similar arrangement of any of the Company from performing its obligations under this Agreement in any material respectEntities that is material;
(viii) any ContractContract (or group of substantially similar Contracts) between a Company Entity and a Third Party, excluding any purchase order or similar documentation that does not contain material terms which principal purpose is to provide an indemnity in favor of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;such Third Party exceeding $[***]; and
(ix) any each material Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to documenting the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);Tax Equity Transactions.
(xb) any Government Contract;
(xii) any Related Party Contract;
All Material Contracts have been Made Available to Purchaser, and (xiiii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) all Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of providing for aggregate future payments in the future in excess of $100,000 per annum [***] have been Made Available to Purchaser, except for such Contracts that do not, in the aggregate (together with any such Contracts not Made Available to Purchaser under the Other Purchase Agreement), provide for future non-contingent payments or termination for convenience payments in excess of $500,000 during the life of the Contract. Each such Contract described in clauses [***].
(ic) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language Except as set forth in Section 3.9(a)), whether or not set forth on Section 3.9(a4.12(c) of the Company Disclosure LetterSchedule, is referred to herein as a “no Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, Entity (i) neither the Company nor any is, or, but for a requirement that notice be given or that a period of its Subsidiaries is (andtime elapse or both, to the Knowledge of the Companywould be, no other party is) in material breach or material default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Companyapplicable Seller, no other party has threatened to terminate, any Company Material Contract is in material breach of or in material default under any such Material Contract, (ii) has any indemnity obligations under any Material Contract (except for those relating to Support Obligations) that are not related to a breach or default and that are expected to result in a liability in excess of $[***] in the aggregate or (iii) has any obligation under any Contract which provides for the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets, or otherwise) for any remaining portion of the purchase price, including any earn-outs or deferred compensation. All of the Material Contracts are legal, valid and binding obligations of the applicable Company Entities and, to the Knowledge of the applicable Seller, the other parties thereto, and are enforceable (except as the enforceability thereof may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws affecting creditors’ rights generally and to general principles of equity, regardless of whether such enforceability is considered in any Actions or Proceedings in equity or at law).
(d) Section 4.12(d) of the Company Disclosure Schedule contains, with respect to each Project energy offtake agreement, a true and complete list of the actual commercial operation date under each such agreement.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Clearway Energy, Inc.), Purchase and Sale Agreement (Clearway Energy LLC)
Material Contracts. (a) Except as filed as exhibits to the Company SEC Documents, Section 3.9(a) 4.14 of the Company Disclosure Letter Schedule sets forth a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its the Company Subsidiaries is a party or by which any of the Company, any of the Company Subsidiaries, or any of their respective properties or assets is subjectare bound, which, as of the date of this Agreement:
(i) Contract is a “material contract” (other than this Agreement) that as such term is required to be filed by the Company as a material contract pursuant to defined in Item 601(b)(10) of Regulation S-K of the SEC but is not so filedExchange Act);
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness involves annual expenditures in excess of $100,000250,000;
(iii) is a Contract (other than this Agreement) for the sale of any of its the assets after of the date hereof (Company or any of the Company Subsidiaries other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)in excess of $250,000 or for the grant to any Person of any preferential rights to purchase any of its assets;
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance relates to any acquisition by the Company or any of its the Company Subsidiaries of any operating business or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts Equity Interests in any respect the operations other Person, in each case, that contain representations, warranties, covenants, indemnities or conduct other obligations of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeSubsidiaries that are still in effect;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, gives rise to liabilities or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability obligations of the Company or any of its the Company Subsidiaries in excess of $500,000, other than a Company Benefit Plan listed on Section 4.16(a) of the Company Disclosure Schedule;
(vi) contains any non-compete, exclusivity, most favored nation or such Affiliate similar provisions that restrict the Company with respect to compete the conduct of any line of business or conduct of business in any business, geographical area or with any Person Person;
(vii) relates to the incurrence, assumption, guarantee or in any geographic area, except for any such Contract that may be canceled without penalty provision by the Company or any of its the Company Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) Indebtedness, or provides for imposition of a Lien on any Contract that would prevent or materially delay of the assets of the Company from performing its obligations under this Agreement or any Company Subsidiary, in any material respecteach case, involving amounts in excess of $100,000, other than accounts receivable and payable incurred or arising in the ordinary course of business;
(viii) is entered into with any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier AgreementGovernmental Authority;
(ix) any is a Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material pursuant to the Company and its Subsidiaries taken as a whole, or that is material to which the Company or its any of the Company Subsidiaries (A) is granted a license or right to use, or covenant not to be sued under, any Intellectual Property (excluding licenses for commercially available, off-the-shelf Software and purports Open Source Software) or (B) grants a license or right to bind their respective Affiliates use, or covenant not to be sued under, any Intellectual Property (including Parent other than non-exclusive licenses granted to customers of the Company or its Affiliates after any of the Effective TimeCompany Subsidiaries in the ordinary course of business), in each case (A) and (B), solely to the extent that such license, right or covenant is provided pursuant to a Contract which requires payments or other consideration to or from any third Person in excess of $250,000 in any year;
(x) is an individual employment Contract or Contract with an individual independent contractor or individual consultant, or any Government Contractsimilar Contract which is not cancellable with less than 60 days’ notice without penalty or the acceleration or payment of any compensation or benefits thereunder;
(xi) any Related Party Contractrelates to a partnership, joint venture, strategic alliance, profit sharing or similar arrangement or proprietary information;
(xii) is a Contract with any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by current executive officer of the Company of rights inCompany, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers any member of the Company Board or its Subsidiaries; andany holder of 5% or more of the Company Common Stock on a fully diluted basis, or any Affiliate of the foregoing (other than a Company Benefit Plan that is listed on Section 4.16(a) of the Company Disclosure Schedule);
(xiii) is a collective bargaining agreement or other Contracts Contract with any labor union or other employee representative group;
(xiv) is a Contract under which a consent of, or notice to, any party other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company or a Company Subsidiary is required in connection with the Transactions;
(xv) is a Contract providing for incurrence of any fees and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations expenses payable to third parties (including “earnout” all fees, expenses, disbursements and other similar amounts payable to attorneys, financial advisors or other contingent payment obligationsaccountants) that would reasonably be expected to result in the receipt or making incurred by the Company or any of its the Company Subsidiaries of payments in connection with the future in excess of $100,000 per annum Transactions or $500,000 during otherwise relating to the life negotiation, documentation or consummation of the ContractTransactions, this Agreement or of any documents or agreements contemplated hereby, or any retention or transaction bonus or change of control agreements with any Employee or board member, or any management fees owing to any stockholder; or
(xvi) is a Contract for the provision of products or services with any Major Customer or Major Supplier. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) contract of the lead-in language type described above in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, 4.14 is referred to herein as a “Company Material Contract.”
(b) True ” Section 4.14 of the Company Disclosure Schedule identifies those Material Contracts for which the consent of, or, or prior notice to, the counterparty of the Company or any Company Subsidiary is required for the consummation of the Transactions. Except as set forth in Section 4.14 of the Company Disclosure Schedule, true and correct in all material respects copies or forms of each Company Material Contract have been made available to Parent Parent. Except for expirations or publicly filed terminations in the ordinary course of business in accordance with the SEC prior to the date hereof. Except terms of such Material Contract or as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither each Material Contract is valid and binding on the Company nor any of its Subsidiaries is (or applicable Subsidiary and, to the Knowledge of the Company, no each other party is) in default under any Company Material Contractthereto, (ii) each of the Company Material Contracts is as applicable, and in full force and effecteffect (except as such enforceability may be limited by the Bankruptcy and Equity Exceptions), and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and (ii) to the Knowledge of the Company, of the other parties theretothere is no event or condition which has occurred or exists, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to which constitutes or would reasonably be performed by them to date under the Company Material Contracts and are not expected constitute (with or without notice, the lapse happening of time any event or the giving passage of notice, time) a material default or both) in breach thereunder and (iv) neither under any Material Contract by the Company nor or its Subsidiary. There are no and, since January 1, 2021, there have not been, any of its Subsidiaries has received any notice of termination material disputes or material indemnity claims with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract (or any predecessor Contract).
Appears in 2 contracts
Sources: Merger Agreement (AdTheorent Holding Company, Inc.), Merger Agreement (AdTheorent Holding Company, Inc.)
Material Contracts. (ai) Except for Contracts set forth in Section 3.9(a3.2(k) of the Company its Disclosure Letter sets forth a complete and correct list Letter, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or neither it nor any of its Subsidiaries has Subsidiaries, nor any current of their respective assets, businesses or future rightsoperations, obligations is a party to, or liabilities is bound or affected by, or receives benefits under, (A) any Contract relating to which the Company borrowing of money by it or any of its Subsidiaries or the guarantee by it or any of their respective properties or assets is subject:
(i) Contract its Subsidiaries of any such obligation (other than this Agreement) that is required Contracts pertaining to be filed by the Company as a material contract pursuant fully- secured repurchase agreements, trade payables and Contracts relating to Item 601(b)(10) of Regulation Sborrowings, deposit-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage takings or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment guarantees made in the ordinary course of business consistent with past practice);
, (ivB) settlement agreement any Contract containing a non-compete or similar Contract with a Governmental Entity (A) involving future performance by client or customer non-solicit requirement or any other provisions that limit the Company ability of it or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts to compete in any respect the operations line of business or conduct with any Person, or that involve any restriction of the Company geographic area in which, or method by which, it or any of its Subsidiaries may carry on its business (other than as may be required by Law or any Governmental Authority) or which requires referrals of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, business or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company requires it or any of its Subsidiaries or such Affiliate Affiliates to compete in any business, or with make available investment opportunities to any Person on a priority, equal or in any geographic areaexclusive basis, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(viC) any Contract with respect to a joint venture or partnership formed under the laws employment of any applicable jurisdiction;
directors, executive officers or employees, or with any consultants that are natural Persons involving the payment of U.S.$500,000 or more per annum, (viiD) any Contract which, upon the execution or delivery of this Agreement or consummation of the transactions contemplated by this Agreement will (either alone or upon the occurrence of any additional acts or events) result in any payment (including severance payment) becoming due from it or any of its Subsidiaries, (E) any Contract that would prevent could reasonably be expected to prohibit, delay or materially delay impair the Company from performing its obligations under this Agreement in consummation of any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the partiesTransactions, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ixF) any Contract (or group of Contracts with the same party (or its Affiliates) involving similar transactions) that contains involves expenditures or receipts by it or any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and of its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company in excess of rights in, to or under Company Intellectual Property U.S.$5,000,000 per year not entered into in the ordinary course of business consistent with past practice practice, (G) any Contract with customers an Affiliate, (H) any Contract that grants any right of first refusal, right of first offer or similar right with respect to the Company sale or other transfer of any material assets, rights or properties of it or its Subsidiaries; and
Subsidiaries or (xiiiI) other Contracts any Contract with any Governmental Authority (other than this Agreement, purchase orders in the ordinary course of business consistent routine or customary Contracts with past practice, agreements between the Company and any self-regulatory body). With respect to each of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them disclosed in its Disclosure Letter pursuant to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.this Section 3.2(k)(i):
Appears in 2 contracts
Sources: Transaction Agreement, Transaction Agreement
Material Contracts. (ai) The Company Benefit Plans, the Contracts filed as exhibits to the Filed SEC Documents and those agreements listed in Section 3.9(a3.01(j) in the Company Disclosure Letter (such contracts, collectively, the “Company Material Contracts”), together constitute a complete and accurate list of each of the following Contracts (without duplication) of the Company Disclosure Letter sets forth a complete and correct list as or of any of its Subsidiaries, including without limitation oral contracts within the Knowledge of the date Company, that are in effect or as to which any rights or obligations are outstanding:
(A) all Contracts that constitute a “material contract” (as such term is defined in Item 601(b)(10) of this AgreementRegulation S-K under the Securities Act) to the Company;
(B) all Contracts that constitute a contract committing to or otherwise relating to Indebtedness for borrowed money or the deferred purchase price of property (in either case, excluding whether incurred, assumed, guaranteed or secured by an asset), in each case in excess of $5,000,000;
(C) all Contracts containing provisions that limit or purport to limit, in any Contract that material respect, the ability of the 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) is sell any products, commodities or relates services of or to a Company Planany other Person, (y) relates exclusively to the BBGS Business engage in any line of business or (z) is filed as compete with or obtain products, commodities or services from any other Person or limit the ability of any Person to provide products, commodities or services to the Company or any of its Subsidiaries, in each case, in any geographic area or during any period of time;
(D) 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 penalty, acceleration or other liability to the Company or any of its Subsidiaries, upon notice of 180 days or fewer;
(E) all Contracts that concern the distribution by third 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;
(F) all Contracts that contain any provision providing for an exhibit to “earn-out,” contingent purchase price or similar contingent payment obligation on the part of any Company SEC Documentor 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), in each Contract described in case as a result of the consummation of the transactions contemplated by this Section 3.9(aAgreement (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 current 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 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 rightsdisposition or acquisition of any assets, obligations properties or liabilities or to which the Company or any operating business of the Company, its Subsidiaries or any of their respective properties other Person or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indentureentity, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in each case valued in excess of $100,000;5,000,000; and
(iiiM) Contract (all other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventoryContracts, product whether or obsolete equipment not made in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) business, that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is are material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon , or the Company, any conduct of the business of the Company and its Subsidiaries, taken as a whole, or the absence of which would, in the aggregate, have a Material Adverse Effect.
(ii) Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) neither the Company nor any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability 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 its Subsidiaries time or such Affiliate to compete in any business, the giving of notice or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty both would constitute a default thereunder by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or Subsidiaries; (B) the Company and each of its Subsidiaries has in all respects performed all obligations required to be performed by it to date under each Company Material Contract; and (C) each Company Material Contract is a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights valid and binding obligation of the Company or “most favored nations” provisions or minimum use or supply requirements that are material to the Subsidiaries of the Company party thereto, is in full force and effect and is enforceable against the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no the other party isparties 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 default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, relating to creditors’ rights generally and is the valid, binding (y) equitable remedies of specific performance and enforceable obligation injunctive and other forms of the Company and its Subsidiaries, equitable relief may be subject to equitable defenses and to the Knowledge discretion of the Companycourt before which any proceeding therefor may be brought, of the other parties thereto, subject and except to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the extent that any such Company Material Contracts and are not (Contract has previously expired in accordance with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contractterms.
Appears in 2 contracts
Sources: Merger Agreement (Paxar Corp), Merger Agreement (Avery Dennison Corporation)
Material Contracts. (a) Section 3.9(a3.23(a) of the Company Disclosure Letter sets forth a complete and correct list forth, as of the date of this Agreement, excluding a complete and correct 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:
(i) each Contract that (A) limits or restricts in any material respect the Company or any of its Subsidiaries (or would, from and after the Effective Time, limit or restrict the Company or any of its Subsidiaries in any material respect) from competing in any line of business or with any Person or competing or operating in any geographic region, (B) contains material exclusivity obligations binding on, the Company or any of its Subsidiaries or (C) grants any material “most favored nation” or similar right in favor of any third party;
(ii) each Contract that is a joint venture or partnership agreement or provides for a similar arrangement that is material to the Company and its Subsidiaries, taken as a whole, and any Contract that relates to the management, governance or control of, or the economic rights or obligations of the Company or any of its Subsidiaries in, any such joint venture, partnership or other similar arrangement;
(iii) each Contract that is a loan, guarantee of indebtedness or credit agreement, note, bond, mortgage, indenture, security agreement or other binding commitment or other Contract relating to indebtedness for borrowed money, in each case in an amount in excess of $5 million individually other those between the Company and its wholly owned Subsidiaries or between its Subsidiaries);
(iv) each Contract with respect to an interest rate, currency or other swap or derivative transaction (other than those between the Company and its Subsidiaries or between its Subsidiaries) with a fair value in excess of $5 million individually;
(v) each Contract that is an acquisition agreement or a divestiture agreement pursuant to which (A) the Company reasonably expects that it is required to pay total consideration (including assumption of debt) after the date of this Agreement in excess of $5 million, (B) any other Person has the right to acquire any assets of the Company or any of its Subsidiaries after the date of this Agreement with a fair market value or purchase price of more than $5 million or (C) the Company or any of its Subsidiaries has any ongoing indemnification or other obligations as of the date of this Agreement, which are reasonably expected to result in payments in excess of $5 million, excluding, in each case, acquisitions or dispositions of (x) is supplies, inventory or relates to a Company Plan, products in connection with the conduct of the Company’s and its Subsidiaries’ business in the ordinary course consistent with past practice or (y) relates exclusively to supplies, inventory, products, equipment, properties or other assets that are obsolete, worn out, surplus or no longer used or useful in the BBGS Business conduct of business of the Company or its Subsidiaries;
(zvi) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under pursuant to which the Company or any of its Subsidiaries has any current continuing “earn-out” or future rights, similar obligations or liabilities or that could result in payments in excess of $5 million in the aggregate;
(vii) each Contract pursuant to which the Company or any of its Subsidiaries is licensed or licenses, or grants or receives a covenant not to ▇▇▇ or other right under any Intellectual Property material to the Company and its Subsidiaries, taken as a whole, in each case, to or from any third party, excluding (A) shrink wrap, click wrap, of their respective properties or assets is subject:
(i) Contract (off-the-shelf software licenses, and any other than this Agreement) license of uncustomized software that is required commercially available to be filed by the Company as a material contract pursuant public generally, in each case with one-time or annual license, maintenance, support and other fees of $150,000 or less, and (B) licenses of uncustomized Intellectual Property that are embedded in, built-in to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedor otherwise incorporated with or into manufacturing equipment or manufacturing processes;
(iiviii) indentureeach Contract with one of the ten largest customers (by revenue) of the Company and its Subsidiaries, credit agreementtaken as a whole (each, loan agreementa “Material Customer”), security agreementor one of the ten largest vendors (by amounts paid) of the Company and its Subsidiaries, guaranteetaken as a whole (each, notea “Material Supplier”), mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000each case, based on the twelve-month period ended December 31, 2021;
(iiiix) each Contract (other than this Agreement) for the sale involving any resolution or settlement of any of its assets after the date hereof (other than sales of inventory, product actual or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) threatened Proceeding involving future performance by the Company or any of its Subsidiaries or any involving (A) a payment in excess of their respective Affiliates (including Parent $5 million and its Affiliates after the Effective Time) entered into since January 1, 2019 or (B) that restricts in any respect the operations ongoing requirements or conduct of restrictions on the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is are material to the Company and its Subsidiaries, taken as a whole;
(vx) any each Contract containing covenants binding upon between the Company, Company or any of its Subsidiaries, Subsidiaries and a Governmental Authority (other than in any such Governmental Authority’s capacity as a customer or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability supplier of the Company or any of its Subsidiaries Subsidiaries) requiring payment by or such Affiliate to compete the Company and its Subsidiaries, taken as a whole, in any business, or with any Person or in any geographic area, except for any such excess of $5 million per annum;
(xi) each Real Property Lease and each Contract that may be canceled without penalty by pursuant to which the Company or any of its Subsidiaries upon notice of 60 days is a lessor or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws lessee of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contractmachinery, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses equipment or other non-exclusive grants personal property requiring by the Company of rights in, its terms aggregate payments by or to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum 5 million for the twelve-month period ended December 31, 2021;
(xii) each Contract which restricts the payment of dividends or distributions in respect of any Company Securities or any Company Subsidiary Securities;
(xiii) each Contract that is a CBA;
(xiv) each employment Contract that materially varies from the Company’s standard form employment offer letter and (A) provides for annual base salary in an amount greater than $500,000 during 250,000, or (B) provides for any change of control retention or severance payments or benefits; and
(xv) each Contract that is required to be filed by the life Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the ContractSecurities Act. Each such Contract of a type described in clauses (i) – through (xiiixv) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract”.”
(b) True and correct in all material respects copies of each Except for any Company Material Contract have been made available to Parent that has terminated or publicly filed expired in accordance with the SEC prior to the date hereof. Except its terms, and except as would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect, (i) neither the each Company nor any of its Subsidiaries Material Contract is (valid and binding and in full force and effect and, to the Knowledge of the Company, no enforceable against the other party is) or parties thereto in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and accordance with its Subsidiaries, and to the Knowledge of the Company, of the other parties theretoterms, subject to the General Enforceability Exceptions. Except for breaches, (iii) the Company and its Subsidiaries violations or defaults which have performed all obligations required to be performed by them to date under the not had a Company Material Contracts and are not (with or without the lapse of time or the giving of noticeAdverse Effect, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries Subsidiaries, nor to the Knowledge of the Company any other party to a Company Material Contract, is or has received any notice (written or oral) that it is in violation of termination with respect toor in default under any provision of such Company Material Contract, and, to the Knowledge of the Company, no party event has threatened to terminateoccurred that would result in a violation of, or a default under, any Company Material ContractContract (in each case, with or without notice, the lapse of time or both) by the Company or any of its Subsidiaries or, to the Knowledge of the Company, any other party thereto. To the Knowledge of the Company, as of the date hereof, neither the Company nor any of its Subsidiaries has received written notice from any other party to a Company Material Contract that such other party intends to terminate, not renew, or renegotiate in any material respects the terms of any such Company Material Contract (except in accordance with the terms thereof). True and complete copies of the Company Material Contracts and any material amendments thereto, in each case as in effect as of the date of this Agreement, have been made available to Parent prior to the date of this Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Domtar CORP), Merger Agreement (Resolute Forest Products Inc.)
Material Contracts. (a) Section 3.9(a3.13(a) of the Company Disclosure Letter Schedule sets forth a complete and correct list as of all of the date following Contracts to which any of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company Group is a party or by which any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries Group or any of their respective properties or assets is subject:
bound (i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing except for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than purchase orders and sales of inventory, product or obsolete equipment orders entered into in the ordinary course of business consistent with past practice);business) as of the date hereof (each, a “Company Material Contract”):
(ivi) settlement agreement or similar any Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)limits, in any such casematerial respect, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, freedom or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or Group to conduct any line of its Subsidiaries or such Affiliate to compete in any business, operate any aspect of the business of the Company Group or compete with any Person or in any geographic area, except for geographical area or solicit or hire employees or that grants any such Contract that may be canceled without penalty by customer or supplier of the Company Group exclusivity or a right to “most favored nation” pricing terms, or obligates the Company Group to purchase requirements or minimum amounts, excluding (i) geographical or field of use restrictions imposed by any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract Intellectual Property license agreements with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms use of the relationship between the partiesIntellectual Property subject thereto and (ii) reasonable limitations on use in connection with confidentiality, that is (A) a Material Customer Agreementresearch, consulting, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property agreements entered into in the ordinary course of business consistent with past practice with customers practice;
(ii) any Contract for the sale of any of the assets of the Company or its Subsidiaries; and
(xiii) other Contracts Group (other than this Agreement, purchase orders the sale of inventory in the ordinary course of business consistent with past practice) for consideration in excess of $50,000;
(iii) any Contract with a Company Significant Supplier or a Company Significant Customer;
(iv) any Contract related to any joint venture, agreements between partnership, strategic alliance or similar arrangement with another Person;
(v) any Contract relating to the Company and any acquisition or disposition (by merger, purchase of its wholly owned Subsidiaries stock or between assets or otherwise) by any of the Company’s wholly owned SubsidiariesCompany Group of any operating business or material assets or the capital stock of any other Person that contains material ongoing obligations or Liabilities of the Company Group;
(vi) that contain obligations any Contract relating to (including “earnout” A) the incurrence, assumption or guarantee of any Indebtedness or (B) imposing a Lien (other contingent payment obligationsthan a Permitted Lien) that would reasonably be expected on any of the material assets or properties of any of the Company Group, in each case having a principal amount in excess of $50,000;
(vii) any Contract (other than a Benefit Plan), for the employment of any employee or natural person independent contractor of the Company Group providing services to result any of the Company Group with annual base salary in excess of $100,000;
(viii) any Contract pursuant to which any of the Company Group grants to any Person or is granted by any Person any license, sublicense, right, consent or non-assertion under or with respect to any Intellectual Property, other than (A) Incidental Licenses and (B) non-exclusive licenses to customers granted in the receipt or making by ordinary course of business and consistent with past practices;
(ix) any other Contract, other than a Benefit Plan, that obligates any of the Company Group to pay, or that entitles any of its Subsidiaries the Company Group to receive, an amount in cash, goods, services or materials of payments $1,000,000 or more in any consecutive twelve (12)-month period that is not terminable without penalty upon less than ninety (90) days prior written notice by any of the future Company Group;
(x) any Contract under which the Company Group is obligated to make any capital commitment or expenditure in excess of $100,000 per annum individually or $500,000 during 1,000,000 in the life of the Contract. Each such Contract described in clauses aggregate;
(ixi) – any Related Party Agreement;
(xii) any Real Property Lease;
(xiii) any collective bargaining agreement or other Contract with a labor union;
(xiv) any Contract that is a lease of, or permits any third party to hold or operate, any tangible property (other than real property), owned or controlled by the Company Group, except for any Contract under which the aggregate annual rental payments do not excluded exceed $100,000;
(xv) any Contract related to the agreement to settle or compromise any pending or threatened Action or investigation and under which any of the Company Group has continuing obligations;
(xvi) any Contract the primary purpose of which is to bind any of the Company Group to indemnify or assume liabilities of any other Person (including any D&O Indemnitee), with such obligation continuing after the date hereof, other than customary indemnification provisions in commercial Contracts entered into in the ordinary course of business consistent with past practice;
(xvii) any Contract granting to any Person a right of first refusal or right of first offer on the sale of any material part of any of the business, assets or properties of any of the Company Group;
(xviii) any Contract pursuant to clause (x) or (y) which any of the lead-Company Group has agreed to loan any Person any amount or otherwise make any investment in language any other Person;
(xix) any Contract with any Governmental Authority; and
(xx) any Contract pursuant to which any of the Company Group may be obligated to pay or incur transaction fees and expenses in Section 3.9(a))respect of this Agreement and the transactions contemplated by this Agreement, whether including those of all attorneys, accountants, actuaries, consultants, experts, investment bankers or not other professionals, if any, engaged by or on behalf of the Company Group in respect of this Agreement and the transactions contemplated by this Agreement.
(b) Except as set forth on Section 3.9(a3.13(b) of the Company Disclosure LetterSchedule, is referred (i) since January 1, 2021, none of the Company Group has received or been in possession of any written notice of any intention to herein as terminate, repudiate or disclaim, or of any default or event that (with due notice or lapse of time or both) would constitute a “default by any of the Company Group under any Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract , other than defaults that have been made available to Parent cured or publicly filed with the SEC prior to the date hereof. Except as waived in writing or would not reasonably be expected to havebe material to the business of the Company Group as a whole, individually or in the aggregate, a (ii) each Company Material Adverse EffectContract is a legal, valid and binding obligation of the Company Group, as applicable, and is in full force and effect (except to the extent subject to, and limited by, the Enforceability Exceptions), (iiii) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) material breach in or material default under any Company Material Contract, (ii) each Contract by any of the Company Material Contracts is in full force and effectGroup exists (with or without the lapse of time or the giving of notice, or both), and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and (iv) to the Knowledge of the Company, of the (A) no other parties thereto, subject party to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the any Company Material Contracts and are not Contract is (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, or in default under any Company Material Contract; and (B) no event or circumstance has occurred that (with or without the lapse of time or the giving of notice, or both) would reasonably be expected to constitute a default or breach under any Company 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 material benefit thereunder. Company has made available to Parent true, correct and complete copies of each of the Company Material Contracts, together with all amendments, modifications or supplements thereto, to the extent such amendments, modifications or supplements are in Company’s possession.
Appears in 2 contracts
Sources: Merger Agreement (Lawson Products Inc/New/De/), Merger Agreement (Lawson Products Inc/New/De/)
Material Contracts. (a) Section 3.9(aSchedule 4.15(a) of the Company Disclosure Letter sets forth a complete and correct list as of each of the date following types of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or Contracts to which the Company is a party or any of its Subsidiaries by which the Company is bound and that have not been fully performed or any of their respective properties have not otherwise expired or assets is subject:been terminated (collectively, the “Material Contracts”):
(i) Contract Contracts that involve aggregate annual payments by or to the Company of more than $250,000 (other than this Agreement) that is required to be filed by purchase orders entered into in the Company as a material contract pursuant to Item 601(b)(10) Ordinary Course of Regulation S-K of the SEC but is not so filedBusiness and other than employment Contracts disclosed on Schedule 4.16(a));
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage Contracts that relate to or other evidence of Indebtedness or agreement providing for Indebtedness in excess pursuant to which a Lien has been placed on any material asset or property of $100,000the Company;
(iii) Contract Contracts that contain any (other than this AgreementA) for covenant limiting, in any material respect, the sale ability of the Company to engage in any line of business or compete with any Person or (B) obligation on the part of the Company to indemnify any Person or (C) guaranty by the Company of the obligations of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)Person;
(iv) settlement agreement Contracts that create or similar Contract with relate to a Governmental Entity (A) involving future performance by partnership or joint venture to which the Company is a party, or pursuant to which the Company has any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts ownership interest in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeother Person;
(v) Contracts for (A) the disposition of the capital stock of a Seller or the Subsidiary or the disposition of any Contract containing covenants binding upon material Transferred Asset (other than inventory disposed of in the CompanyOrdinary Course of Business), (B) the acquisition of any capital stock or other equity interest in, or material assets or business of, any other Person, in each case, other than in the Ordinary Course of its SubsidiariesBusiness, or (C) any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company merger, recapitalization, redemption, reorganization or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessother similar Contract;
(vi) any Contract with respect Contracts relating to a joint venture the employment or partnership formed under the laws compensation of any applicable jurisdictionemployee of the Company (other than Company Benefit Plans that are disclosed on Schedule 4.16(a)) that are not terminable at-will without liability to the Company;
(vii) any Contract that would prevent or materially delay Contracts under which the Company from performing its obligations under this Agreement in has, directly or indirectly, made any material respectadvance, loan or extension of credit to any Person;
(viii) any Contract, excluding any purchase order Contracts for capital expenditures or similar documentation that does not contain material terms the acquisition or construction of fixed assets for the benefit and use of the relationship between Company or the partiesSubsidiary, that is (A) a Material Customer Agreement, the performance of which involves consideration in excess of $150,000 annually or (B) a Material Supplier Agreement$300,000 in the aggregate;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)concerning Licensed Intellectual Property involving consideration in excess of $100,000 per year;
(x) any Government ContractContracts for the purchase or sale of real property;
(xi) any Related Party ContractContract between the Company and any Affiliate of the Company;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent Contract with past practice with customers of the Company or its Subsidiariesa Governmental Body; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between commitment to enter into any agreement of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract type described in clauses subsections (i) – through (xiii) (that is not excluded pursuant to clause (x) or (yxii) of the lead-in language in this Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract4.15.”
(b) True and correct in all material respects copies of each The Company Material Contract have been has made available to Parent or publicly filed with Purchaser true and complete copies of all of the SEC prior to the date hereofMaterial Contracts. Except as would not reasonably be expected to haveset forth on Schedule 4.15(b), individually or all of the Material Contracts are in full force and effect and are the aggregatelegal, a Company Material Adverse Effect, (i) neither valid and binding obligation of the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) enforceable against the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened the other parties thereto in accordance with their respective terms, subject to terminateapplicable 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 set forth on Schedule 4.15(b), neither the Company nor, to the Knowledge of the Company, any Company counterparty (with or without notice or lapse of time, or both) is in breach or default in any material respect under any Material Contract.
Appears in 2 contracts
Sources: Purchase Agreement, Purchase Agreement (Perrigo Co)
Material Contracts. (a) Section 3.9(a4.7(a) of the Company Seller Disclosure Letter Schedules sets forth a true, complete and correct list as of the date of this Agreement, Agreement of the following types of subsisting Contract to which any member of the Company Group is a party (excluding any Contract that Contracts (x1) to which Falikang is the sole Company Group party and Purchaser or relates to one of its Affiliates is a Company Plancounterparty, (y2) relates exclusively to the BBGS Business or (z) is filed as an exhibit to entered into between any Company SEC Document, member of each Contract described in this Section 3.9(a) under which the Company Group, on the one hand, and [*], on the other hand, and (3) entered into between any member of the Company Group, on the one hand, and Purchaser and its Affiliates, on the other hand) or by which it or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:bound (all such Contracts, all Contracts required to be listed in Section 4.7(a) of the Seller Disclosure Schedules and all Contracts arising after the date hereof and in effect at the time of the Closing that if in existence on the date hereof would have been required to be listed in Section 4.7(a) of the Seller Disclosure Schedules, together, the “Material Contracts”):
(i) Contract Contracts (other than this AgreementA) that is required to be filed by limiting the freedom or right of any member of the Company as a Group to engage in any line of business or to compete with any other Person, in any location or line of business or therapeutic area or make use of any of their Intellectual Property rights, (B) containing any “most favored nation” terms and conditions granted by any member of the Company Group, (C) containing exclusivity obligations or otherwise limiting [*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material contract and (ii) would likely cause competitive harm to the company if publicly disclosed. the freedom or right of any member of the Company Group to Exploit any products or services for any other Person, (D) pursuant to Item 601(b)(10) of Regulation S-K which any member of the SEC but Company Group is not so filedobligated to purchase a minimum quantity of goods or services from another Person, or (E) granting rights to any Third Party to, or otherwise restricting, the Exploitation, sale, supply or license of any Product;
(ii) indentureContracts (including funding agreements) between any member of the Company Group and any Governmental Authority, credit agreement, loan agreement, security agreement, guarantee, note, mortgage university or other evidence academic institution or between any member of Indebtedness the Company Group and any Third Party that is a subcontract under a Contract between such Third Party and any Governmental Authority, university or agreement providing for Indebtedness other academic institution (in excess of $100,000each case, other than medical foundations or associations that are non-profit in nature);
(iii) Contract (other than this Agreement) Contracts between any member of the Company Group and any Third Party for the sale of any of its assets after the date hereof (other than sales of inventoryjoint venture, partnership, joint product development, collaboration, strategic alliance or obsolete equipment in the ordinary course of business consistent with past practice)co-marketing arrangement;
(iv) settlement agreement Contracts involving the disposition or similar Contract with a Governmental Entity (A) involving future performance by acquisition of any product line, business or significant portion of the Company material assets, properties or business of any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct member of the Company Group, or any of its Subsidiaries merger, consolidation or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholesimilar business combination transaction;
(v) any Contract containing covenants binding upon relating to the Companyissuance, any of its Subsidiaries, acquisition or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty divestiture by the Company of Company Shares or any with respect to the voting of its Subsidiaries upon notice of 60 days or lessCompany Shares;
(vi) any Contract with that prohibits or restricts the declaration or payment of dividends or distributions in respect to a joint venture or partnership formed under of the laws capital stock of any applicable jurisdictionmember of the Company Group, the pledging of the capital stock or other equity interests of any member of the Company Group or the issuance of any guaranty by any member of the Company Group;
(vii) Contracts containing any Contract that would prevent put, call, right of first refusal, right of first negotiation or materially delay right of first offer in favor of any Person other than any member of the Company from performing its obligations under this Agreement in any material respectGroup;
(viii) Contracts evidencing Indebtedness of any Contract, excluding any purchase order or similar documentation that does not contain material terms member of the relationship between Company Group exceeding [*] other than incurred in the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier AgreementOrdinary Course of Business;
(ix) Contracts involving Encumbrances (other than any Contract that contains Permitted Encumbrance and any exclusivity rights Company Group Encumbrances) upon any real property or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)other assets;
(x) Contracts involving any Government Contractresolution or settlement of any Proceeding or other dispute under which any member of the Company Group has any outstanding payments, Liabilities or other obligations or that involves an admission of wrongdoing by any member of the Company Group;
(xi) Contracts with any Related Party Contract;
(xii) broker, finder or similar agent or any Company IP Agreements other than (A) Shrink-Wrap Licenses Person which will result in an obligation of Purchaser or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers any member of the Company Group being obligated to pay any finder’s fee, brokerage fees or its Subsidiaries; and
(xiii) other Contracts (other than commission or similar payment in connection with the transactions contemplated by this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True True, complete and correct copies of all written Material Contracts, in each case, including all material respects copies of each Company Material Contract amendments thereto, have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to havePurchaser.
(c) Each subsisting Material Contract is in full force and effect and is legal, individually or in the aggregatevalid, a Company Material Adverse Effect, (i) neither binding and enforceable against the Company nor any of its Subsidiaries is (and, to the Company’s Knowledge each other party thereto, in accordance with their terms except as enforcement may be limited by the Enforceability Exceptions. Except as set forth in Section 4.7(c) of the Seller Disclosure Schedules, the Company is not, and to the Company’s Knowledge, no other party is, in Default [*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) in default under any Company Material Contract, not material and (ii) each would likely cause competitive harm to the company if publicly disclosed. in any material respect and there exists no such material Default under any Material Contract. No written notice of any claim of Default under, or termination of, a Material Contract has been made or received by the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, andor, to the Knowledge of the Company’s Knowledge, no party has been threatened to terminate, any Company Material Contractin writing.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a2.15(a) of the Company Disclosure Letter Schedule sets forth a correct and complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectbelow:
(i) each Contract (other than this Agreement) that is required not fully performed providing for the performance of services or delivery of goods or materials by or to any Group Company and which requires consideration to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiariesfurnished, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that which would reasonably be expected to result in consideration to be furnished, to or by any Group Company having a value in excess of Six Hundred Fifty Thousand Dollars ($650,000), in the receipt aggregate for such Contract, during the twelve (12)-month period either ending on or making commencing on the date of this Agreement;
(ii) each Contract that contains a covenant restricting the ability of any Group Company to compete with any Person, to solicit any Person, or to solicit or hire employees or other Persons, or to engage in any business or activity in any geographic area or pursuant to which any benefit is required to be given or lost as a result of such competing or engaging;
(iii) each Contract relating to Indebtedness of any Group Company or to mortgaging, pledging or otherwise placing a Lien (other than a Permitted Lien) on any of any Group Company’s assets or properties;
(iv) each Contract providing for the guaranty by any Group Company of any Liability of any Person; or any Contract that includes any requirement that any Group Company provide indemnification to or otherwise support the business or Liabilities of any other Person (other than in the Ordinary Course in connection with provision of services to customers and the procurement of services and equipment from suppliers);
(v) each Contract which, when taken together with all purchase orders issued thereunder, involves or results in a commitment of the Group Companies to make a capital expenditure or to purchase a capital asset involving at least Two Hundred Fifty Thousand Dollars ($250,000);
(vi) each lease for Leased Real Property;
(vii) each Contract between any Group Company and any Governmental Authority;
(viii) each Contract under which any Group Company is lessee of, or holds or operates any personal property involving an annual commitment or payment of more than One Hundred Thousand Dollars ($100,000) individually by the Company;
(ix) each Contract of the type referred to in Section 2.13(a);
(x) each Contract providing for the acquisition by any Group Company of, or disposition by any Group Company or any predecessor to the business of any Group Company of, any Person or any business, operating division, business unit or product line thereof (whether by merger, consolidation or other business combination, recapitalization, acquisition of stock or assets, or otherwise), or any equity or debt investment by any Group Company or any predecessor to the business of any Group Company in any other Person, in each case which acquisition, disposition, or investment was consummated within the last three (3) years;
(xi) each joint venture, partnership or Contract to which any Group Company is a party involving a sharing of profits, losses, costs or liabilities with any other Person;
(xii) each Contract that obligates any Group Company to obtain all or a substantial portion of its Subsidiaries requirements for any goods or services from, or supply all or a substantial portion of payments the requirements for any goods or services of, any other Person;
(xiii) each Contract of any Group Company that includes any “most-favored pricing” provision;
(A) other than the Company Benefit Plans, each Contract relating to employment, change in control, severance, retention, termination, non-competition, non-solicitation and similar matters between any Group Company and any employee of the future Group Companies, other than at-will employment Contracts that do not provide for severance or change-in-control benefits (each, an “Employment Agreement”), and (B) each Contract for the engagement by any Group Company of any Contractor who has provided services to the Company since January 1, 2015 (in this case limited to Contractors who are either individuals or where the services of a particular individual on behalf of such Contractor are contemplated by such Contract) if the compensation payable to such Contractor is or is reasonably expected to be in excess of One Hundred Thousand Dollars ($100,000 100,000) per annum year;
(xv) each collective bargaining agreement with any labor union or other employee representative of a group of employees of any Group Company relating to wages, hours and other conditions of employment;
(xvi) each Contract of any Group Company that includes a “take or pay” provision that requires minimum periodic payments or payment commitments of more than One Hundred Thousand Dollars ($500,000 during the life 100,000) to vendors or suppliers; and
(xvii) each Contract to enter into any of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractforegoing.”
(b) True Each of the Contracts required to be disclosed pursuant to Section 2.15(a) (collectively, the “Material Contracts”) is the valid, legal and correct binding obligation of the Company, in all material respects copies of each full force and effect and enforceable against the applicable Group Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company each Material Contract, (ii) each of the Company Material Contracts Contract is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of against the other parties thereto, in accordance with its respective terms (but subject to the General Enforceability Equitable Exceptions, (iii). Section 2.15(b)(i) of the Company and its Subsidiaries have performed all obligations required Disclosure Schedule sets forth a description of each oral modification to be performed by them to date under any of the Material Contracts. Except as set forth Section 2.15(b)(ii) of the Company Disclosure Schedule, no Group Company is currently renegotiating any Material Contracts and are not (with Contract or without the lapse paying liquidated damages in lieu of time performance thereunder. No Group Company is in breach or the giving of noticedefault under, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries since December 31, 2014 has received a written claim of default or breach under, any notice of termination with respect to, Material Contract and, to the Knowledge of the Company, none of the counterparties to any Material Contract is in breach of or default thereunder. Except as set forth is Section 2.15(b)(iii) of the Company Disclosure Schedule, since December 31, 2014, no party Group Company has threatened received any written notice of termination, modification, acceleration, cancellation or nonrenewal of any Material Contract.
(c) The Company has provided to terminatePurchaser a true, any correct and complete copy of each written Company Material Contract, including all amendments, waivers, supplements or modifications thereto, along with a summary of each of the material terms of each oral Company Material Contract.
Appears in 1 contract
Material Contracts. (a) Except for the contracts, agreements and other arrangements listed in Section 3.9(a) 2.16 of the Company Disclosure Letter sets forth a complete Schedule, and correct list as of the date of this Agreementcontracts, excluding any Contract agreements, or other arrangements that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or have been fully performed and with respect to which the Company has no further obligations or liabilities, the Company is not a party to or otherwise bound by any of its Subsidiaries material agreement, instrument or any of their respective properties or assets is subjectcommitment, including, without limitation, any:
(ia) Contract (other than this Agreement) that is required to be filed agreement for the purchase, sale, lease or license by or from the Company as a material contract pursuant of services, products, or assets, requiring total payments by or to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness Company in excess of $100,000;
(iii) Contract (30,000 in any instance, or entered into other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)business;
(ivb) settlement agreement requiring the Company to purchase all or substantially all of its requirements for a particular product or service from a particular supplier or suppliers, or requiring the Company to supply all of a particular customer’s or customers’ requirements for a certain service or product;
(c) agreement or similar Contract with a Governmental Entity (A) involving future performance by other commitment pursuant to which the Company has agreed to indemnify or hold harmless any of its Subsidiaries or any of their respective Affiliates other person;
(including Parent and its Affiliates after the Effective Timed) (i) employment agreement, (ii) consulting agreement or (Biii) that restricts agreement providing for severance payments or other additional rights or benefits (whether or not optional) in the event of the sale or other change in control of the Company;
(e) agreement with any respect the operations current or conduct former Affiliate, stockholder, officer, director, employee, or consultant of the Company or with any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), person in which any such case, which is material to the Company and its Subsidiaries, taken as a wholeAffiliate has an interest;
(vf) any Contract containing covenants binding upon the Companyjoint venture, any of its Subsidiaries, partnership or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessteaming agreement;
(vig) agreement with any Contract with respect to a joint venture domestic or partnership formed under the laws of foreign government or agency or executive office thereof or any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements subcontract between the Company and any of its wholly owned Subsidiaries third party relating to a contract between such third party and any domestic or between any foreign government or agency or executive office thereof;
(h) agreement imposing non-competition or exclusive dealing obligations on the Company;
(i) agreement with respect to the confidentiality of the Company’s wholly owned SubsidiariesProprietary Information (as described in Section 2.19 hereof), and the assignment to the Company of any and all rights employees of the Company might have to acquire with respect to technology, inventions, developments, etc., developed in connection with their employment with the Company; and
(j) that contain obligations (including “earnout” or other contingent payment obligations) that would agreement the performance of which is reasonably be expected likely to result in a loss to the receipt Company. The Company has made available to the Purchasers correct and complete copies (or making by written summaries of the Company material terms of oral agreements or any understandings) of its Subsidiaries of payments each agreement, instrument, and commitment listed in the future in excess of $100,000 per annum or $500,000 during the life of the ContractDisclosure Schedule, each as amended to date. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a))agreement, whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effectinstrument, and commitment is the a valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge Company’s knowledge, of the other party or parties thereto, and is in full force and effect, subject to (x) applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and moratorium laws and other similar laws of general application affecting enforcement of creditors’ rights generally and (y) equitable principles of general applicability which may limit the availability of equitable remedies including specific performance (regardless of whether enforcement is sought in a proceeding in equity or at law). The Company is not, nor, to the Company’s knowledge, is any other party thereto (nor, to the Company’s knowledge, is the Company considered by any other party thereto to be), in material breach of or noncompliance with any term of any such agreement, instrument, or commitment (nor is there any basis for any of the foregoing). No material claim, change order, request for equitable adjustment, or request for contract price or schedule adjustment, between the Company and any supplier or customer, relating to any agreement, instrument, or commitment listed in the Disclosure Schedule is pending or, to the Company’s knowledge, threatened, nor is there any basis for any of the foregoing. Except as set forth in Section 2.16 of the Disclosure Schedule, no agreement, instrument, or commitment listed in the Disclosure Schedule, (i) includes or incorporates any provision, the effect of which may be to enlarge or accelerate any of the obligations of the Company or to give additional rights to any other party has threatened to thereto, or (ii) will terminate, lapse or in any Company Material Contractother way be affected, by reason of the transactions contemplated by this Agreement.
Appears in 1 contract
Sources: Preferred Stock Purchase Agreement (I2 Technologies Inc)
Material Contracts. (a) Section 3.9(a) Schedule 4.14 lists each of the written contracts and other agreements to which Seller or the Company Disclosure Letter sets forth is a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is party or relates by or to a Company Plan, (y) relates exclusively to the BBGS Business which Seller or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current assets or future rights, obligations properties is bound or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company Business as of the date hereof, including the following (such contracts and its Subsidiariesagreements being “Material Contracts”):
(1) any advertising, taken as a wholemarket research and other marketing agreements;
(v2) any Contract containing covenants binding upon the Companyemployment, severance, noncompetition, consulting or other agreements of any nature with any current or former stockholder, partner, officers or employee of its Subsidiaries, Seller or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any Affiliate of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lesssuch Persons;
(vi3) any Contract with respect agreements relating to a joint venture or partnership formed under the laws making of any applicable jurisdictionloan or advance by Seller or the Company;
(vii4) any Contract that would prevent agreements providing for the indemnification by Seller or materially delay the Company from performing its obligations under this Agreement of any Person, other than the express infringement indemnities included in any material respectstandard form sales or license agreements entered into by Seller or the Company in the ordinary course of business;
(viii5) any Contract, excluding agreements with any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property Governmental Authority except those entered into in the ordinary course of business consistent which are not material to Seller or the Company;
(6) any contracts and agreements for the sale of assets or for the furnishing of services, goods or products by or to Seller or the Company, including supply agreements, (A) with past practice with firm commitments having a value in excess of $250,000 and (B) having a term which is greater than six months and which is not terminable by Seller or the Company on less than 90 days’ notice without the payment of any termination fee or similar payment;
(7) any broker, distributor, dealer, representative or agency agreements;
(8) any agreements (including settlement agreements) currently in effect pursuant to which Seller licenses the right to use any Intellectual Property to any Person or from any Person, other than licenses to customers in the ordinary course of business, pursuant to Seller’s standard terms and conditions and research and development agreements;
(9) any voting trust or similar agreements relating to any of the Units or ownership interests of Seller to which Seller or the Company, or to the Knowledge of Seller or the Company, any of the stockholders of Seller, is a party;
(10) any joint venture, partnership or similar documents or agreements;
(11) any agreements that limit or purport to limit the ability of the Company to own, operate, sell, transfer, pledge or its Subsidiariesotherwise dispose of any assets; and
(xiii12) all other Contracts (other than this Agreementagreements, purchase orders contracts or commitments not made in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries which are material to Seller or between any of the Company’s wholly owned Subsidiaries.
(13) that contain obligations (including “earnout” all agreements containing earn outs or other similar contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any obligations of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material ContractSeller.”
(b) True and correct in all material respects copies of each Company Each Material Contract have been made available is legal, valid and binding on and enforceable against Seller, and, subject to Parent the receipt of any applicable third party consents required to be procured by Seller prior to Closing pursuant to Sections 6.5 or publicly filed 8.4, as of immediately prior to Closing will be binding on and enforceable against the Company, and to the Knowledge of Company, the other parties thereto, and is in full force and effect. Upon consummation of the Contribution, the Closing and the transactions contemplated by this Agreement, each Material Contract shall remain in full force and effect without any loss of benefits thereunder and without the need to obtain the consent of any party thereto to the transactions contemplated by this Agreement. Neither Seller nor the Company is (or with the SEC prior to the date hereof. Except as giving of notice or lapse of time would not reasonably be expected to havebe) in material breach of, individually or in the aggregatematerial default under, a Company any Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (Contract and, to the Knowledge of the Seller and Company, no other party is) thereto is in material breach of, or material default under under, any Company Material Contract, (ii) each of . Neither Seller nor the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any written notice that any Material Contract is not enforceable against any party thereto, that any Material Contract has been terminated before the expiration of termination with respect to, and, its term or that any party to a Material Contract intends to terminate such Material Contract prior to the Knowledge of the Companytermination date specified therein, no or that any other party has threatened to terminateis in breach of, or default under, any Company Material Contract. True and complete copies of all Material Contracts have been delivered to Purchaser.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a) 6.9 of the Company Parent Disclosure Letter sets forth Schedule provides a true and complete and correct list as of each of the date of this Agreement, excluding any Contract that (x) is or relates following Contracts to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company Parent or any of its Subsidiaries has any current is party or future rights, obligations or liabilities or to by which the Company Parent or any of its Subsidiaries or any of its or their respective assets or properties or assets is subject:are bound (collectively, the “Parent Material Contracts”):
(i) All leases for real property used by Parent or any of its Subsidiaries and all leases of personal property and any Contract (other than this Agreement) that is required affecting any right, title or interest in or to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedreal property;
(ii) indentureAll Contracts with Persons who are Service Providers;
(iii) Any Contract involving financing or borrowing of money, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence evidencing Debt; any liability for borrowed money; any letters of Indebtedness or agreement providing credit; any obligation for Indebtedness the deferred purchase price of property in excess of $100,000;
(iii) ; or guaranteeing in any way any Contract (other than this Agreement) for the sale of or Debt in connection with any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)Person;
(iv) settlement agreement Any joint venture, partnership, cooperative arrangement or similar any other Contract involving a sharing of profits;
(v) Any Contract with any Governmental Authority;
(vi) Any Contract with respect to the discharge, storage or removal of effluent, waste or pollutants;
(vii) Any Contract for the purchase or sale of any Parent Assets or assets of or any of its Subsidiaries other than in the Ordinary Course of Business or for the option or preferential rights to purchase or sell any Parent Assets or assets of or any of its Subsidiaries;
(viii) Any Contract containing covenants not to compete in any line of business or with any Person in any geographical area or that would otherwise result in Parent or any of its Subsidiaries being bound by, or subject to, any non-compete or other restriction on the operation or scope of its businesses, including the Parent Business;
(ix) Any Contract related to the acquisition of a Governmental business or the equity of any other Entity (A) involving future performance by or the Company sale of Parent or any of its Subsidiaries or any of their respective Affiliates (including the Parent and its Affiliates after the Effective Time) Assets or (B) that restricts in any respect the operations or conduct assets of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(vx) any Any other Contract containing covenants binding upon the Companywhich (i) provides for payment or performance by either party thereto having an aggregate value of $100,000 or more; (ii) is not terminable without payment or penalty on thirty (30) days (or less) notice; or (iii) is between, inter alia, Parent or any of its Subsidiaries, on the one hand, and an Affiliate thereof, including any Parent Stockholder, or any current or former director, officer, stockholder, equity holder, or employee of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such any immediate family member or Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or of any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay foregoing, on the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;other hand; and
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company Any proposed arrangement of rights ina type that, to or under Company Intellectual Property if entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreementinto, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such a Contract described in clauses (iany of Section 6.9(a)(i) – (xiiithrough 6.9(a)(x) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractabove.”
(b) True and correct in all material respects complete copies of each Company written Parent Material Contract and true and complete written summaries of each oral Parent Material Contract (including all amendments, supplements, modifications and waivers thereto) have been made available provided to Nutex by Parent.
(c) Each Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to haveMaterial Contract is currently valid, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and by Parent or its Subsidiaries, as applicable, in accordance with its terms.
(d) Neither Parent nor any of its Subsidiaries is in default, and to the Knowledge no party has notified Parent or any of its Subsidiaries in writing that Parent or any of its Subsidiaries is in default, under any Parent Material Contract. No event has occurred, and no circumstance or condition exists, that might, with or without notice or lapse of time:
(i) result in a violation or breach of any of the Company, material provisions of any Parent Material Contract;
(ii) give any Person the other parties thereto, subject right to the General Enforceability Exceptions, declare a default or exercise any remedy under any Parent Material Contract;
(iii) give any Person the Company and its Subsidiaries have performed all obligations required right to be performed by them accelerate the maturity or performance of any Parent Material Contract or to date under the Company cancel, terminate or modify any Parent Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and Contract; or
(iv) neither the Company otherwise have a Parent Material Adverse Effect in connection with any Parent Material Contract.
(e) Neither Parent nor any of its Subsidiaries has received waived any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, its rights under any Company Parent Material Contract.
(f) The performance of the Parent Material Contracts will not result in any violation of or failure by Parent or any of its Subsidiaries to comply in all material respects with any Law.
(g) The Parent Material Contracts constitute all of the material Contracts necessary to enable Parent and its Subsidiaries to conduct the Parent Business in the manner in which such Parent Business is currently being conducted in all material respects.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a) 3.16 of the Company Disclosure Letter sets forth Schedule contains a complete and correct list list, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract (other than this Agreement) described below in this Section 3.9(a3.16(a) under which the Company or any of its Subsidiaries Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:, in each case as of the date of this Agreement (all Contracts of the type described in this Section 3.16(a) are referred to herein as the “Company Material Contracts”):
(i) any Contract (other than this Agreement) that is required to be filed by limits in any respect the freedom of the Company as a material contract pursuant or any Company Subsidiary to Item 601(b)(10) compete in any line of Regulation S-K business, area or geographic region, or with any Person, including any Contract that requires the Company or any Company Subsidiary to work exclusively with any Person in any area or geographic region, that restricts hiring or soliciting for hire the employees or contractors of any Person or which by its terms would so limit the SEC but is not so filedfreedom of Parent and the Company Subsidiaries after the Effective Time;
(ii) indentureany partnership, credit agreementjoint venture, loan agreementstrategic alliance, security agreementcollaboration, guarantee, note, mortgage co-promotion or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000research and development project Contract;
(iii) any Contract that (A) grants any exclusive rights to any Person, including any exclusive license or supply or distribution agreement or other exclusive rights, (B) grants any rights of first refusal, rights of first negotiation or similar rights with respect to any product, service or Material Intellectual Property, (C) contains any provision that requires the purchase of all or any portion of the Company’s or any Company Subsidiaries’ requirements from any Person, or any other similar provision for more than this Agreement$75,000 in the twelve (12) for the sale of any of its assets after month period following the date hereof hereof, (other D) grants “most favored nation” or similar rights or (E) contains pricing commitments with respect to future purchases by any Person of the products or services of the Company or any Company Subsidiary for more than sales of inventory, product or obsolete equipment $75,000 in the ordinary course of business consistent with past practice)twelve (12) month period following the date hereof;
(iv) settlement agreement or similar any Contract with a Governmental Entity not otherwise described in any other subsection of this Section 3.16(a) that (A) involving is reasonably expected to involve future performance expenditures by the Company or any Company Subsidiary of its Subsidiaries or any of their respective Affiliates more than $75,000 in the twelve (including Parent 12) month period following the date hereof and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of cannot be terminated by the Company or any of its Subsidiaries such Company Subsidiary on less than ninety (90) days’ notice without material payment or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)penalty, in any such case, which is other than ordinary course product or raw material to the Company and its Subsidiaries, taken as a wholepurchase contracts;
(v) any acquisition or divestiture Contract containing covenants binding upon involving consideration in excess of $75,000 entered into in the Company, any of its Subsidiaries, or any of their respective Affiliates past three (including Parent and its Affiliates after the Effective Time3) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessyears;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdictionmaterial licensing Contract;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses indemnities or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnoutearn-out” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making of future payments in excess of $75,000 in the twelve (12) month period following the date hereof;
(viii) any Contract relating to outstanding Indebtedness of the Company or the Company Subsidiaries for borrowed money or any financial guaranty thereof (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $75,000 other than (A) Contracts solely among the Company and any Company Subsidiary and (B) any Contracts relating to Indebtedness explicitly included in the consolidated financial statements in the Company SEC Documents and which are publicly available prior to the date hereof in unredacted form as an exhibit to such Company SEC Documents;
(ix) any Contract pursuant to which the Company or any Company Subsidiary is a party that creates or grants a Lien (including Liens upon properties acquired under conditional sales, capital leases or other title retention or security devices), other than Company Permitted Liens;
(x) any Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly-owned Company Subsidiary) of its Subsidiaries the Company or any Company Subsidiary or any of payments their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand;
(xi) any Contract (other than readily available, “off-the-shelf” commercial licenses, or “shrink-wrap” or “click-through” agreements, terms of use or services, or similar agreements that are generally available on nondiscriminatory pricing terms to the extent the licenses contained therein are incidental to such Contracts, immaterial, nonexclusive and granted in the future ordinary course of business) under which the Company or any Company Subsidiary is granted any license, option or other right or immunity (including a covenant not to be sued or right to enforce or prosecute any patents) with respect to any Intellectual Property of a third party, which Contract is material to the Company or any Company Subsidiary;
(xii) any Contract under which the Company or any Company Subsidiary has granted to a third party any license, option or other right or immunity (including a covenant not to su▇ ▇r right to enforce or prosecute any patents) with respect to any Intellectual Property, which Contract is material to the Company or any Company Subsidiary;
(xiii) any stockholders, investors rights, registration rights or similar agreement or arrangement;
(xiv) any collective bargaining agreement or other Contract with any labor union;
(xv) any Contract relating to employment or compensation of any employee (A) with an aggregate annual salary and cash bonus in excess of $100,000 per annum 75,000 or $500,000 during the life of the Contract. Each such Contract described in clauses containing any change-in-control, severance payment obligations or similar payment, or (iB) – (xiii) (that is not excluded pursuant terminable at will; and
(xvi) any Contract involving the settlement of any claim, action or proceeding or threatened claim, action or proceeding (or series of related, claims actions or proceedings) which shall involve payments after the date hereof in excess of $75,000.
(b) The Company has made available to clause (x) or (y) Parent correct and complete copies of the lead-in language in Section 3.9(a))all Company Material Contracts, whether or not including any amendments thereto. Except as set forth on Section 3.9(a3.16(b) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectSchedule, (i) neither the Company nor any Company Subsidiary is in breach of its Subsidiaries is (or default under the terms of any Company Material Contract and, as of the date hereof, to the Knowledge of the Company, no other party is) in default under to any Company Material Contract, Contract is in breach of or default under the terms of any Company Material Contract and (ii) each of the Company Material Contracts Contract, in all material respects, is in full force and effect, effect and is the valida legal, valid and binding and enforceable obligation agreement of the Company and its Subsidiariesor a Company Subsidiary, and to as the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect tocase may be, and, to the Knowledge of the Company, no of each other party has threatened thereto, Enforceable against the Company or Company Subsidiary, as the case may be, and to terminatethe Knowledge of the Company, any Company Material Contractagainst the other party or parties thereto.
Appears in 1 contract
Sources: Merger Agreement (Ceres, Inc.)
Material Contracts. (a) Section 3.9(a4.19(a) of the Company Disclosure Letter Schedule sets forth a an accurate and complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which of the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following nature to which the Company or any of its Subsidiaries Company Subsidiary is a party or by which the Company or any of their respective properties or assets Company Subsidiary is subjectbound:
(i) Contract any “material contract” (other than this Agreement) that as such term is required to be filed by the Company as a material contract pursuant to defined in Item 601(b)(10) of Regulation S-K of promulgated by the SEC but is not so filedSEC);
(ii) indentureany Contract with a Major Supplier, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence excluding any purchase orders issued in the ordinary course of Indebtedness or agreement providing for Indebtedness in excess of $100,000business;
(iii) any Contract (other than this Agreement) for the sale of with a Major Customer, excluding any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment purchase orders issued in the ordinary course of business consistent with past practice)pursuant to a Contract listed in Section 4.19(a)(iii) of the Company Disclosure Schedule between the Company or any Company Subsidiary and such Major Customer; provided, however, that any purchase orders defining the term “Restricted Technology” shall be listed;
(iv) settlement agreement or similar any Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeMajor Distributor;
(v) any Contract containing covenants binding upon relating to the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessLeased Real Property;
(vi) any Contract with respect to a joint venture lease or partnership formed under the laws sublease of any applicable jurisdictionpersonal property providing for annual payments of $500,000 or more;
(vii) any Contract that would prevent relating to the acquisition or materially delay the Company from performing its obligations under this Agreement in disposition of any material respectbusiness (whether by merger, sale of stock, sale of assets or otherwise);
(viii) any partnership, joint venture, revenue-sharing or other similar Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights limits or “most favored nations” provisions or minimum use or supply requirements that are material purports to limit the Company and its Subsidiaries taken as a whole, or that is material to freedom of the Company or its Subsidiaries and purports any Company Subsidiary to bind sell any products or services, solicit any customer or employee or to compete in any line of business or with any Person or in any area or during any period of time or which would so limit the freedom of the Company, Parent or any of their respective Affiliates (including Parent or its Affiliates Subsidiaries after the Effective Time)Closing Date;
(x) any Government ContractContract 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 $2,000,000 pursuant to which the Company or a Company Subsidiary has ongoing obligations;
(xi) any Related Party ContractContract that grants any Person “most favored nation” status or any type of special discount rates or obligates the Company or any Company Subsidiary (or following the Effective Time, Parent or its Subsidiaries) to conduct business with any Person on a preferential or exclusive basis;
(xii) any Contract with any director or officer of the Company IP Agreements or any Company Subsidiary or with any “associate” or any member of the “immediate family” (as such terms are respectively defined in Rules 12b-2 and 16a-1 of the Exchange Act) of any such director or officer, except for Employee Plans;
(xiii) any Contract pursuant to which the Company or any Company Subsidiary obtains any license, sublicense, right to use, covenant not to be sued, immunity from suit, option, right of first refusal, right of first offer or other similar right with respect to any Intellectual Property Right or otherwise requires the Company or any Company Subsidiary to make payments that are based on the amount of income or revenue of the Company or the Company Subsidiaries, other than any commercial off-the-shelf software licensed by the Company or any Company Subsidiary not customized for the Company’s or any Company Subsidiary’s use with a replacement cost and/or aggregate annual license and maintenance fee of less than $100,000;
(Axiv) Shrink-Wrap Licenses any Contract pursuant to which the Company or (B) Contracts including any Company Subsidiary grants any license, sublicense, right to use, covenant not to be sued, immunity from suit, option, right of first refusal, right of first offer or other similar right with respect to any Intellectual Property Right, other than any non-exclusive licenses or other non-exclusive grants by the Company of rights in, granted to or under Company Intellectual Property customers entered into in the ordinary course of business consistent in connection with past practice with customers the sale of the Company’s products or services;
(xv) any Contract wherein the Company or its Subsidiaries; andany Company Subsidiary assigns or is obligated to assign, any title, in whole or in part, solely or jointly, beneficially or actually, with respect to any Intellectual Property Right, or any Person has an option or other right concerning any of the foregoing;
(xiiixvi) other Contracts (any Contract providing for the development of any Intellectual Property Right for the Company or a Company Subsidiary or that contains an assignment, an obligation to assign, or an option or right of first refusal for any of the foregoing with respect to any Intellectual Property Right, other than Contracts between the Company or a Company Subsidiary and its respective employee entered in the standard form of agreement disclosed to Parent;
(xvii) any Contract that, upon the execution of this Agreement or the consummation of the Merger may, either alone or in combination with any other event, result in any payment (whether of severance pay or otherwise) becoming due from the Company or any Company Subsidiary to any officer or employee thereof;
(xviii) any Collective Bargaining Agreement;
(xix) any Contract that obligates the Company or any Company Subsidiary to make any loans, advances or capital contributions to, or investments in, any Person;
(xx) any Contract entered into since March 30, 2013 in connection with the settlement or resolution of any Legal Proceeding or material claim;
(xxi) any Contract that involved the payment of more than $3,000,000 by the Company together with the Company Subsidiaries in 2015 or that is expected to result in the payment of such amount by the Company and the Company Subsidiaries in 2016, excluding (A) purchase orders issued in the ordinary course of business consistent with past practice, agreements between involving the payment of less than $1,000,000 by the Company and any Company Subsidiary in 2015 or that is expected to result in the payment of its wholly owned Subsidiaries such amount by the Company and any Company Subsidiary in 2016 and (B) Contracts with customers, suppliers and distributors;
(xxii) any Contract that involved the receipt of more than $3,000,000 by the Company and any Company Subsidiary in 2015 or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be is expected to result in the receipt of such amount by the Company and any Company Subsidiary in 2016, excluding (A) purchase orders issued in the ordinary course of business involving the payment of less than $1,000,000 by the Company and any Company Subsidiary in 2015 or making that is expected to result in the payment of such amount by the Company and any Company Subsidiary in 2016 and (B) Contracts with customers, suppliers and distributors;
(xxiii) any Contract providing for the outsourcing, contract manufacturing, testing, assembly, supply or fabrication of any material products, technology or services of the Company or any Company Subsidiary;
(xxiv) any Contract relating to the supply of any item used by the Company or any Company Subsidiary that is a sole source of its Subsidiaries supply of payments in the future any raw material, component or service;
(xxv) any Contract for any capital expenditure in excess of $100,000 per annum 2,000,000 individually or $500,000 during in the life aggregate payable to which the Company or any Company Subsidiary has continuing monetary obligations;
(xxvi) any Contract for which the execution, delivery or performance by the Company of this Agreement and the consummation of the transactions contemplated hereby would require the consent or other action by any Person under, constitute a default, or an event that, with or without notice or lapse of time or both, would constitute a default under, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation or the loss of any benefit to which the Company or any Company Subsidiary is entitled;
(xxvii) any Government Contract; and
(xxviii) any Contract relating to the creation of any Lien (other than Permitted Liens) with respect to any material asset of the Company or any Company Subsidiary. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant The Company has made available to Parent, or with respect to clause (x) or (ya)(i) of the lead-in language in this Section 3.9(a))4.19, whether filed or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed furnished with the SEC prior to the date hereof. of this Agreement, a correct and complete copy of each contract, agreement, arrangement or understanding of the type described in clauses (i)-(xxviii) of this Section 4.19 (each, a “Material Contract”), including all amendments or modifications thereto.
(b) Except as would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse EffectEffect on the Company and the Company Subsidiaries, taken as a whole, (i) neither each Material Contract is a valid and binding obligation of the Company nor any of its Subsidiaries is (or the applicable Company Subsidiary and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge knowledge of the Company, of the other party or parties theretothereto enforceable against the Company or the applicable Company Subsidiary and, to the knowledge of the Company, against the other party or parties thereto in accordance with its terms (subject to the General Enforceability Exceptionsapplicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally and general principles of equity); (iiiii) the Company or the applicable Company Subsidiary has performed in all respects all obligations required to be performed by it under, and its Subsidiaries have is not in default under or in breach of, each Material Contract and, to the knowledge of the Company, each other party to each Material Contract has performed all obligations required to be performed by them to date it under, and is not in default under or in breach of, such Material Contract; and (iii) since March 30, 2014, the Company Material Contracts and are has not received written notice of any violation or default under (nor, to the knowledge of the Company, does there exist any condition which with or without the notice or lapse of time or both would cause such a violation of, a material default under or any acceleration or increase of obligations or rights thereunder) any Material Contract. There are no disputes pending or, to the giving knowledge of noticethe Company, or both) in breach thereunder and (iv) threatened with respect to any Material Contract as of the date of this Agreement. As of the date of this Agreement, neither the Company nor any of its Subsidiaries Company Subsidiary has received any notice of termination with respect towritten notice, and, or to the Knowledge knowledge of the Company, no oral notice from any other party has threatened to terminateany Material Contract of its intention to terminate for default, convenience or otherwise such Material Contract prior to its stated expiration date or that it intends to not renew or to materially and adversely change the terms of (whether related to payment, price or otherwise) its relationship with the Company or any Company Material ContractSubsidiary.
Appears in 1 contract
Sources: Merger Agreement (InvenSense Inc)
Material Contracts. (a) Section 3.9(aSchedule 4.10(a) lists the following Contracts to or under which the Company is a party, obligor or beneficiary or under which any of the Assets is subject, bound or affected (collectively, the “Material Contracts”):
(i) each Contract which requires payment by the Company, or a series of payments, that in the aggregate exceeded $250,000 in fiscal year 2020;
(ii) each Contract which provides for the performance of services that generated receipt of payments by the Company in excess of $500,000 in fiscal year 2020;
(iii) all Contracts relating to an acquisition or sale of real property or material Assets of the Company;
(iv) each Contract relating to Company Indebtedness, each Contract pursuant to which the Company has made or will make loans or advances, or has incurred, or is obligated to incur, indebtedness for borrowed money or has become a guarantor or surety or pledged its credit for or otherwise become responsible with respect to any undertaking of another Person or any Contract granting a Lien upon any Assets or the making of any loans;
(v) each management agreement or Contract for the employment of, or receipt of any services from, any manager or director or officer of the Company, any Business Employee or any other Person on a full-time, part-time, consulting or other basis (A) providing annual compensation in excess of $200,000 (based on actual compensation paid in calendar year 2020) or (B) providing for the payment of any cash or other compensation or benefits upon the consummation of the transactions contemplated hereby;
(vi) all Contracts required to be set forth on Schedule 4.20;
(vii) all Contracts that provide for severance, termination or similar pay to any current or former managers, officers, employees or consultants or other independent contractors of the Company Disclosure Letter sets forth or its business;
(viii) any Contract which (A) limits or restricts the ability of the Company to enter into or engage in any market or line of business, or to compete (geographically or otherwise) with any Person, (B) establishes an exclusive sale or purchase obligation of the Company with respect to any product or service, or (C) establishes any restrictions on the Company to make, sell, distribute or purchase obligations with respect to any product or service, granting any “most favored nations” or similar rights or otherwise prohibiting or limiting the right of the to make, sell or distribute any products or services;
(ix) all powers of attorney granted by or on behalf of the Company;
(x) each Contract for services or Contract for the purchase, rental or use of personal property, including equipment, vehicles, and other personal property or fixtures, in each case pursuant to which the Company has ongoing or future payment obligations or has otherwise become responsible for an aggregate amount of greater than $250,000 annually;
(xi) all Contracts requiring performance by any party one (1) year or more from the date hereof and which cannot be cancelled or terminated by the Company without penalty or other adverse effect upon ninety (90) days’ (or less) written notice;
(xii) all Contracts that relate to the acquisition of any business, a complete material amount of stock, equity or assets of any other Person or any real property (whether by merger, sale of stock, equity or assets or otherwise);
(xiii) all Contracts under which the Company receives any license or grant of rights under (including any covenant not to ▇▇▇), or assignment of, any Intellectual Property from a Person, which Contract is material to the Company;
(xiv) the Real Property Leases, and correct list as all leases, subleases or similar Contract with any Person under which (1) a Seller is a lessor or lessee of any Assets or (2) the Company is a lessor or lessee of any material tangible Assets;
(xv) all Contracts (or series of related Contracts) involving the settlement of any Legal Proceeding or pending or threatened Legal Proceeding entered into within three years prior to the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses releases immaterial in nature or amount entered into with former employees or independent contractors of the Company in the Ordinary Course of Business in connection with routine cessation of such employee’s or independent contractor’s employment with or retention by the Company and (B) settlement agreements for cash only (which has been paid) and does not exceed $50,000 as to such settlement;
(xvi) all Indemnification Agreements;
(xvii) all Contracts including non-exclusive licenses for any joint venture, partnership or other non-exclusive grants similar arrangement or involving a sharing of revenues, profits, losses, costs or Liabilities by the Company with any other Person;
(xviii) all Contracts under which the Company granted any Person any license or grant of rights inunder (including any covenant not to ▇▇▇), or made any assignment of, any Company owned Intellectual Property, which Contract is material to or the Company;
(xix) all Contracts with any Governmental Body (“Government Contracts”);
(xx) all Contracts with any Top Customer;
(xxi) all Contracts with any Top Vendor;
(xxii) all Contracts under which the Company Intellectual Property entered into has made advances (other than routine advances to its employees in the ordinary course Ordinary Course of business consistent with past practice with customers of the Company Business) or its Subsidiariesloans to any other Person; and
(xiiixxiii) other Contracts (other than this Agreementall collective bargaining agreements or agreements with any labor organization, purchase orders in the ordinary course of business consistent with past practice, agreements between union or association to which the Company and any of its wholly owned Subsidiaries is a party or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that business is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractsubject.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably set forth on Schedule 4.10(b), all Material Contracts are valid, binding and in full force and effect in accordance with their respective terms and are enforceable following the Closing, except as the same may be expected to havelimited by bankruptcy, individually insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and general equitable principles regardless of whether such enforceability is considered in a proceeding at law or in the aggregate, a Company Material Adverse Effectequity.
(c) Except as set forth on Schedule 4.10(c), (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no nor to Sellers’ Knowledge, any other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts thereto is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in any material respect in breach thereunder of or default under any Material Contract and (ivii) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party to any Material Contract has provided written notice or threatened in writing to terminate, any Company cancel or not renew such Material Contract or renegotiate the terms of such Material Contract. The Company has made available to Purchaser accurate and complete copies of each written Material Contract and a materially accurate and complete written summary of each oral Material Contract, in each case including all amendments thereto.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a3.16(a) of the Disclosure Schedule lists the following Contracts to which the Company Disclosure Letter sets or any of its Subsidiaries is a party or by which it or its assets are bound (each such Contract, whether or not set forth a complete and correct list as in such section of the date Disclosure Schedule, a “Material Contract”); provided that for the Contracts described in subsections (vii), (viii), (xi), (xiii), (xiv), (xv), (xvi), (xvii) and (xviii) below only Contracts which involve aggregate amounts paid or payable by or to the Company and its Subsidiaries exceeding $250,000 need be listed:
i. employment or consulting Contract, severance Contract, change of this Agreementcontrol Contract or any employee collective bargaining agreement or other Contract with any labor union or any officer, excluding director, employee or consultant of the Company;
ii. Contract relating to any employee benefit plan;
iii. Contract not to compete or otherwise restricting the development, manufacture, marketing, distribution or sale of any products or services (including any Contract that requires the Company or any of its Subsidiaries to work exclusively with any Person in any particular area or any other limitation on the ability of the Company or any of its Subsidiaries to (xA) is transact or relates compete in any line of business, in any therapeutic area, with any Person, in any geographic area or during any period of time or (B) acquire or sell any product or asset, or receive or provide any services, from or to a any Person;
iv. Contract containing any “non-solicitation” or “no-hire” provision that restricts the Company Planor any of its Subsidiaries;
v. Contract containing any provision that applies to or restricts the operations or business of any Affiliate of the Company (other than any Subsidiary of the Company);
vi. Contract with or involving (A) any Affiliate of the Company, (yB) relates exclusively any current or former holder of capital stock of the Company or any Affiliate thereof or (C) any director, officer or employee of the Company or any Affiliate thereof;
vii. lease, sublease or similar Contract with any Person under which the Company or any of its Subsidiaries is a lessor or sublessor of, or makes available for use to any third party any portion of any premises otherwise occupied or leased by the Company or any of its Subsidiaries;
viii. lease or similar Contract with any Person under which (A) the Company is lessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by any Person or (B) the Company is a lessor or sublessor of, or makes available for use by any Person, any tangible personal property owned or leased by the Company;
ix. Contract (or substantially related Contracts) (A) calling for performance over a period of more than one year, (B) requiring or otherwise involving the potential payment by or to the BBGS Business Company or any of its Subsidiaries of more than an aggregate of $250,000, (C) in which the Company or any of its Subsidiaries has granted manufacturing rights, “most favored nation” pricing provisions or marketing or distribution rights relating to any products or territory or (zD) is filed as an exhibit in which the Company or any of its Subsidiaries has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from a certain party;
x. management service, consulting, financial advisory or any other similar Contract, and any Contract with any investment or commercial bank;
xi. Contract for the disposition of any significant portion of the assets or business of the Company or any of its Subsidiaries or any agreement for the acquisition, directly or indirectly, of the assets or business of any other Person;
xii. Contract for any joint venture, partnership or similar arrangement;
xiii. Contract (other than material transfer agreements) granting a third party, including but not limited to affiliates of the Company, any license to any Intellectual Property, or pursuant to which the Company SEC Documentor any of its Subsidiaries has been granted by a third party any license to any Intellectual Property, or any other license, option or other Contract relating in whole or in part to the Intellectual Property or the Intellectual Property of each any other Person;
xiv. Contract described (other than trade debt incurred in this Section 3.9(athe ordinary course of business) under which the Company or any of its Subsidiaries has borrowed any current money from, or future rights, obligations or liabilities or to which the Company or issued any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage bond, debenture or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000indebtedness to, any Person;
(iii) xv. Contract (other than this Agreementincluding so-called take-or-pay or keepwell agreements) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity under which (A) involving future performance by the Company any Person has directly or any of its Subsidiaries indirectly guaranteed indebtedness, liabilities or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct obligations of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to B) the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, or any of its SubsidiariesSubsidiaries has directly or indirectly guaranteed indebtedness, liabilities or obligations of any Person (in each case other than endorsements for the purpose of collection in the ordinary course of business);
xvi. Contract under which the Company or any of their respective Affiliates its Subsidiaries has, directly or indirectly, made any advance, loan, extension of credit or capital contribution to, or other investment in, any Person;
xvii. Contract (including Parent other than material transfer agreements, sponsored research agreements and its Affiliates after clinical trial agreements entered in the Effective Timeordinary course of business) involving a research or development collaboration or similar arrangement;
xviii. Contract involving a supply or tolling agreement or arrangement (including, without limitation, any agreements for the supply of raw materials, intermediates, bulk or finished drug product, research, clinical trial, development, distribution, or sale) that materially restricts commits the ability Company or any of its Subsidiaries to purchase goods or services or to sell any supplies for clinical studies or commercial use;
xix. Contract involving a standstill or similar obligation of the Company or any of its Subsidiaries to a third party or such Affiliate of a third party to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessSubsidiaries;
(vi) any xx. Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdictionGovernmental Authority;
(vii) any xxi. Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiariesbusiness; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) xxii. Contract that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected is otherwise material to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material ContractSubsidiaries.”
(b) True and correct in all material respects copies of each The Company Material Contract have been has made available to Parent the Investors true and complete copies of all Material Contracts. Each Material Contract is in full force and effect and is a valid and binding obligation of the Company or publicly filed its applicable Subsidiary party thereto and each of the other parties thereto, enforceable in accordance with the SEC prior to the date hereofits terms. Except as would not reasonably be expected set forth in Section 3.16(b) of the Disclosure Schedule, no event, occurrence, condition or act has occurred, is pending or, to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither Knowledge of the Company nor is threatened, which, with the giving of notice, lapse of time, or the happening of any further event, occurrence, condition or act, would constitute a breach or default by the Company, any of its Subsidiaries is (andor, to the Knowledge of the Company, no any other party isto (i) in default under any Company Material Contract listed on Section 3.16(a) of the Disclosure Schedule or (ii) any other Material Contract, under such Material Contract, or give rise to a right of termination, cancellation or to loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any Person under any Material Contract, except where such breach or default or giving rise to such a right with respect to any Material Contract referred to in clause (ii) each of above would not, individually or in the Company aggregate, reasonably be expected to have a Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither Adverse Effect. Neither the Company nor any of its Subsidiaries has received any notice obligation to repay any public subsidies or public grants.
(c) Except as described in Section 3.16(c) of termination the Disclosure Schedule, the execution and delivery of this Agreement and the consummation of the Restructuring Transactions and the other transactions contemplated hereby will not (i) result in any material payment (including severance, unemployment compensation, tax gross-up, bonus or otherwise) becoming due to any current or former director, officer, employee or independent contractor of the Company or any of its Subsidiaries, from the Company or one of its Subsidiaries under any employee benefit plan, Contract or otherwise, (ii) materially increase any benefits otherwise payable under any employee benefit plan, Contract or otherwise or (iii) result in the acceleration of the time of payment, exercise or vesting of any such material benefits.
(d) Except as set forth on Section 3.16(d) of the Disclosure Schedule, each of the employees, officers and directors of the Company and its Subsidiaries is party to a confidentiality agreement with respect tothe Company providing, andamong other things, reasonable and customary protections to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract’s Intellectual Property.
Appears in 1 contract
Sources: Restructuring and Exchange Agreement (Xtant Medical Holdings, Inc.)
Material Contracts. (a) Section 3.9(a5.14(a) of the Company Disclosure Letter sets forth contains a complete and correct list list, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described below in this Section 3.9(a5.14(a) under which the Company or any of its Subsidiaries has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any of its Subsidiaries is a party or to which any of their respective properties or assets is subject, other than the Debtor Plans listed on Section 5.16(a) of the Company Disclosure Letter (all Contracts of the type described in this Section 5.14(a), whether or not set forth on Section 5.14(a) of the Company Disclosure Letter, being referred to herein as the “Material Contracts”):
(i) requires expenditures by the Company or any of its Subsidiaries involving consideration in excess of one hundred thousand dollars ($100,000) in the next twelve (12)-month period;
(ii) provides for payments to be received by the Company or any of its Subsidiaries in excess of one hundred thousand dollars ($100,000) in any twelve (12)-month period;
(iii) relates to the incurrence by the Company or any of its Subsidiaries of any Indebtedness or any capitalized lease obligations in excess of fifty thousand dollars ($50,000);
(iv) relates to the acquisition or disposition outside the ordinary course of business of any assets or any business, or any capital stock of any enterprise (whether by merger, sale or purchase of stock, sale or purchase of assets or otherwise) entered into in the past three (3) years, in each case, in excess of one hundred thousand dollars ($100,000);
(v) relates to the future acquisition or disposition of any material assets or properties (whether by merger, sale or purchase of stock, sale or purchase of assets or otherwise, including any option to acquire, sell, lease or license any material assets or properties of the Business), other than (A) in the ordinary course of business consistent with past practice, (B) as contemplated by this Agreement, the Restructuring Term Sheet or any Definitive Document or (C) to the extent permitted under applicable Law, any non-disclosure or similar agreement entered into in connection with the process by which the Company or any of its Subsidiaries, any of their respective Affiliates or any Representatives of any of the foregoing solicited, discussed or negotiated strategic alternatives prior to the date of this Agreement (including the Transactions or any other transaction prior to the date of this Agreement);
(vi) is a joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research, development or other similar agreement involving the sharing of profits or expenses (other than clinical trial agreements, contract manufacturing agreements or other similar subcontracting arrangements entered into in the ordinary course of business);
(vii) is a Lease;
(viii) (A) may require the Supporting Lenders to pay milestones, royalties or other contingent payments based on any research, testing, development, regulatory filings or approval, sale, distribution, marketing, commercial manufacture or other similar occurrences, developments, activities or events with respect to any Product, in each case, which payments are in an amount having an expected value in excess of fifty thousand dollars ($50,000) during the fiscal year ending December 31, 2019 or any fiscal year thereafter or (B) grants to any Person a right of first refusal, right of first negotiation, option to purchase, option to license, or any other similar rights with respect to any Product;
(ix) requires the Company or any of its Subsidiaries to purchase from a third Person their total requirements of any products or services;
(x) with any Governmental Entity;
(xi) (A) limits or purports to limit, in any material respect, the freedom of the Business to engage or compete in any line of business or with any Person or in any geographic area, (B) contains exclusivity or “most favored nation” obligations in favor of any Person other than the Company or its Subsidiaries or restrictions to which the Business is subject or (C) contains any other provisions restricting or purporting to restrict the ability of the Company or its Subsidiaries to sell, market, distribute, promote, manufacture, develop, commercialize, or test or research the Products, directly or indirectly through third parties (other than any such restrictions or purported restrictions that have a de minimis effect on the Business);
(xii) is a material Contract pursuant to which the Company or any of its Subsidiaries grants or receives any license, covenant not to ▇▇▇ or similar right with respect to, or governs or restricts the development, ownership, use, practice or enforcement of, any Intellectual Property (other than (A) non-exclusive licenses to use Software on standardized terms that are generally commercially available and (B) clinical trial agreements, contract manufacturing agreements, material transfer agreements, and other Contracts entered into in the ordinary course of business, in each case, in which grants of rights with respect to Intellectual Property are nonexclusive and incidental to performance under such Contract);
(xiii) relates to sales and distribution activities conducted by a third-party wholesaler or distributor that are material to the Business;
(xiv) relates to the ongoing supply or manufacturing of clinical and commercial quantities of any of the Products, the termination of which would reasonably be expected to be material to the Business (taken as a whole);
(xv) other than the Contracts described in Section 5.14(a)(iii), under which the Company or any of its Subsidiaries or any of their respective properties Affiliates have borrowed or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) loaned money, or any note, bond, indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence any guarantee of Indebtedness or agreement providing for Indebtedness such indebtedness, in each case, relating to amounts in excess of one hundred thousand dollars ($100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(ivxvi) relates to any settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by stipulation of any Cause of Action against the Company or any of its Subsidiaries by any other Person, other than settlement agreements for cash that do not exceed twenty-five thousand dollars ($25,000) individually as to any such settlement or stipulation (excluding amounts paid by insurers) or one hundred thousand dollars ($100,000) individually as to any such settlement or stipulation (including any amounts paid by insurers), entered into since January 5, 2018; and
(xvii) provides for indemnification of any officer, director or employee of the Company or its Subsidiaries or any of their respective Affiliates other than in the ordinary course of business.
(including Parent b) True and complete copies of each Material Contract, together with all amendments, modifications or supplements thereto, as of the date of this Agreement have been made available to the Supporting Lenders. None of the Company or any of its Affiliates after Subsidiaries has received any written notice of termination (or intent to terminate) with respect to a Material Contract from any third Person party to such Material Contract. No event has occurred which, with the Effective Time) passage of time or (B) that restricts in the giving of notice, or both, would constitute a default under or a violation of any respect Material Contract or would cause the operations or conduct acceleration of any obligation of the Company or any of its Subsidiaries or their applicable Affiliates or the creation of an Encumbrance (other than Permitted Encumbrances) upon any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, assets or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability properties of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic areaSubsidiaries, except for any such Contract events that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does have not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company had and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to . To the Knowledge of the CompanyDebtors, as of the date of this Agreement, no other party is) to any Material Contract is in breach of or default under the terms of any Company Material ContractContract where such breach or default has had or would reasonably be expected to have, (ii) each of individually or in the Company aggregate, a Material Contracts Adverse Effect. Each Material Contract is in full force and effect, and is the a valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) applicable the Company and or its applicable Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, their applicable Affiliates party thereto and, to the Knowledge of the CompanyDebtors, no of each other party has threatened thereto, and is in full force and effect, subject to terminate, any Company Material Contractthe Enforceability Limitations.
Appears in 1 contract
Sources: Restructuring Support Agreement (Melinta Therapeutics, Inc. /New/)
Material Contracts. (ai) Except (i) for any Benefit Plan, (ii) as filed as exhibits to a Company Report, (iii) for this Agreement and the other agreements entered into between the Company and Parent in connection with the transactions contemplated hereby and (iv) as set forth in Section 3.9(a5.1(j)(i) of the Company Disclosure Letter sets forth Schedule, which contains a true, correct and complete and correct list as of the date hereof of all Material Contracts to or by which the Company or any of its Subsidiaries is a party or is bound, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which neither the Company or nor any of its Subsidiaries has is party to or bound by any current or future rightsContract (a Contract described by clauses (A) through (T) of this Section 5.1(j)(i), obligations or liabilities or including Contracts and all amendments and modifications thereto filed as exhibits to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:Reports, being hereinafter referred to as a “Material Contract”):
(i) Contract (other than this AgreementA) that is required to be filed by the Company a “material contract” (as a material contract pursuant to such term is defined in Item 601(b)(10) of Regulation S-K of the SEC but is not so filedExchange Act);
(iiB) that contains any non-compete or exclusivity provision that restricts the ability of the Company or any of its Subsidiaries to compete with respect to any geographic area (or would so restrict, on its face, following the consummation of the Merger, the Surviving Corporation or any of its Affiliates);
(C) that provides for the Company or any of its Affiliates to obtain a service, product, product line, operations or line of business from any Person (including any of the Top Suppliers) that involved annual payments or consideration in the fiscal year ended January 1, 2022 (“Fiscal Year 2021”) (or which is expected to involve annual payments or consideration in the fiscal years ending December 31, 2022 (“Fiscal Year 2022”) or December 30, 2023 (“Fiscal Year 2023”)) in excess of $10,000,000, or that contains any minimum purchase commitments in excess of $10,000,000 annually;
(D) with a third-party manufacturer or supplier for the manufacture and/or supply of materials or products in the supply chain for the Company Products that involves annual payments or consideration in Fiscal Year 2021 (or which is expected to involve annual payments or consideration in Fiscal Year 2022 or Fiscal Year 2023) in excess of $10,000,000;
(E) with a third-party retailer or distributor for the sale of the Company Products (including any of the Top Distributors) that involves annual payments or consideration in Fiscal Year 2021 (or which is expected to involve annual payments or consideration in Fiscal Year 2022 or Fiscal Year 2023) in excess of $15,000,000;
(F) that contains covenants expressly limiting in any material respect the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of any material assets (including any restrictions on the transfer of any Intellectual Property Rights) or businesses of the Company or any of its Subsidiaries;
(G) that contains any standstill, “most favored nation” or most favored customer provision or rights of first or last offer, negotiation or refusal, in each case, to which the Company or any of its Affiliates is subject (or that would so subject the Surviving Corporation or any of its Affiliates following the consummation of the Merger);
(H) that provides for or relates to a partnership, joint venture, collaboration or similar material arrangement (in each case, other than with respect to wholly owned Subsidiaries of the Company);
(I) that is an indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness or guaranteeing indebtedness of any Person in excess of $100,000;
(iii) Contract 3,000,000 (other than this Agreement) for the sale surety or performance bonds, letters of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement credit or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property agreements entered into in the ordinary course of business consistent with past practice with customers of in each case to the Company extent not drawn upon), except for any Contract solely among or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries Subsidiaries;
(J) that includes an uncapped indemnification obligation (other than indemnification obligations for ordinary course products liabilities or between any confidentiality obligations), a guarantee of the Company’s wholly owned Subsidiaries) that contain obligations (including performance or payment of a third party, or any “earnout” or other contingent payment obligationsor deferred obligation payable, in each case by the Company or any of its Subsidiaries;
(K) that would reasonably be expected is a Material Real Property Lease;
(L) (1) pursuant to result which a third party has granted to the Company or any of its Subsidiaries a license, covenant not to ▇▇▇ or other right to any Intellectual Property Rights (other than any (a) non-exclusive retail shrink-wrap or click-wrap license for off-the-shelf software that is generally available on a commercial basis, (b) Open Source Licenses, (c) agreements where any non-exclusive license of any Intellectual Property Rights is incidental to such agreement, such as non-exclusive licenses to use feedback and suggestions and non-exclusive licenses authorizing the use of brand materials for marketing purposes, (d) employee or contractor agreements entered into in the receipt ordinary course of business pursuant to the Company’s or making its Subsidiaries’ standard form of such agreement, and (e) nondisclosure agreements entered into in the ordinary course of business), including any Intellectual Property Rights included or embodied in any Company Product or any Contract providing for the payment of royalties to any third party, (2) pursuant to which the Company or any of its Subsidiaries has granted a third party a license, covenant not to ▇▇▇, or other right to any Owned Intellectual Property (other than any (a) non-exclusive licenses granted pursuant to end-user customer agreements and contractors agreements entered into in the ordinary course of business, (b) agreements where any non-exclusive license of any Intellectual Property Rights is incidental to such agreement, such as non-exclusive licenses to use feedback and suggestions and non-exclusive licenses authorizing the use of brand materials for marketing purposes, and (c) nondisclosure agreements entered into in the ordinary course of business), (3) pursuant to which any Intellectual Property Right is or has been developed by or for the Company or any of its Subsidiaries, assigned to the Company or any of its Subsidiaries by any other Person, or assigned by the Company or and of its Subsidiaries to any other Person (other than any agreements signed by employees and contractors assigning to the Company or any of its Subsidiaries any Intellectual Property Rights made by such employee, in each case entered into in the ordinary course of business) or (4) which grants or conveys (or purports to grant or convey) any right with respect to Intellectual Property Rights of Parent or any of its Affiliates (other than Company or any of its Subsidiaries), in each of cases (1)–(4), including any Contract under which the rights granted are exclusive or sublicensable ((1), (2), (3) and (4) collectively, “Company IP Agreements”);
(M) with a Governmental Authority (other than Company Permits);
(N) that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any Person or assets that have a fair market value or purchase price of more than $1,000,000 (other than the Stock Plans or agreements entered pursuant thereto);
(O) that is a pricing protection plan or that would (or would purport to) restrict or impose conditions on third-party pricing;
(P) that relates to the disposition or acquisition, directly or indirectly (by merger or otherwise), by the Company or any of its Subsidiaries of payments in the future assets or businesses with a fair market value in excess of $100,000 500,000;
(Q) that relates to sale promotion, market research, marketing, or advertising Contracts and involves expenditures in excess of $3,000,000 per annum annum;
(R) that relates to interest rate, currency, or $500,000 during commodity derivatives or hedging transactions;
(S) that relate to Contracts, transactions, indebtedness or other arrangements between the life Company or any Subsidiary, on the one hand, and any of the Contract. Each such Contract described in clauses directors or officers of the Company and Subsidiaries, on the other hand (iother than compensation payable to officers and directors and employee expense reimbursement obligations and except to the extent not required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the Securities Act); or
(T) – (xiii) (that is not excluded pursuant covered by clauses (A) through (S) and involved in Fiscal Year 2021 or is expected to clause involve in Fiscal Year 2022 or Fiscal Year 2023 the payment by or to the Company or any of its Subsidiaries of more than $15,000,000 in the aggregate.
(xii) or (y) The Company has made available to Parent prior to the date of the lead-in language this Agreement, accurate and complete copies of all Material Contracts required to be identified in Section 3.9(a)), whether or not set forth on Section 3.9(a5.1(j)(i) of the Company Disclosure LetterSchedule, is referred to herein including all amendments thereto, as a “Company Material Contractin effect as of the date of this Agreement.”
(biii) True Except for expirations of Material Contracts in the ordinary course of business and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except except as has not had, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid and binding agreement of the Company or any of its Subsidiaries party thereto, enforceable against the Company or any of its Subsidiaries in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and to general equity principles, and, to the Knowledge of the Company, each other party thereto, and is in full force and effect, subject to rules of Law governing specific performance, injunctive relief and other equitable remedies, and the Company or any of its Subsidiaries (ito the extent it is a party thereto or bound thereby) and, to the Knowledge of the Company, each other party thereto has performed in all material respects all obligations required to be performed by it under each Material Contract. Except as has not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, neither the Company nor any of its Subsidiaries is (Subsidiaries, and, to the Knowledge of the Company, no other party isthereto, is (or, with or without notice or lapse of time or both would be) in default or breach in any material respect under the terms of any Company such Material ContractContract and, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not no event has occurred that (with or without the notice or lapse of time or the giving of noticeboth) will, or bothwould reasonably be expected to, (A) constitute such a violation or breach, (B) give any Person the right to accelerate the maturity or performance of any Material Contract or (C) give any Person the right to cancel, terminate or modify in breach thereunder and a manner adverse to the Company or its Subsidiaries any Material Contract.
(iv) Except as has not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, since January 2, 2021 through the date of this Agreement, neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, andin writing (or, to the Knowledge of the Company, no party has threatened by oral communication) any notice of any violation or breach of, default under or intention to cancel, terminate, adversely modify or not renew, any Company Material Contract.
Appears in 1 contract
Sources: Merger Agreement (Irobot Corp)
Material Contracts. (a) Section 3.9(aSchedule 4.13(a) of the Company Disclosure Letter hereto sets forth a true and complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or Contracts to which the Company or is a party, by which any of its Subsidiaries them is bound or otherwise relating or affecting any of their respective assets, properties or assets is subject:operations, in each of the following categories (each, a “Company Material Contract”):
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedeach partnership, limited liability company or joint venture agreement;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage each Contract (or other evidence group of Indebtedness or agreement providing related Contracts) for Indebtedness the purchase by the Company of goods and/or services involving total annual payments in excess of $100,000100,000 in 2007 or 2008;
(iii) each Contract (other than this Agreementor group of related Contracts) for the sale by the Company of any goods and/or services involving total annual revenues in excess of its assets after the date hereof (other than sales of inventory, product $100,000 in 2007 or obsolete equipment in the ordinary course of business consistent with past practice)2008;
(iv) settlement agreement each Contract (or similar Contract with group of related Contracts) relating to a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeDebt Obligation;
(v) any each Contract containing covenants binding upon the Companyrelating to a loan or advance to, or investment in, any of its Subsidiaries, Person or any agreement, contract, commitment or understanding relating to the making of their respective Affiliates any such loan, advance or investment;
(including Parent and its Affiliates after the Effective Timevi) that materially restricts each Contract limiting or purporting to limit the ability of the Company to engage or any of its Subsidiaries or such Affiliate to compete in any business, or line of business with any Person person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent with any member or materially delay any Affiliate of the Company from performing its obligations under this Agreement in (including any material respectSeller);
(viii) any labor union, management service, employment, consulting or other similar type of Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to obligating the Company or its Subsidiaries and purports that would obligate or require any subsequent owner of the Company to bind their respective Affiliates (including Parent provide for indemnification or its Affiliates after the Effective Time)contribution with respect to any matter;
(x) any Government Contractsales, distributorship, agency or similar agreement relating to the products sold or services provided by the Company;
(xi) any Related Party license, royalty or similar Contract;
(xii) any Company IP Agreements other than Contract (Aor group of related Contracts) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property not entered into in the ordinary course of business consistent with past practice with customers of practices and not cancelable by the Company, without penalty to the Company, within 30 calendar days; or
(xiii) any other Contract that might reasonably be expected to be material to the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any business. Each of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a))above, whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effectset forth on Schedule 4.13(b) hereto, (i) neither the Company nor any of its Subsidiaries each such Contract is (and, to the Knowledge of the Company, no other party isA) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, effect and is the valid, a valid and binding and enforceable obligation of the Company and its Subsidiaries(B) to Company’s Knowledge, a valid and binding obligation of each other party thereto, (ii)(A) the Company is not in breach thereof or default thereunder (and no event or circumstance has occurred that with notice or lapse of time, or both, would constitute an event of default), (B) to the Knowledge of the Company’s Knowledge, of the no other parties thereto, subject party to the General Enforceability Exceptions, any such Contract is in breach thereof or default thereunder and (iii) there is no pending or, to Company’s Knowledge, threatened litigation with respect to any such Contract.
(c) Except as set forth on Schedule 4.13(c) hereto, the Company enforceability of the Contracts set forth on Schedule 4.13(a) hereto will not be affected in any manner by the execution and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse delivery of time this Agreement or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge consummation of the Companytransactions contemplated hereby, no party has threatened nor will the counterparties thereto be subject to terminate, any Company Material Contractadditional rights or privileges thereunder as a result thereof because of a “change of control” or otherwise.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Lufkin Industries Inc)
Material Contracts. (a) Section 3.9(a) As of the date hereof, except as set forth on Schedule 4.18 of the Company Disclosure Letter sets forth Schedule or disclosed in the Recent Company SEC Documents, neither the Company nor any of its Subsidiaries is a complete and correct list as party to or bound by:
(i) any Contract which contains restrictions with respect to payment of dividends or any other distribution in respect of the date capital stock or other equity interests of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedSubsidiaries;
(ii) indentureany Contract relating to development, credit agreementconstruction, loan agreementcapital expenditures or purchases of material, security agreementsupplies, guarantee, note, mortgage equipment or other evidence of Indebtedness assets or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract properties (other than this Agreement) purchase orders for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment such items in the ordinary course of business consistent with past practice);
(ivbusiness) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance in each case requiring aggregate payments by the Company or any of its Subsidiaries or in excess of $2,000,000 during their remaining term following the Closing Date;
(iii) any of their respective Affiliates Contract relating to (including Parent and its Affiliates after the Effective TimeA) or (B) that restricts in any respect the operations or conduct Indebtedness of the Company or any of its Subsidiaries in excess of $1,500,000, (B) any guarantee or assumption of other obligations or reimbursement of any maker of their respective Affiliates (including Parent and its Affiliates after a letter of credit except for agreements entered into in the Effective Time), ordinary course consistent with past practice which agreements relate to obligations which do not exceed $1,500,000 in any the aggregate for all such case, which is material to the Company and its Subsidiaries, taken as a wholeagreements;
(viv) any Contract containing covenants binding upon the Company, limiting in any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts material respect the ability of the Company or any of its Subsidiaries to engage in the Business or such Affiliate to compete in such Business with any businessPerson;
(v) any confidentiality agreements entered into by the Company with a Third Party since January 1, 2004 relating to any actual or potential business combination, merger, sale of the Company, a sale or other divestiture in a single or series of related transactions of more than 25% of the Company’s capital stock, assets or operations, or any other transaction that would reasonably be expected to result in a change of control of the Company (each a “Third Party Confidentiality Agreement”);
(vi) any hedging agreement or other financial agreement or arrangement designed to protect the Company or its Subsidiaries against fluctuations in commodities prices or exchange rates;
(vii) any Contract or executed binding letter of intent involving the future disposition or acquisition of assets or Properties, or any merger, consolidation or similar business combination transaction;
(viii) any Contract involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, joint development or similar arrangement (other than Contracts with any Person respect to Indebtedness), in each case involving aggregate payments or in any geographic area, except for any such Contract that may be canceled without penalty obligations by the Company or any of its Subsidiaries upon notice in excess of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement$500,000;
(ix) any Contract that contains involving any exclusivity rights resolution or “most favored nations” provisions settlement of any actual or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a wholethreatened litigation, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses arbitration, claim or other non-exclusive grants by dispute which has not been fully performed, other than, in each case, any such Contracts concerning the Company routine collection of rights in, to or under Company Intellectual Property debts entered into in the ordinary course of business consistent with past practice with customers of and other than, in each case, providing for payments under any such Contract by the Company or any of its Subsidiaries in an amount less than $75,000;
(x) other than the Articles of Incorporation, the By-Laws or applicable insurance policies, any Contract providing for continuing indemnification of any of the Company’s directors, officers or employees (except, in each case, for reimbursement of employment related costs or expenses in the ordinary course);
(xi) any management agreement to which the Company or any of its Subsidiaries is a party as manager;
(xii) any guarantee of third party obligations by the Company or any of its Subsidiaries; and;
(xiii) any lease for real property in which the amount of payments which the Company is required to make on an annual basis exceeds $100,000;
(xiv) any Contract with an accounting firm, consultant or advisor related to compliance with any Legal Requirements of the Securities and Exchange Commission or other Contracts jurisdictional equivalents thereto;
(other than this Agreement, purchase orders in xv) any Contract entered into outside of the ordinary course of business consistent with past practice, agreements between (including any lease or sublease to which the Company and or any of its wholly owned Subsidiaries is party as lessor or between tenant outside of the ordinary course of business) not disclosed pursuant to any other clause of this Section 4.18 or involving payments or obligations in excess of $200,000 by the Company or any of its Subsidiaries which are not terminable by the Company’s wholly owned Subsidiaries) that contain obligations (including Company or its Subsidiaries without penalty or premium on sixty days prior notice; The foregoing Contracts to which the Company or any of its Subsidiaries is a party or are bound are collectively referred to herein as the “earnoutCompany Material Contracts.” or other contingent payment obligations) that would reasonably be expected to result Notwithstanding anything above, in the receipt case of clauses (ii), (iii), (vi), (vii), (viii), (xi), and (xii), Company Material Contracts shall not include any Contract that (1) is terminable upon less than 60-days notice without penalty or making premium, (2) will be fully satisfied at or prior to the Closing or (3) provides for aggregate payments by the Company or any of its Subsidiaries of payments in the future in excess of less than $100,000 per annum or $500,000 200,000 during the life remaining term of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of following the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material ContractClosing Date.”
(b) True and correct Neither the Company nor any of its Subsidiaries are in all material respects copies breach or default and, to the Company’s Knowledge, no other party to any of each the Company Material Contract have been made available to Parent Contracts is in breach or publicly filed default (and no event has occurred which with notice or the SEC prior to lapse of time or both would constitute a default or violation) under any of the date hereof. Except as would not reasonably be expected to haveCompany Material Contracts, except for such defaults which, individually or in the aggregate, would not be reasonably expected to have a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Material Contracts. (a) To the Knowledge of Seller, as of the date hereof, Parts I and II of Section 3.9(a3.8(a) of the Company Disclosure Letter sets forth Schedule, together, constitute a true and complete and correct list as of all of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following Contracts to which the Company is a party or any of by which the Company and/or its Subsidiaries or any of their respective properties or assets is subject:are bound (the “Material Contracts”):
(i) Contract (other than this Agreement) that is required to be filed by Contracts evidencing any obligations of the Company as a material contract pursuant with respect to Item 601(b)(10) the issuance, sale, repurchase or redemption of Regulation S-K any Equity Securities of the SEC but is not so filed;Company; CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934.
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the all Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements IP Agreements that are material to the Company and its Subsidiaries taken as a wholeoperation of the business of the Company, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property “material transfer agreements” in customary form entered into in the ordinary course of business consistent with past practice with customers business;
(iii) Contracts relating to any Litigation involving the Company at any time since the acquisition of the Company or its Subsidiaries; andby an Affiliate of Seller;
(xiiiiv) other Contracts (other than this Agreement, purchase orders in limiting the ordinary course freedom of business consistent with past practice, agreements between the Company and to engage in any line of its wholly owned Subsidiaries business, acquire any entity or between compete with any Person or in any market or geographical area;
(v) Contracts concerning any joint venture, or any research, development, manufacturing or commercialization collaboration or partnership;
(vi) Contracts to supply or manufacture any materials for any third party;
(vii) Contracts with any director or officer of the Company’s wholly owned Subsidiaries;
(viii) that contain obligations (including “earnout” all Contracts not otherwise listed above involving reasonably anticipated payments to or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by from the Company or any of its Subsidiaries of payments in the future in excess of $100,000 250,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractannum.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Sources: Stock Purchase Agreement (Alnylam Pharmaceuticals, Inc.)
Material Contracts. (a) Section 3.9(aSchedules 2.17(a)(i) through (xxiii) of the Company Disclosure Letter sets forth a complete and correct list identifies, in each subpart that corresponds to the subsection listed below, any Contract in effect as of the date Agreement Date pursuant to which the Company or any of this Agreementthe Subsidiaries is a party, excluding has ongoing obligations or is otherwise bound or under which the Company or any Subsidiary has any right or interest (other than any Contract that (1) nondisclosure agreements entered into (x) is in the ordinary course of business or relates to a Company Plan, (y) relates exclusively in connection with discussions, negotiations and transactions related to this Agreement or other potential strategic transactions and (2) that is a Company Employee Plan) (collectively, the BBGS Business “Material Contracts”): 38
(i) any Contract with a Significant Payor, a Significant Supplier or a Significant Originator;
(zii) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its the Subsidiaries has received, or is expected to receive, payments in excess of $250,000 per year;
(iii) any current Contract under which the Company or future rightsany of the Subsidiaries has paid, obligations or liabilities is expected to pay, amounts in excess of $250,000 to any other Person over the life of such Contract;
(iv) any material dealer, distributor, reseller, referral, sales agent, partner or similar agreement with any third party;
(v) any Contract pursuant to which the Company or any of its the Subsidiaries is obligated to pay any royalties, fees or other payments to any Person with respect to the marketing, sale, distribution, manufacture, license or use of their respective properties any Company Products or assets is subject:
(i) Contract Company Intellectual Property (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent business);
(vi) (A) any joint venture Contract, or (B) any Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with past practice any third party;
(vii) any separation agreement, severance agreement, change in control agreement, retention agreement, transaction bonus agreement or Contract, in each case, providing for the payment of compensation or benefits upon, or in connection with, the Transactions to any current or former employees under which the Company or any of the Subsidiaries has any actual or potential Liability in connection with customers the Transactions;
(viii) any Contract (A) pursuant to which any other party is granted exclusive rights or “most favored party” rights of any type or scope with respect to any of the Company Products or Company Intellectual Property, (B) containing any non-competition covenants or other restrictions relating to the Company Products or Company Intellectual Property, (C) that limits or would limit the freedom of the Company or its any of the Subsidiaries or any of their respective successors or assigns or their respective Affiliates to (I) engage or participate, or compete with any other Person, in any line of business, market or geographic area with respect to the Company Products or the Company Intellectual Property, or to make use of any Company Intellectual Property, including any grants by the Company or the Subsidiaries of exclusive rights or licenses or (II) sell, distribute or manufacture any products or services or to purchase or otherwise obtain any components, supplies, parts or services; or (D) containing any “take or pay,” minimum commitments or similar provisions;
(ix) any Company Intellectual Property Agreements; provided that for purposes of disclosure as required under this Section 2.17(a)(ix), the Company shall not be required to list “shrink wrap,” “click wrap,” software as a service, subscription and similar end user Contracts for Third-Party Intellectual Property that is generally, commercially available software or provides for software or cloud services and that (A) is not material to the Company, (B) is not incorporated in or embodied in a Company Product, (C) has not been modified or customized for the Company, and (D) is licensed for an annual fee under $25,000;
(x) any Contracts relating to the membership of, or participation by, the Company or any of the Subsidiaries in, or the affiliation of the Company or any of the Subsidiaries with, any industry standards organization, body, working group or any similar organization;
(xi) any Contract providing for the development of any technology or Intellectual Property Rights, independently or jointly, either by or for the Company or any of the Subsidiaries (other than employee invention assignment agreements and consulting agreements with Company Authors on the Company’s or any of the Subsidiaries; and’ standard form of agreement, copies of which have been made available to Acquirer);
(xii) any Contract to license or authorize any third party to manufacture or reproduce any of the Company Products or Company Intellectual Property;
(xiii) other Contracts any Contract involving (other than this Agreement, purchase orders in A) the ordinary course provision of business consistent material services or products with past practice, agreements between the Company and respect to any of its wholly owned Subsidiaries pre-clinical or between any clinical development activities of the Company’s wholly owned Subsidiaries; or (B) that contain obligations (including “earnout” involving any collaboration, co-development or other contingent payment obligations) similar arrangement under which the Company has continuing obligations to develop or market any product, technology or service, or any agreement pursuant to which the Company has continuing obligations to develop any Intellectual Property that would reasonably will not be expected to result owned, in the receipt whole or making in part, by the Company or any of the Subsidiaries;
(xiv) any material settlement agreement, or any litigation standstill or tolling agreement, with respect to any Legal Proceeding;
(xv) any Contract with any labor union or any collective bargaining agreement or similar Contract with its Subsidiaries employees;
(xvi) any trust indenture, mortgage, promissory note, loan agreement or other Contract for the borrowing of payments money, any currency exchange, commodities or other hedging arrangement or any leasing transaction of the type required to be capitalized in accordance with GAAP;
(xvii) any Contract of guarantee, surety or any similar commitment with respect to the Liabilities or indebtedness of any other Person;
(xviii) any Contract providing for capital expenditures after the Agreement Date in excess of $250,000 in the future aggregate;
(xix) any Contract pursuant to which the Company or any of the Subsidiaries is a lessor or lessee of any real property or any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property involving expenditures in excess of $100,000 per annum annum;
(xx) any Contract with any investment banker, broker, advisor or $500,000 during similar party retained by the life Company or any of the Subsidiaries in connection with this Agreement, the Transactions and/or the Initial Public Offering;
(xxi) any Contract pursuant to which the Company or any of the Subsidiaries has acquired a business or entity, or assets of a business or entity, whether by way of merger, consolidation, purchase of stock, purchase of assets, license or otherwise, or any Contract pursuant to which it has any Equity Interest or other material ownership interest in any other Person (other than the acquisition of raw materials, supplies or other inventory, and non-exclusive licenses entered into, in the ordinary course of business);
(xxii) any Contract that constitutes or relates to any (A) prime contract, subcontract, letter contract, purchase order or delivery order executed or submitted to or on behalf of any Governmental Entity or any prime contractor or higher-tier subcontractor, or under which any Governmental Entity or any such prime contractor or subcontractor otherwise has or may acquire any right or interest, or (B) quotation, bid or proposal submitted to any Governmental 40 Entity or any proposed prime contractor or higher-tier subcontractor of any Governmental Entity (each a “Government Contract. Each such ”); and
(xxiii) any Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause otherwise scheduled in one of the other categories described in this Section 2.17(a) that contemplates or involves: (xA) the payment or delivery of cash or other consideration in an amount or having a value in excess of $500,000 in the aggregate; or (yB) the performance of services having a value in excess of $500,000 in the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractaggregate.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge Each of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation as of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect toAgreement Date, and, to the Knowledge of the Company, with respect to each party thereto other than the Company or any of the Subsidiaries is valid and binding and in full force and effect, subject only to the effect, if any, of applicable bankruptcy and other similar Applicable Law affecting the rights of creditors generally and rules of law governing specific performance, injunctive relief and other equitable remedies. There exists no material default or event of default or event, occurrence, condition or act, with respect to the Company or the Subsidiaries or, to the Knowledge of the Company, with respect to any other contracting party, that, with the giving of notice, the lapse of time or the happening of any other event or condition, would reasonably be expected to (i) become a material default, material breach or event of default under any Material Contract or (ii) give any party (other than the Company or any Subsidiary) (A) the right to declare a default or exercise any remedy under any Material Contract, (B) the right to a rebate, chargeback, refund, credit, penalty or change in delivery schedule under any Material Contract, (C) the right to accelerate the maturity or performance of any obligation of the Company or the Subsidiaries under any Material Contract, or (D) the right to cancel, terminate or modify any Material Contract. Neither the Company nor any of the Subsidiaries has received any written notice or, to the Knowledge of the Company, other formal communication regarding any unresolved actual or alleged material violation or material breach of, material default under, or intention to cancel or materially and adversely modify any Material Contract. As of the Agreement Date, to the Knowledge of the Company, no Person has threatened to terminateterminate or refuse to perform its obligations under any Material Contract (regardless of whether such Person has the right to do so under such Contract). True, any correct and complete copies of all Material Contracts in written form have been made available to Acquirer.
(c) Except as set forth in the Company Disclosure Letter, all Material ContractContracts are in written form.
Appears in 1 contract
Sources: Merger Agreement (Veracyte, Inc.)
Material Contracts. (a) Section 3.9(a4.7(a) of the Company Disclosure Letter sets forth a complete and correct list as Schedules lists each of the date of this Agreementfollowing Contracts, excluding any Contract that other than Contracts related to TruVue, (x) is by which any of the Purchased Assets are bound or relates to a Company Plan, affected or (y) relates exclusively to which Seller is a party or by which it is bound in connection with the BBGS Business or the Purchased Assets (zsuch Contracts, together with all Contracts relating to Intellectual Property set forth in Section 4.10(c) is filed as an exhibit to any Company SEC Documentof the Disclosure Schedule, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:being “Material Contracts”):
(i) Contract (other all Contracts involving aggregate consideration in excess of $20,000 and which, in each case, cannot be cancelled without penalty or without more than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed90 days’ notice;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage all Contracts that require Seller to purchase or other evidence sell a stated portion of Indebtedness the requirements or agreement providing for Indebtedness in excess outputs of $100,000the Business or that contain “take or pay” provisions;
(iii) Contract (other than this Agreement) all Contracts that provide for the sale indemnification of any Person or the assumption of its assets after the date hereof (any Tax, environmental or other than sales Liability of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)any Person;
(iv) settlement agreement all Contracts that relate to the acquisition or similar Contract with disposition of any business, a Governmental Entity (A) involving future performance by the Company material amount of stock or assets of any other Person or any real property (whether by merger, sale of its Subsidiaries stock, sale of assets or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Timeotherwise), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) all Contracts with a physician, an immediate family member of a physician (as that term is defined in 42 C.F.R. § 411.351) or any other referral source, including any Contract containing covenants binding upon with a pharmacy or any other supplier of medical products to patients of the CompanySeller in connection with the Business or the Purchased Assets;
(vi) all Contracts with an entity in which a referring physician (as that term is defined in 42 U.S.C. § 1395nn(h)(7)) or a referring physician’s immediate family member has an ownership or investment interest;
(vii) all Contracts requiring the payment by the Seller of a royalty, override or similar commission or fee of more than $25,000 in any one year;
(viii) all Contracts that provide or give any express warranty to customers with respect to any of its Subsidiariesthe products or services of the Business;
(ix) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(x) all employment agreements and Contracts with independent contractors or consultants (or similar arrangements) and which are not cancellable without material penalty or without more than ninety (90) days’ notice;
(xi) except for Contracts relating to trade receivables, all Contracts relating to indebtedness (including, without limitation, guarantees);
(xii) all Contracts with any of their respective Affiliates Governmental Authority;
(including Parent and its Affiliates after the Effective Timexiii) all Contracts that materially restricts limit or purport to limit the ability of the Company or any of its Subsidiaries or such Affiliate Seller to compete in any business, line of business or with any Person or in any geographic area, except for area or during any such Contract that may be canceled without penalty by the Company or any period of its Subsidiaries upon notice of 60 days or lesstime;
(vixiv) all joint venture, partnership or similar Contracts;
(xv) all Contracts for the sale of any Contract of the Purchased Assets or for the grant to any Person of any option, right of first refusal or preferential or similar right to purchase any of the Purchased Assets;
(xvi) all powers of attorney with respect to a joint venture the Business or partnership formed under the laws of any applicable jurisdictionPurchased Asset;
(viixvii) all collective bargaining agreements or Contracts with any Contract that would prevent labor organization, union or materially delay the Company from performing its obligations under this Agreement in any material respect;association; and
(viiixviii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements all other Contracts that are material to the Company and its Subsidiaries taken as a whole, Purchased Assets or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers operation of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company Business and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded previously disclosed pursuant to clause (x) or (y) of the lead-in language in this Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract4.7.”
(b) True Each Material Assigned Contract is valid and correct binding on Seller in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed accordance with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts terms and is in full force and effect. None of Seller or, and to Seller’s Knowledge, any other party thereto is the valid, binding and enforceable obligation in material breach of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, or material default under (iii) the Company and its Subsidiaries have performed all obligations required or is alleged to be performed by them in material breach of or material default under), or has provided or received any notice of any intention to date under the Company terminate, any Material Contracts and are not (Assigned Contract. No event or circumstance has occurred that, with notice or without the lapse of time or both, would constitute an event of default under any Material Assigned Contract or result in a termination thereof or would cause or permit the giving acceleration or other changes of noticeany right or obligation or the loss of any benefit thereunder. Complete and correct copies of each Material Assigned Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been made available to Buyer. There are no material disputes pending or boththreatened under any Material Assigned Contract.
(c) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge Each of the Company, oral arrangements set forth in Section 4.7(c) of the Disclosure Schedules (each an “Oral Agreement”) is terminable at any time (for any reason) at no party cost to Seller. Seller has threatened to terminate, no obligations under any Company Material Contractsuch Oral Agreement other than the provision of services thereunder.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a) Schedule 3.09 of the Company Disclosure Letter Schedules sets forth a complete the following Contracts (including all modifications, amendments, and correct list as of the date of this Agreement, excluding any Contract that (xsupplements thereto) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company is a party or by which it is, or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:are, bound (collectively, the “Material Contracts”):
(i) each Contract (other than this Agreement) that is required to be filed by with a customer providing for the Company as a material contract pursuant to Item 601(b)(10) purchase and sale of Regulation S-K of the SEC but is not so filedproducts;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage all Contracts that require the Company to purchase its total requirements of any product or other evidence of Indebtedness service from a third party or agreement providing for Indebtedness in excess of $100,000that contain "take or pay" provisions;
(iii) Contract (other than this Agreement) all Contracts that provide for the sale indemnification by the Company of any Person or the assumption of its assets after the date hereof (any Tax, environmental or other than sales liability of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)any Person;
(iv) settlement agreement all Contracts that relate to the acquisition or similar Contract with disposition of any business, a Governmental Entity (A) involving future performance by the Company material amount of equity or assets of any other Person or any real property (whether by merger, sale of its Subsidiaries stock or any other equity interests, sale of their respective Affiliates (including Parent and its Affiliates after the Effective Time) assets or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Timeotherwise), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) all broker, 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 consultants (or similar arrangements);
(vii) all Contracts relating to indebtedness for borrowed money;
(viii) all Contracts with any Contract containing covenants binding upon the Company, any of its Subsidiaries, Governmental Authority;
(ix) all Contracts that limit or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts purport to limit the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic area, except for area or during any such Contract that may be canceled without penalty by the Company or any period of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)time;
(x) any Government Contract;Contracts that provide for any joint venture, partnership or similar arrangement by the Company; and
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses all Contracts between or (B) Contracts including non-exclusive licenses or other non-exclusive grants by among the Company on the one hand and Seller or any Affiliate of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts Seller (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or on the other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contracthand.”
(b) True and correct in all material respects copies of each Company Each Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, effect and is a valid and binding agreement enforceable against the validCompany and, binding and enforceable obligation to the Seller's Knowledge, the other parties or parties thereto, in accordance with its terms. None of the Company and its Subsidiariesor, and to the Knowledge Seller’s Knowledge, any other party thereto is in breach of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, or default under (iii) the Company and its Subsidiaries have performed all obligations required or is alleged to be performed by them in breach of or default under), or has provided or received any notice of any intention to date under the Company terminate, any Material Contracts and are not (Contract. No event or circumstance has occurred that, with notice or without the lapse of time or both, would constitute a breach or an event of default under any Material Contract or result in a termination thereof or would cause or permit the giving acceleration or other changes of notice, any right or both) in breach thereunder and (iv) neither obligation or the Company nor loss of any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contractbenefit thereunder.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Envirotech Vehicles, Inc.)
Material Contracts. (a) Section 3.9(a) 3.22 of the Company ------------------ Disclosure Letter sets forth a complete and correct list as Schedule lists all of the date following types of this Agreement, excluding any Contract that (x) is contracts or relates arrangements to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any Company Subsidiary is a party or by which any of its Subsidiaries has any current their respective properties or future rightsassets are bound:
(i) all Client Contracts (as defined below) (A) which are "fixed- price," "guaranteed maximum price" or similar contracts, obligations or liabilities or (B) pursuant to which the Company or any of its the Company Subsidiaries has responsibility for any construction activity and (C) with a total contract value in excess of $5,000,000, including all such contracts involving a joint venture, partnership or teaming arrangement of the Company or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation SSubsidiaries with another party (collectively, the "Fixed-K of the SEC but is not so filed;Price ----------- Construction Contracts"); ----------------------
(ii) indenture, credit any agreement, loan agreementother than Client Contracts and purchase orders or sub-contracts associated with Client Contracts, security agreementpresently in effect for the purchase of inventory, guaranteesupplies, note, mortgage equipment or other evidence personal property, or the procurement of Indebtedness services, except individual purchase orders or agreement providing for Indebtedness in excess aggregate purchase orders to a single vendor involving payments of less than $100,000500,000;
(iii) Contract any lease presently in effect or ownership of equipment, machinery or other personal property involving aggregate annual payments in excess of $500,000;
(iv) any agreement presently in effect relating to the purchase or acquisition, by merger or otherwise, of a significant portion of its business, assets or securities by any other Person, or of any other Person by it, other than this Agreementas contemplated herein;
(v) for the sale of any agreement presently in effect containing a covenant or covenants which purport to limit its ability or right to engage in any lawful business activity material to it or to compete with any Person in a business material to it;
(vi) any agreement presently in effect pursuant to which it has appointed any Person to act as its sales agent or pursuant to which it has been appointed a sales agent by any third party;
(vii) any agreement presently in effect with any of its assets after officers or directors and any material agreement presently in effect with any of its employees or affiliates, not otherwise listed on Section 3.14(d) of the date hereof Company Disclosure Schedule, including all non-competition and indemnification agreements;
(viii) any agreement presently in effect for the license of any patent, copyright, trade secret or other than sales proprietary information agreements involving the payment by or to the Company or any Company Subsidiary in excess of inventory, product or obsolete equipment in $500,000 per year;
(ix) any agreement entered into outside the ordinary course of business consistent and presently in effect, involving payments to or obligations of in excess of $500,000, not otherwise described in this Section 3.22, and other than Client Contracts; and
(x) any loan agreement, agreement of indebtedness, note, security agreement, guarantee or other document pursuant to or in connection with past practicethe Company's or any of the Company Subsidiaries' receipt or extension of credit in excess of $500,000 other than in connection with Client Contracts (items listed in (i) through (x) are collectively referred to herein as the "Contracts");. ---------
(b) The Company has delivered or otherwise made available to ▇▇▇▇▇▇ and its representatives all Contracts, Client Contracts and all Bids (as defined below) for Fixed-Price Construction Contracts (and all amendments, modifications and supplements thereto and all side letters to which the Company or any Company Subsidiary is a party affecting the obligations of any party thereunder).
(c) Except as set forth in Section 3.22(c) of the Company Disclosure Schedule (and with respect to clauses (i), (ii), (iii), (iv) settlement agreement and (v) below, except as otherwise would not reasonably be expected to have a Company Material Adverse Effect):
(i) There is no default under any Contract or similar Client Contract with a Governmental Entity (A) involving future performance either by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (andor, to the Knowledge knowledge of the Company, no by any other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effectthereto, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (no event has occurred that with or without the lapse of time or the giving of notice, notice or both) in breach both would constitute a default thereunder and (iv) neither by the Company nor or any of its the Company Subsidiaries has received any notice of termination with respect to, andor, to the Knowledge knowledge of the Company, any other party;
(ii) No party to any Contract or Client Contract has given notice to the Company or any Company Subsidiary of or made a claim against the Company or any Company Subsidiary with respect to any breach or default thereunder;
(iii) To the knowledge of the Company, no party to any Contract or Client Contract intends to cancel, withdraw, modify or amend any such Contract or Client Contract;
(iv) With respect to each and every Client Contract or Bid, (a) the Company has threatened fully complied with all terms and conditions of such Client Contract or Bid, including all clauses, provisions and requirements incorporated expressly, by reference or by operation of law therein; (b) the Company has fully complied with all requirements of any statute, rule, regulation or order of any Governmental Authority or any agreement, pertaining to terminatesuch Client Contract or Bid, including the International Trade in Arms Regulation; (c) all representations and certifications executed, acknowledged or set forth in or pertaining to such Client Contract or Bid were current, accurate and complete as of their effective date, and the Company has fully complied with all such representations and certifications, including, without limitation, all representations and certifications required by or relating to the Truth-In-Negotiations-Act, the Procurement Integrity Act, the Foreign Corrupt Practices Act, the Cost Accounting Standards, the regulations and rules relating to Foreign Military Sales 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 the Company, either orally or in writing, that the Company 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; (f) no cost incurred by the Company has been questioned or disallowed; and (g) no money due to the Company has been withheld or set off;
(v) There exist (a) no financing arrangements with respect to performance of any Client Contract; (b) no outstanding claims or requests for equitable or financial adjustments against the Company or any of the Company Subsidiaries, either by any party to a Client Contract, any Governmental Authority or by any prime contractor, subcontractor, vendor or other third party, arising under or relating to any Client Contract or Bid; (c) no facts that are known by the Company Material or any of the Company Subsidiaries upon which such a claim may be validly based in the future; (d) no disputes between the Company or any of the Company Subsidiaries and any party to a Client Contract, any Governmental Authority or any prime contractor, subcontractor or vendor arising under or relating to any Client Contract or Bid; and (e) no facts that are known by the Company or any of the Company Subsidiaries over which such a dispute may validly arise in the future; and
(vi) There exists no uncompleted Client Contract as to which the Company's estimated cost at completion (including material and labor costs, other direct costs, overheads, engineering costs and manufacturing costs, whether incurred or yet to be incurred) as of the Company Balance Sheet Date exceeds by $500,000 the aggregate contract revenue recorded or to be recorded under such Client Contract through completion (a "Loss Contract"). ------------- For purposes of this Agreement, "Client Contract" means any contract, --------------- subcontract, teaming agreement or arrangement, joint venture, basic ordering agreement, letter contract, purchase order, delivery order, change order, or other enforceable commitment of any kind relating to the business of the Company or any of the Company Subsidiaries pursuant to which the Company or any of the Company Subsidiaries has derived, or is expected to derive, any revenue. For purposes of this Agreement, "Government Contract" means (a) any Client ------------------- Contract between the Company or any of the Company Subsidiaries and (i) any Governmental Authority, (ii) any prime contractor to any Governmental Authority, or (iii) any subcontractor with respect to any contract described in clause (i) or (ii) and (b) any Client Contract which is wholly or partially funded by, directly or indirectly, or through any Governmental Authority. For purposes of this Agreement, "Bid" means any quotation, bid or proposal --- by the Company or any of the Company Subsidiaries which, if accepted or awarded, would lead to a Fixed-Price Construction Contract.
Appears in 1 contract
Sources: Merger Agreement (Jacobs Engineering Group Inc /De/)
Material Contracts. Except for the Contracts set out in Section 3.26 of the Seller Disclosure Letter (the Material Contracts), the Leases, the Employee Material Contracts, the Employee Plans and the License Agreements, the Corporation is not a party to or bound by any Contract material to the Corporation, the Business or the Assets including:
(a) Section 3.9(aany distributor, sales or advertising Contract;
(b) any Contract for the purchase or sale of materials, supplies, equipment or services (i) involving, in the case of any such Contract, the payment by the Corporation of more than $100,000 in aggregate in any 12-month period, or (ii) which contains minimum purchase commitments or requirements or other terms that restrict or limit the purchasing or selling ability of the Company Disclosure Letter sets forth Corporation;
(c) any Contract that expires, or may be renewed at the option of a complete and correct list Person other than the Corporation so as of to expire, more than one year after the date of this Agreement;
(d) any promissory note, excluding loan agreement or other Contract for the borrowing of money, any Contract that (x) is currency exchange, commodities or relates to a Company Plan, (y) relates exclusively to the BBGS Business other hedging or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company swap arrangement or any leasing transaction of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is type required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedcapitalized in accordance with IFRS;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(ve) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future capital expenditures in excess of $100,000 per annum or $500,000 during in the life aggregate;
(f) any Contract limiting the freedom of the Contract. Each such Corporation to engage in any line of business, compete with any Person, or operate its assets at maximum production capacity or otherwise materially restricting its ability to carry on the Business;
(g) any Contract described in clauses with an Affiliate of the Corporation or any other Person with whom the Corporation or the Seller does not deal at arm’s length;
(h) any agreement of guarantee, support, indemnification or assumption or any similar commitment with respect to the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or indebtedness of any other Person;
(i) – any partnership, joint venture, or other similar Contract, any Contract involving a sharing of profits with any Person or any Contract relating to the acquisition or disposition of any business (xiiiwhether by merger, sale of shares, sale of assets or otherwise);
(j) any Contract relating to grants or other forms of assistance received by the Corporation from any Governmental Authority; or
(that is not excluded pursuant k) any Contract material to clause (x) the Business or (y) any of the lead-in language in Section 3.9(a)), whether Assets or not set forth on Section 3.9(a) any Contract made outside of the Company Disclosure LetterOrdinary Course. True, is referred to herein as a “Company Material Contract.”
(b) True correct and correct in all material respects complete copies of each Company all Material Contract Contracts have been made available to Parent or publicly filed with the SEC prior provided to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractPurchaser.
Appears in 1 contract
Sources: Share Purchase Agreement (Enthusiast Gaming Holdings Inc. / Canada)
Material Contracts. (a) Section 3.9(aSet forth on Schedule 4.14(a) is a list of the following Contracts (other than purchase orders and sale orders entered into in the Ordinary Course of Business) to which any Allscripts Company Disclosure Letter sets is a party and that primarily relate to the Hospital & Large Physician Practice Business (the Contracts required to be set forth on Schedule 4.14(a), and such purchase orders and sale orders entered into in the Ordinary Course of Business, collectively, the “Material Contracts”):
(i) each Contract (A) limiting the right of an Allscripts Company to (x) engage in or compete with any Person in any business or in any geographical area or (y) solicit or hire any customer, (B) containing exclusivity or minimum purchase obligations binding on any Allscripts Company or (C) containing any “most favored nation” or similar pricing provision binding on any Allscripts Company or that contains a complete right of first refusal, first offer, first negotiation or any other exclusivity, requirements or output provisions, including any Contract that is considered a so called take-or-pay or keep well Contract;
(ii) each (A) collective bargaining Contract or other Contract with any labor union, organization or association and correct list as (B) Contract with a professional employer organization, temp agency, employee leasing agency or labor contractor;
(iii) each Contract providing for severance, retention, change in control or other similar payments or benefits for any Business Employee;
(iv) each Contract pertaining to (A) employment arrangements with any Business Employee or (B) any independent contractor that, in each case, provides for annual compensation in excess of $200,000;
(v) each Contract with any Allscripts Company or any Affiliate of an Allscripts Company under which the Hospital & Large Physician Practice Business has any liability or obligation to any Allscripts Company or any of the Allscripts Companies’ Affiliates;
(vi) each Contract with a Significant Vendor;
(vii) each Contract with a Significant Customer;
(viii) each outstanding (and not completed) statement of work or purchase order relating to outstanding (and not completed) statements of work issued under any Contract that involves aggregate payments of over $500,000;
(ix) each Contract with any Governmental Authority;
(x) each Contract that is a settlement or conciliation agreement that imposes any obligations upon the Hospital & Large Physician Practice Business or an Acquired Company after the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) each Contract (or group of related Contracts) requiring any Related Party Contractcapital commitment or capital expenditure (or series of capital expenditures) by any Allscripts Company after the date hereof in an amount in excess of $250,000 individually or $500,000 in the aggregate;
(xii) each Contract pursuant to which any Allscripts Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by is the Company lessee of rights inany personal property, to or under Company Intellectual Property entered into which provides for annual payments in the ordinary course excess of business consistent with past practice with customers of the Company or its Subsidiaries; and$250,000;
(xiii) each Lease;
(xiv) each Contract concerning the establishment, control, maintenance or operation of a partnership, joint venture or limited liability company or other Contracts similar agreement or arrangement;
(other than this Agreementxv) each Contract entered into since the Lookback Date relating to the acquisition or disposition of any business (whether by merger, purchase orders in or sale of stock, purchase or sale of assets or otherwise);
(xvi) each Contract relating to Indebtedness;
(xvii) any agreement of guarantee, support, indemnification, assumption or endorsement of, or any other similar commitment with respect to, Liabilities or Indebtedness of any other person entered into outside the ordinary course Ordinary Course of business consistent with past practice, agreements between Business; or
(xviii) any Contract pursuant to which a third-party has the Company and any of its wholly owned Subsidiaries right to distribute or between resell any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” Software or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life products of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material ContractHospital & Large Physician Practice Business.”
(b) True and correct in all material respects copies of each Company Material Contract have been Parent has heretofore made available to Parent or publicly filed with the SEC prior to the date hereofBuyer true and correct copies of all Material Contracts, including all amendments and modifications thereto. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Each Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts Contract is in full force and effecteffect and constitutes a legal, valid and is the valid, binding and enforceable obligation of the Company and its Subsidiariesone or more Allscripts Companies, and and, to the Knowledge of the CompanySellers’ Knowledge, of the other parties thereto, subject only to the General Enforceability Exceptions. There is no breach or default by any Allscripts Company or, (iii) to the Company Sellers’ Knowledge, by any third party under any Material Contract, and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (no event has occurred which, with notice or without the lapse of time or both, would constitute a breach or default or would permit termination, modification or acceleration thereof by any party to such Material Contract. No Allscripts Company has received written notice of the giving intention of noticeany third party under any Material Contract to cancel, terminate or modify the terms of any such Material Contract, or both) in breach thereunder and (iv) neither accelerate the obligations of such Allscripts Company nor any of its Subsidiaries has received any notice of termination with respect tothereunder, andnor, to the Sellers’s Knowledge has any such third party threatened to do any of the Company, no party has threatened to terminate, any Company Material Contractforegoing.
Appears in 1 contract
Sources: Purchase Agreement (Allscripts Healthcare Solutions, Inc.)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as of the date For purposes of this Agreement, excluding any Contract that (x) is a “Material Contract” shall mean the following Contracts primarily relating to or relates to a Company Plan, (y) relates exclusively to used in the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectBusiness:
(i) Contract any “material contract” (other than this Agreement) that as such term is required to be filed by the Company as a material contract pursuant to defined in Item 601(b)(10) of Regulation S-K of the SEC but is not so filedSEC, other than those agreements and arrangements described in Item 601(b)(10)(iii));
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage any employment or other evidence of Indebtedness or agreement consulting Contract providing for Indebtedness an annual base compensation in excess of $100,00050,000;
(iii) any Contract or plan, including any stock option plan, stock appreciation right plan or stock purchase plan, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated, by the consummation of the transactions contemplated hereby or the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated by this Agreement;
(iv) any Contract providing for indemnification (other than this Agreementa Contract with a customer, which is entered into by the Seller or SYC in the ordinary course of its business and substantially similar to the indemnification provisions set forth in other Contracts with customers, forms of which have been provided to or made available to Buyer or any guaranty (in each case, under which Seller or SYC has continuing obligations as of the date hereof);
(v) for any Contract containing any covenant (A) limiting the sale right of Seller or SYC to engage in any line of business, to make use of any material technology or to compete with any Person in any line of business, (B) granting any exclusive rights, (C) prohibiting Seller or SYC (or, after the Closing Date, Buyer or any of its assets Subsidiaries) from engaging in business with any Person or levying a fine, charge or other payment for doing so or (D) otherwise prohibiting or limiting the right of Seller or SYC to distribute or offer any products or services or to purchase or otherwise obtain any software, components, parts or subassemblies in each case, other than any such Contracts that (x) may be cancelled without material liability to Seller or SYC (or, after the Closing Date, to Buyer or any of its Subsidiaries) upon notice of ninety (90) days or less or (y) are not, individually or in the aggregate, material to the Business;
(vi) any Contract (A) relating to the disposition or acquisition by Seller or SYC after the date hereof of this Agreement of a material amount of assets or (B) pursuant to which Seller or SYC will acquire any material ownership interest in any other Person or other business enterprise other than Seller’s Subsidiaries;
(vii) any dealer, distributor, joint marketing or development Contracts (as measured by continuing costs to be incurred by, and fees to be paid by, Seller or SYC) to solely or jointly develop or market any product, technology or service, and which may not be canceled without material liability to Seller or SYC upon notice of thirty (30) days or less;
(viii) any Material IP License;
(ix) any Contract (A) containing any financial penalty for the failure by Seller or SYC to comply with any support or maintenance obligation or (B) containing any obligation to provide support or maintenance for Seller Products for any period in excess of twelve (12) months, other than those obligations that are terminable by Seller or SYC on no more than thirty (30) days notice without material liability or financial obligation to Seller or SYC;
(x) any Contracts containing any service obligation on the part of Seller or SYC, other than (A) warranties provided in the ordinary course of business consistent with past practice and (B) those obligations that are terminable by Seller or SYC on no more than thirty (30) days notice without material liability or financial obligation to Seller or SYC;
(xi) any Contract authorizing another Person to provide support or maintenance to customers of the Business, including distributors or resellers that are obligated to provide such support or maintenance;
(xii) any Contract to license any third party to manufacture or reproduce any Seller Products or any Contract to sell or distribute any Seller Products, except (A) agreements with distributors or sales representatives in the ordinary course of inventory, product business consistent with past practice or obsolete equipment (B) agreements allowing internal copies made or to be made by end-user customers in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(vxiii) any settlement Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses releases immaterial in nature or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property amount entered into with former employees or independent contractors of Seller in the ordinary course of business consistent or (B) settlement agreements for cash only (which has been paid);
(xiv) any Contract which grants any right of first refusal, right of first offer or similar right with past practice respect to any material assets, rights or properties;
(xv) any Contract which limits the payment of dividends;
(xvi) any Contract which relates to a joint venture, partnership, limited liability company agreement or other similar agreement or arrangement, or to the formation, creation or operation, management or control of any partnership or joint venture with customers any third parties;
(xvii) any Contract which relates to an acquisition, divestiture, merger or similar transaction and which contains representations, covenants, indemnities or other obligations (including indemnification, “earn-out” or other contingent obligations) that are still in effect;
(xviii) any Contract entered into since December 31, 2008 or prior to such date which remained unfilled and outstanding with a customer or purchase order from a Customer, in each case providing for payments from that customer of $100,000 or more;
(xix) any Contract or subcontract still in effect that is subject to FAR;
(xx) any other Contract that provides for payment obligations by Seller or SYC of $10,000 or more in any individual case that is not terminable by Seller or SYC (or, after the Company Closing Date, by Buyer or any of its Subsidiaries) upon notice of thirty (30) days or less without material liability to the Business and is not disclosed pursuant to clauses (i) through (xix) above; and
(xiiixxi) other any Contract, or group of Contracts with a Person (other than this Agreementor group of affiliated Persons), purchase orders in the ordinary course termination or breach of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries which would have or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would be reasonably be expected to result in the receipt have a material adverse effect on any material product or making by the Company service offerings of Seller or any of its Subsidiaries of payments in the future in excess of $100,000 per annum SYC or $500,000 during the life of the Contract. Each such Contract described in otherwise have a Business Material Adverse Effect and is not disclosed pursuant to clauses (i) – through (xiiixx) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractabove.”
(b) True Section 3.11(b) of the Seller Disclosure Schedule contains a complete and accurate list of all Material Contracts to or by which Seller or SYC is a party or is bound, and identifies each subsection of Section 3.11(a) that describes such Material Contract. True, correct in all material respects and complete copies of each Company Material Contract all of the Contracts identified on the Seller Disclosure Schedule and all standard terms and conditions of purchase for customer purchase orders have been made available to Parent or publicly filed with the SEC Buyer and its counsel prior to the date hereof. Except as would not reasonably be expected to haveThere are no Contracts between Seller and/or SYC on the one hand, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor and any of its Subsidiaries is (andSeller’s other Subsidiaries, on the other hand, related to the Knowledge Business.
(c) Each Material Contract is valid and binding on Seller (and/or each such Subsidiary of the Company, no other Seller party isthereto) in default under any Company Material Contract, (ii) each of the Company Material Contracts and is in full force and effect, and is the validneither Seller nor SYC, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, andnor, to the Knowledge of the Company, no party has threatened to terminateSeller, any Company other party thereto, is in breach of, or default under, any such Material Contract, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default thereunder by Seller or SYC, or, to the Knowledge of Seller, any other party thereto.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a4.14(a) of the Company Disclosure Letter sets forth Schedule contains a complete and correct list of each Material Contract in force or under which any Group Company has material continuing obligations as of the date of this Agreement, excluding hereof. A “Material Contract” is any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract contract (other than this Agreement) Insurance Contracts and any contracts that is required relate to be filed by the Company as a material contract pursuant to Item 601(b)(10) acquisition, disposition or custody of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its investment assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)) to which any Group Company is a party or is otherwise bound or obligated, in each case, that:
(i) contains covenants limiting the ability of any Group Company in any material respect to engage in any line of business or to compete with any Person that would purport to apply to the Buyer or its Affiliates following the Closing;
(ii) contains any material restriction on the ability of any Group Company or any of their Affiliates to solicit specified customers or prospective customers for the purchase, renewal, lapse, surrender or annuitization of Insurance Contracts or to alter or change the terms, features, benefits, elections or options under the Insurance Contracts, in each case that would purport to apply to the Buyer or its Affiliates following the Closing;
(iii) relates to the acquisition or disposition of any Person or business or a material portion of the assets of any Person or business (whether by merger, sale of stock, sale of assets or otherwise) under which any Group Company has material continuing rights, obligations or liabilities;
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by is between any Group Company, on the Company or one hand, and any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct Affiliate of the Company or any of its Subsidiaries or any of their respective Affiliates Issuer (including Parent and its Affiliates after other than the Effective TimeGroup Companies), in any such case, which is material to on the Company and its Subsidiaries, taken as a whole;other hand; or
(v) obligates any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Group Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered enter into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractforegoing.”
(b) True and correct in all material respects copies of each Company Material Contract have been The Issuer has made available to Parent or publicly filed with the SEC prior to Buyer a complete and correct copy of each Material Contract as of the date hereofof this Agreement. Except as would not reasonably be expected to have, individually or in None of the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (andGroup Companies or, to the Knowledge of the CompanyIssuer, no any other party is) in default under any Company to a Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable material default or material breach or has failed to perform any material obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company a Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect toContract, and, to the Knowledge of the CompanyIssuer, no party has threatened there does not exist any event, condition or omission that would constitute such a material breach or material default (whether by lapse of time or notice or both). None of the Group Companies or, to terminatethe Knowledge of the Issuer, any other party to a material outbound reinsurance agreement to which a Group Company Material Contractis party, is in material default or material breach or has failed to perform any material obligation under such a material outbound reinsurance agreement.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a) For all purposes of the Company Disclosure Letter sets forth a complete and correct list as of the date of under this Agreement, excluding a “Material Contract” shall mean:
(i) any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed “material contract” listed as an exhibit to the Company’s annual report on Form 20-F for the year ending December 31, 2017;
(ii) any Company SEC DocumentContract with a natural person either as an employee or an independent contractor (in each case, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has continuing obligations as of the date hereof) that carries an aggregate annual base salary in excess of $200,000 per annum (excluding Contracts for “at-will” relationships or that are terminable by the Company or the applicable Subsidiary at its discretion, by notice of not more than ninety (90) days for a cost of less than $200,000);
(iii) any currently effective non-statutory severance, termination, golden parachute, change-of-control or similar agreement with any current or future rightsformer director or officer of the Company or any of its Subsidiaries;
(iv) any Contract relating to the sale, obligations issuance, grant, exercise, award, purchase, repurchase or liabilities redemption of any of the Company’s share capital or other securities or any options, warrants or other rights to purchase or otherwise acquire any Company Shares, other securities or options, warrants or other rights therefor, except for the organizational document of the Company or of any Subsidiary of the Company or those Contracts under a Company Share Plan;
(v) collective bargaining agreement or similar material Contract with any labor organization, council, union or association;
(vi) Contract with (A) any current or former officer or director of the Company or any of their immediate family members (other than any Employee Plans), or (B) any “controlling shareholder” of the Company (as defined in the ICL);
(vii) any Contract providing for Governmental Grants from any Governmental Authority;
(viii) any Contract to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) a party that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance contains any covenant by the Company or any of its Subsidiaries to not compete or engage in any line of their respective Affiliates (including Parent and business or to not engage in its Affiliates after the Effective Time) business in any geographic location, or (B) that restricts in any respect the operations development, manufacture, marketing or conduct distribution of the products and services of the Company or any of its Subsidiaries Subsidiaries, including any Contract with any Person granting such Person the exclusive right in any territory to sell or distribute any of their respective Affiliates product, or other Contract providing “most favored nations” pricing terms for products, in each case, with respect to this clause (including Parent and its Affiliates after the Effective TimeB), in any such case, which that is material to the Company and its Subsidiaries, taken as a whole;
(vix) any Contract containing covenants binding upon entered into after December 31, 2015 (A) relating to the Companydisposition, any of its Subsidiaries, acquisition or any of their respective Affiliates lease (including Parent and its Affiliates after the Effective Timedirectly or indirectly) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws material amount of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements assets other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between (B) pursuant to which the Company and or any of its wholly owned Subsidiaries will acquire or between has acquired any material interest in any other Person (other than the Company or any of the Company’s wholly owned its Subsidiaries) that contain obligations or other business enterprise for an amount in excess, in the aggregate, of $5,000,000, or (including C) for the acquisition or disposition of any business and such Contract contains any profit sharing arrangements or “earnoutearn-out” arrangements or other contingent payment obligationsobligations under which obligations are continuing, in each case of the foregoing clauses (A), (B) that would reasonably be expected to result and (C), with any outstanding material obligations of the Company and its Subsidiaries (taken as a whole) as of the date of this Agreement;
(x) any Contract (including any so called take-or-pay or keepwell agreements) under which the Company or any of its Subsidiaries has directly or indirectly guaranteed Indebtedness for borrowed money, liabilities or obligations of any other Person (other than a Subsidiary of the Company) in excess of $1,000,000 (in each case other than endorsements for the purpose of collection in the receipt ordinary course of business consistent with past practice);
(xi) any Contract under which the Company or making any of its Subsidiaries has, directly or indirectly, made any advance, loan, extension of credit or capital contribution to, or other investment in, any Person (other than the Company or any of its Subsidiaries) in excess of $1,000,000 (other than extensions of trade credit in the ordinary course of business consistent with past practice), excluding any cylinder loan Contracts entered into with retailers in the ordinary course of business;
(xii) any Contract granting any Person a right of first refusal or first negotiation with respect to any sale of the Company or substantially all of its shares or assets;
(xiii) any Contract imposing “standstill” obligations on the Company or any of its Subsidiaries;
(xiv) any Contract that contains a license in respect of Intellectual Property that is material to the business of the Company and its Subsidiaries, taken as a whole (except for (A) licenses of commercially available, off-the-shelf, click-wrap or shrink-wrap Software and (B) licenses granted by the Company or any of its Subsidiaries of payments in the future ordinary course of business);
(xv) any Contract that relates to the formation, creation, operation, management or control of any legal partnership or any joint venture entity pursuant to which the Company has an obligation (contingent or otherwise) to make a material investment in or material extension of credit to any Person (other than any such Contract solely between the Company or any of its wholly-owned Subsidiaries or solely among the Company’s wholly-owned Subsidiaries) or any material Contract involving the sharing of revenues, profits or losses by the Company or any of its Subsidiaries with any unaffiliated third party; and
(xvi) any Contract that involves or relates to Indebtedness for borrowed money or under which the Company or any of its Subsidiaries has issued any note, bond, debenture or other evidence of Indebtedness for borrowed money to, any Person (other than the Company or any of its Subsidiaries) or any other note, bond, debenture or other evidence of Indebtedness for borrowed money of the Company or any of its Subsidiaries (other than in favor of the Company or any of its Subsidiaries) (whether incurred, assumed, guaranteed or secured by any asset), in each case (A) outside the ordinary course of business consistent with past practice, or (B) for a principal amount in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses 5,000,000.
(ib) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a3.12(b) of the Company Disclosure LetterLetter contains a list of all Material Contracts (other than any Material Contract contemplated by clause (i) of the definition thereof) to which the Company or any of its Subsidiaries is a party as of the date of this Agreement. As of the date hereof, is referred to herein as a “Company Material Contract.”
(b) True true and correct in all material respects complete copies of each Company all such Material Contract Contracts have been made available to Parent or (i) publicly filed with the SEC prior or (ii) made available to the date hereof. Parent.
(c) Except as has not had or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither each Material Contract is valid and binding on the Company nor any (and/or each such Subsidiary of its Subsidiaries is (the Company party thereto) and, to the Knowledge of the Company, no each other party is) in default under any Company Material Contractthereto, (ii) each of the Company Material Contracts and is in full force and effect, and is enforceable against the valid, binding and enforceable obligation Company or each such Subsidiary of the Company party thereto, as the case may be, in accordance with its terms, except that such enforceability (A) may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and its Subsidiariesother similar laws affecting or relating to creditors’ rights generally, and to the Knowledge of the Company, of the other parties thereto, (B) is subject to the General Enforceability Exceptionsgeneral principles of equity, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (ivii) neither the Company nor any of its Subsidiaries has received that is a party thereto, nor, to the Knowledge of the Company, any notice of termination with respect toother party thereto, is in breach of, or default under, any such Material Contract, and, to the Knowledge of the Company, no circumstances exist and no event has occurred that with notice or lapse of time or both would or would be reasonably expected to constitute such a breach or default thereunder by the Company or any of its Subsidiaries, or any other party has threatened thereto or are reasonably expected to terminatecontravene, conflict with, or result or give the Company or any of its Subsidiaries 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, and (iii) none of the Company and the Company’s Subsidiaries has received written notice of any actual or alleged violation of, or failure to comply with, any material term or requirement of any Material Contract.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a4.14(a) of the Company Disclosure Letter Schedule sets forth a an accurate and complete list of the following Contracts (organized by the clauses set forth below) that are in effect and correct list to which an Acquired Company is party or by which an Acquired Company is bound as of the Original Agreement Date (each, a “Material Contracts”), which list sets forth, with respect to each Material Contract, the name and date of this Agreement, excluding any the Contract that (x) is or relates to a Company Plan, (y) relates exclusively to and the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectparties thereto:
(i) each Contract (other than this Agreementor group of related Contracts) that is required to be filed by the Company as with a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedTop Customer;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage each Contract (or other evidence group of Indebtedness or agreement providing for Indebtedness in excess of $100,000related Contracts) with a Top Supplier; Company;
(iii) each Contract (other than this Agreement) for the sale with any officer, director of Affiliate of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);Acquired
(iv) settlement agreement or similar each Contract with a Governmental Entity (A) involving future performance respect to the incurrence of any Indebtedness by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time)an Acquired Company, in any such each case, which is material to having an outstanding principal amount in excess of $250,000] individually or $1,000,000 in the Company and its Subsidiaries, taken as a wholeaggregate;
(v) each Contract with respect to any Contract containing covenants binding upon the Company, lease or other agreement (other than capital leases under IFRS) pursuant to which an Acquired Company is a lessor or a lessee of any of its Subsidiaries, personal property or holds or operates any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic areatangible personal property owned by another Person, except for any such Contract that may be canceled without penalty by leases of personal property under which the Company aggregate annual rent or any of its Subsidiaries upon notice of 60 days or lesslease payments do not exceed $250,000;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdictioneach IP Contract;
(vii) any each Contract that would prevent or materially delay the under which an Acquired Company from performing its obligations under this Agreement in has permitted any material respect;Asset to become Encumbered (other than by a Permitted Encumbrance);
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is each Contract which imposes a restriction on (A) the geographies or businesses in which an Acquired Company may operate, (B) the Persons to which an Acquired Company may sell, lease or license its products or services, (C) the Persons from which an Acquired Company may purchase, lease or license products or services or (D) the solicitation or hiring of any service provider by any Acquired Company;
(ix) each Contract (A) providing for an Acquired Company to be the exclusive provider of any product or service to any Person or the exclusive recipient of any product or service of any Person, (B) requiring an Acquired Company to (1) purchase all or substantially all of its requirements of any product or service from any Person or (2) conduct business on an exclusive basis with any Person, (C) containing minimum purchase requirements or (D) containing a Material Customer Agreementprovision of the type commonly referred to as “most favored nation” for the benefit of a Person other than an Acquired Company;
(x) each Contract for or relating to the employment of any director, officer, Company Associate or other Person on a full-time, part-time, consulting or other basis (A) providing annual base compensation in excess of $200,000, or (B) a Material Supplier Agreement;
(ix) any Contract providing severance or other termination payments in the event that contains any exclusivity rights an Acquired Company terminates such Person’s service with or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the engagement by such Acquired Company or its Subsidiaries and purports to bind their respective Affiliates compensation and/or benefits upon or in connection with the consummation of the Contemplated Transactions (including Parent or its Affiliates after the Effective Timea Company Closing Bonus);
(x) any Government Contract;
(xi) each Contract pursuant to which an Acquired Company has, directly or indirectly, made any Related Party Contract;advances, loans or extension of credit to any Company Associate;
(xii) any Company IP Agreements each Contract the performance of which involves consideration in excess of $500,000 (other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into purchase orders in the ordinary course Ordinary Course of business consistent with past practice with customers of the Company or its Subsidiaries; andBusiness);
(xiii) other Contracts (other than this Agreement, purchase orders in each Contract providing for capital expenditures after the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future Closing in excess of $100,000 per annum 250,000 individually or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or 1,000,000 in the aggregate; arrangement;
(xiv) each Contract creating a joint venture, partnership or other similar
(xv) each Contract that is a Company Material Adverse Effectstockholders agreement, investors rights agreement, right of first refusal or co-sale agreement, voting agreement, registration rights agreement, management rights letter and other similar agreements relating to Equity Interests of an Acquired Company;
(ixvi) other than the documents executed in connection with the Pre- Closing Transactions, each Contract for the acquisition of any Person or any business unit or assets thereof or the disposition of any assets (other than acquisitions or dispositions of inventory in the Ordinary Course of Business) of any Acquired Company, in each case, whether by merger, consolidation or business combination or otherwise and involving consideration in excess of $250,000, other than Contracts pursuant to which the applicable acquisition or disposition has been consummated and in respect to which neither the Company nor any Company Subsidiary has any continuing obligations;
(xvii) each Contract entered into in settlement of its Subsidiaries any Action providing for payments by an Acquired Company in excess of $250,000 individually or $1,000,000 in the aggregate, whether in cash or other assets; and
(xviii) each Contract committing an Acquired Company to enter into any of the foregoing.
(b) The Company has made available to Parent accurate and complete copies of each Material Contract, in each case, as amended or otherwise modified and in effect. There are no oral Material Contracts. Each Material Contract is Enforceable against the applicable Acquired Company and, to the Company’s Knowledge, each other party to such Material Contract and, subject to obtaining any necessary consents disclosed on Section 4.4 of the Company Disclosure Schedule, will continue to be so Enforceable following the consummation of the Contemplated Transactions. The Acquired Companies are not and, to the Company’s Knowledge, no other party to any Material Contract is in material breach or violation of, or material default under, or has repudiated any material provision of, any Material Contract. No Acquired Company has, since January 1, 2018, received any written (andor, to the Knowledge of the Company, no other party isoral) in default under any Company notice, claim, dispute notice, show cause notice or cure notice with respect to a Material Contract, (ii) each of the and no Acquired Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date has given any such notice under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Sources: Agreement and Plan of Merger
Material Contracts. (a) Section 3.9(a4.7(a) of the Company Disclosure Letter sets forth a complete and correct list as Schedules lists each of the date of this Agreement, excluding any Contract that following Contracts (x) is by which any of the Purchased Assets are bound or relates to a Company Plan, affected or (y) relates exclusively to which Sellers and/or Aero are a party or by which they are bound in connection with the BBGS Business or the Purchased Assets (zsuch Contracts, together with all Contracts concerning the occupancy, management or operation of any Leased Real Property listed or otherwise disclosed in Section 4.10(b) is filed as an exhibit to any Company SEC Documentof the Disclosure Schedules, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:being "Material Contracts"):
(i) Contract each Contracts involving aggregate consideration in excess of FIFTY THOUSAND DOLLARS (other $50,000.00) and which, in each case, cannot be cancelled without penalty or without more than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed90 days' notice;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage all Contracts that require Sellers and/or Aero to purchase or other evidence sell a stated portion of Indebtedness the requirements or agreement providing for Indebtedness in excess outputs of $100,000the Business or that contain "take or pay" provisions;
(iii) Contract (other than this Agreement) all Contracts that provide for the sale indemnification of any Person or the assumption of its assets after the date hereof (any Tax, environmental or other than sales Liability of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)any Person;
(iv) settlement agreement all Contracts that relate to the acquisition or similar Contract with disposition of any business, a Governmental Entity (A) involving future performance by the Company material amount of stock or assets of any other Person or any real property (whether by merger, sale of its Subsidiaries stock, sale of assets or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Timeotherwise), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) all broker, 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 consultants (or similar arrangements);
(vii) all Contracts relating to indebtedness (including, without limitation, guarantees) except for Contracts relating to trade receivables;
(viii) all Contracts with any Contract containing covenants binding upon the Company, any of its Subsidiaries, Governmental Authority;
(ix) all Contracts that limit or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts purport to limit the ability of the Company or any of its Subsidiaries or such Affiliate Sellers to compete in any business, line of business or with any Person or in any geographic area, except for area or during any such Contract that may be canceled without penalty by the Company or any period of its Subsidiaries upon notice of 60 days or lesstime;
(vix) all joint venture, partnership or similar Contracts;
(xi) all Contracts for the sale of any Contract of the Purchased Assets or for the grant to any Person of any option, right of first refusal or preferential or similar right to purchase any of the Purchased Assets;
(xii) all powers of attorney with respect to a joint venture the Business or partnership formed under the laws of any applicable jurisdictionPurchased Asset;
(viixiii) all collective bargaining agreements or Contracts with any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;Union; and
(viiixiv) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements all other Contracts that are material to the Company and its Subsidiaries taken as a whole, Purchased Assets or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers operation of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company Business and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded previously disclosed pursuant to clause (x) or (y) of the lead-in language in this Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract4.7.”
(b) True and correct in all material respects copies of each Company Material Each Assigned Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or included in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of Purchased Assets is valid and binding on Sellers and/or Aero in accordance with its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts terms and is in full force and effect. None of Sellers and/or Aero or, and to Sellers’ Knowledge, any other party thereto is the valid, binding and enforceable obligation in breach of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, or default under (iii) the Company and its Subsidiaries have performed all obligations required or is alleged to be performed by them in breach of or default under), or has provided or received any written notice of any intention to date under terminate, any Assigned Contract included in the Company Material Contracts and are not (Purchased Assets. No event or circumstance has occurred that, with notice or without the lapse of time or both, would constitute an event of default under any Assigned Contract included in the giving Purchased Assets or result in a termination thereof or would cause or permit the acceleration or other changes of noticeany right or obligation or the loss of any benefit thereunder. To Sellers' Knowledge, or bothno Key Customer has notified Sellers and/or Aero in writing of such Key Customer's dissatisfaction with Sellers' and/or Aero's performance, including with regard to quality control and safety matters. Complete and correct copies of each Assigned Contract included in the Purchased Assets (including all modifications, amendments and supplements thereto and waivers thereunder) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, andhave been made available to Buyer. There are no material disputes pending or, to Sellers’ Knowledge, threatened under any Assigned Contract included in the Knowledge of the Company, no party has threatened to terminate, any Company Material ContractPurchased Assets.
Appears in 1 contract
Sources: Asset Purchase Agreement (Addvantage Technologies Group Inc)
Material Contracts. (a) Section 3.9(a3.7(a) of the Company Disclosure Letter Schedules sets forth a complete and correct list of the following Contracts to which a Group Company is, as of the date of this Agreement, excluding any Contract that a party (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this required to be set forth on Section 3.9(a3.7(a) under which of the Company or any of its Subsidiaries has any current or future rightsDisclosure Schedules, obligations or liabilities or to which collectively, the Company or any of its Subsidiaries or any of their respective properties or assets is subject:“Material Contracts”):
(i) any Contract relating to Indebtedness of any Group Company or to the placing of a Lien (other than this Agreementany Permitted Lien) that is required to be filed by the Company as a on any material contract pursuant to Item 601(b)(10) assets or properties of Regulation S-K of the SEC but is not so filedany Group Company;
(ii) indentureany Contract under which any Group Company is lessee of or holds or operates, credit agreementin each case, loan agreementany tangible property (other than real property), security agreementowned by any other Person, guarantee, note, mortgage or other evidence of Indebtedness except for any lease or agreement providing for Indebtedness in excess of under which the aggregate annual rental payments do not exceed $100,0001,000,000;
(iii) any Contract under which any Group Company is lessor of or permits any third party to hold or operate, in each case, any tangible property (other than this Agreement) real property), owned or controlled by such Group Company, except for any lease or agreement under which the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)aggregate annual rental payments do not exceed $1,000,000;
(iv) settlement agreement any material joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research and development or other similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeContract;
(v) any Contract containing covenants binding upon that (A) limits or purports to limit, in any material respect, the Company, freedom of any of its Subsidiaries, Group Company to engage or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, line of business or with any Person or in any geographic areaarea or that would so limit or purport to limit, except for in any such Contract that may be canceled without penalty by material respect, the Company operations of CHFW or any of its Subsidiaries upon notice Affiliates after the Closing, (B) contains any exclusivity, “most favored nation” or similar provisions, obligations or restrictions or (C) contains any other provisions restricting or purporting to restrict the ability of 60 days any Group Company to sell, manufacture, develop, commercialize, test or lessresearch its Products, directly or indirectly through third parties, in any material respect or that would so limit or purports to limit, in any material respect, CHFW or any of its Affiliates after the Closing;
(vi) any Contract with respect to a joint venture requiring any future capital commitment or partnership formed under capital expenditure (or series of capital expenditures) by any Group Company in an amount in excess of (A) $1,000,000 annually or (B) $2,500,000 over the laws life of any applicable jurisdictionthe agreement;
(vii) any Contract that would prevent or materially delay requiring any Group Company to guarantee the Liabilities of any Person (other than the Company from performing its obligations under this Agreement or a Subsidiary) or pursuant to which any Person (other than the Company or a Subsidiary) has guaranteed the Liabilities of a Group Company, in any material respecteach case in excess of $1,000,000;
(viii) any ContractContract under which any Group Company has, excluding directly or indirectly, made or agreed to make any purchase order or similar documentation that does not contain material terms of the relationship between the partiesloan, that is (A) a Material Customer Agreementadvance, or (B) a Material Supplier Agreementassignment of payment to any Person or made any capital contribution to, or other investment in, any Person;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material required to be disclosed on Section 3.19 of the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)Disclosure Schedules;
(x) any Government ContractContract with any Person (A) pursuant to which any Group Company (or CHFW or any of its Affiliates after the Closing) may be required to pay milestones, royalties or other contingent payments based on any research, testing, development, regulatory filings or approval, sale, distribution, commercial manufacture or other similar occurrences, developments, activities or events or (B) under which any Group Company grants to any Person any right of first refusal, right of first negotiation, option to purchase, option to license or any other similar rights with respect to any Company Product or any Intellectual Property;
(xi) any Related Party ContractContract governing the terms of, or otherwise related to, the employment, engagement or services of any current director, manager, officer, employee, individual independent contractor or other service provider of a Group Company whose annual base salary (or, in the case of an independent contractor, annual base compensation) is in excess of $200,000;
(xii) any Contract for the disposition of any portion of the assets or business of any Group Company IP Agreements or for the acquisition by any Group Company of the assets or business of any other Person (other than (A) Shrink-Wrap Licenses acquisitions or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into dispositions made in the ordinary course of business consistent business), or under which any Group Company has any continuing obligation with past practice respect to an “earn-out”, contingent purchase price or other contingent or deferred payment obligation;
(xiii) any settlement, conciliation or similar Contract (A) the performance of which would be reasonably likely to involve any payments after the date of this Agreement, (B) with customers a Governmental Entity or (C) that imposes or is reasonably likely to impose, at any time in the future, any material, non-monetary obligations on any Group Company (or CHFW or any of its Affiliates after the Closing);
(xiv) any other Contract the performance of which requires either (A) annual payments to or from any Group Company in excess of $1,000,000 or (B) aggregate payments to or from any Group Company in excess of $2,500,000 over the life of the agreement and, in each case, that is not terminable by the applicable Group Company or its Subsidiarieswithout penalty upon less than thirty (30) days’ prior written notice; and
(xiiixv) other all settlement or separation Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent that any Group Company has entered into with past practice, agreements between the Company and any of its wholly owned Subsidiaries employee or between contingent worker at any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 time during the life of the Contract. Each such Contract described in clauses past four (4) years.
(i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Each Material Contract have been made available to Parent or publicly filed with is valid and binding on the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a applicable Group Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge knowledge of the Company, no other party is) in default under any Company Material Contractthe counterparty thereto, (ii) each of the Company Material Contracts and is in full force and effecteffect and (ii) the applicable Group Company and, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and counterparties thereto are not (with or without the lapse of time or the giving of noticein material breach of, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminatedefault under, any Company Material Contract.
Appears in 1 contract
Sources: Business Combination Agreement (Consonance-HFW Acquisition Corp.)
Material Contracts. Schedule 3.24 sets forth a list of all Contracts (written or oral) currently in effect other than Plans, including all amendments, modifications and supplements thereto, to which the Company or any Subsidiary of the Company is a party, or by which the Company or any Subsidiary of the Company is bound, meeting any of the descriptions set forth below:
(a) Section 3.9(a(i) all Contracts or group of related Contracts with the Company Disclosure Letter sets forth a complete and correct list as same party for the purchase of the date of this Agreementproducts or services, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any Subsidiary of its Subsidiaries has any current the Company reasonably may be expected to purchase $100,000 or future rightsmore of products or services during the period ending twelve (12) months after the date hereof, obligations or liabilities or to (ii) all Contracts which cannot be terminated on less than 61 days’ notice, and (iii) all Contracts which cannot be terminated at a cost of less than $250,000 without other penalty;
(b) all Contracts that require the Company or any Subsidiary of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as to purchase its total requirements of any product or service from a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedthird party or that contain “take or pay” provisions;
(iic) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) all Contracts that provide for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance guarantee by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct Subsidiary of the Company of the liabilities of any Person or the assumption of any Tax, environmental or other Liability of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholePerson;
(vd) any Contract containing covenants binding upon the Company, any of its Subsidiaries, all Contracts that limit or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts purport to limit the ability of the Company or any Subsidiary of its Subsidiaries or such Affiliate the Company to compete in any business, line of business or with any Person or in any geographic areaarea or during any period of time;
(e) all employment Contracts (other than at-will offer letters), payments to employees, executives or Persons controlled by executives pursuant to employment agreements or otherwise, contracts with independent contractors and any other Contracts with any Company Employee or any other Person containing severance, noncompetition, change of control payments or proprietary rights provisions (other than offer letters), including any Contracts that require the payment of any amounts or the granting of any rights as a result of entering into this Agreement and/or consummating the transactions contemplated hereby;
(f) all leases for the Leased Real Property;
(g) all Contracts that include or constitute a power of attorney (excluding power of attorney in connection with customs forms entered into in the Ordinary Course of Business);
(h) all capital leases or personal property leases;
(i) excluding Off-the-Shelf Software, all Contracts related to Intellectual Property, including all licenses and agreements pursuant to which the Company or any Subsidiary of the Company uses Intellectual Property or licenses Intellectual Property to third parties;
(j) all Contracts (or group of related Contracts) under which the Company or any Subsidiary of the Company has created, incurred, assumed, or guaranteed any Indebtedness;
(k) all Contracts (or group of Contracts) under which the Company or any Subsidiary of the Company contracts for any material agency, representation, distribution, or brokerage services for the sale of its products;
(l) all Contracts (or group of Contracts) under which the Company or any Subsidiary of the Company contracts for transportation or freight services;
(m) all Contracts (or group of Contracts) under which the Company or any Subsidiary of the Company contracts for the advertisement, display or promotion of any products involving payments of more than $25,000 annually; or
(n) all Contracts (or group° f Contracts) under which the Company or any Subsidiary of the Company provides rebates to any third-parties (excluding coupons).
(o) all Contracts (or group of Contracts) that require capital expenditures in excess of $250,000 in the aggregate on or after the Closing Date;
(p) all Contracts (or group of Contracts) that deal with the provision of goods or services by or on behalf of the Company or any Subsidiary of the Company on a co-manufacturing basis;
(q) all Contracts with any former director, former officer, former employee, former independent contactor, former consultant or former member of the Company or any Subsidiary of the Company for compensation in excess of $25,000 in any twelve (12) month period;
(r) all Contracts (or group of Contracts) concerning a franchising, partnership, joint venture or similar arrangement;
(s) all Contracts containing confidentiality or non-disclosure obligations of the Company or any Subsidiary of the Company pursuant to which the Company or such Subsidiary of the Company has received or expects to receive confidential information of a third party;
(t) all Contracts relating to the purchase or sale of a business for a period of two years prior to the date of this Agreement of the Company or any Subsidiary of the Company or under which indemnification obligations remain outstanding;
(u) all Contracts containing covenants of the Company or any Subsidiary of the Company to indemnify or hold harmless another Person or group of Persons (except for product warranty obligations in Contracts for the sale of goods and other Contracts entered into in the Ordinary Course of Business);
(v) any such Contract pursuant to which the Company or any Subsidiary of the Company is required to purchase goods or services after the Closing Date outside the Ordinary Course of Business;
(w) any other Contract (or group of Contracts) that may be canceled has an aggregate future obligation to any person in excess of $100,000 during the twelve (12) months after the Closing Date and is not terminable, without penalty cost, by the Company or any Subsidiary of its Subsidiaries upon the Company by notice of not-more than 60 days or lessdays;
(vix) all Contracts relating to the merger, consolidation, reorganization or any Contract similar transaction involving or with respect to a joint venture the Company or partnership formed under any Subsidiary of the laws of any applicable jurisdictionCompany;
(viiy) any Contract that would prevent all Contracts relating to the collection, processing, protections, sharing, disclosure or materially delay the Company from performing its obligations under this Agreement in any material respectdisposal of User Data or Personal Data;
(viiiz) all Contracts containing an exclusivity provision between the Company or any Contract, excluding any purchase order or similar documentation that does not contain material terms Subsidiary of the Company, on the one hand, and any Person, on the other hand;
(aa) all Contracts containing consignment or guaranteed sales provisions;
(bb) all hedge, future or forward Contracts;
(cc) all Contracts: (i) granting exclusive rights to license, market, sell or deliver any of the products or services of the Company or any Subsidiary of the Company or of users of any marketplace, computer software, web site, or service of the Company or any Subsidiary of the Company; (ii) otherwise contemplating an exclusive or preferred relationship between the partiesCompany or any Subsidiary of the Company, that is on the one hand, and any other Person, on the other hand, including but not limited to Contracts regarding supplier arrangements, distribution, production or advertising; (Aiii) a Material Customer Agreementcontaining any non-competition, non-solicitation or other similar provisions; or (Biv) a Material Supplier Agreement;
(ix) granting any Contract that contains any exclusivity rights or “most favored nations” provisions nation”, right of first offer or minimum use similar preferential rights to any Person; and
(dd) any other Contract (or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or group of Contracts) that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers Subsidiary of the Company or and not previously disclosed pursuant to this Section 3.24. Each Material Contract is valid and binding in accordance with its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders terms and is in the ordinary course of business consistent with past practice, agreements between the Company full force and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by effect. Neither the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) Subsidiary of the Company Disclosure Letternor, to the Company’s Knowledge, any other party to any Material Contract is referred to herein as a “Company in material breach of, or in default under, any Material Contract.”
(b) True , nor has the Company or any Subsidiary of the Company received any notice of any intention to terminate any Material Contract. 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 acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Complete, correct and correct in all material respects fully executed copies of each Company Material Contract (including all amendments, modifications and supplements thereto and waivers thereunder) have been made available to Parent or publicly filed with the SEC prior delivered to the date hereofBuyer. Except as would not reasonably be expected Neither the Company or any Subsidiary of the Company nor, to havethe Company’s Knowledge, any other party thereto is in breach of any obligation under any purchase order, which breach would, individually or in the aggregate, a be material to the Company Material Adverse Effect, (i) neither or any Subsidiary of the Company. Neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each Subsidiary of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor has affirmatively waived any of its Subsidiaries has received respective material rights under any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Sources: Stock Purchase Agreement (Bespoke Capital Acquisition Corp)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list as As of the date of this Agreement, excluding no Acquired Company is party to or bound by any of the following (a Contract responsive to any of the following categories being hereinafter referred to as a “Material Contract”):
(i) any lease (whether of real or personal property) providing for annual rentals of $500,000 or more;
(ii) any Contract that pursuant to which any Intellectual Property Rights or Technology which are currently being used by any Acquired Company is licensed, sold, assigned or otherwise conveyed or provided to any Acquired Company (xother than Contracts for Standard Software and NDAs);
(iii) other than NDAs and Product Purchase Contracts, any Contract pursuant to which any Intellectual Property Right or Technology is or relates has been licensed (whether or not such license is currently exercisable), sold, assigned or otherwise conveyed or provided to a Company Planthird party by any Acquired Company, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or pursuant to which any Acquired Company has agreed not to enforce any Intellectual Property Right against any third party.
(iv) any Contract imposing any restriction on any Acquired Company’s right or ability, or, after the Company Effective Time, the right or any ability of its Subsidiaries Parent or the Surviving Corporation or any of their respective properties Affiliates (A) to compete in any line of business or assets is subject:
in any area or with any Person or which would so limit the freedom of Parent or the Surviving Corporation or any of their respective Affiliates after the Closing Date (iincluding granting exclusive rights or rights of first refusal to license, market, sell or deliver any of the products or services offered by the Company or any related Technology or Intellectual Property Right), (B) Contract to acquire any product, asset or services from any other Person with whom the Acquired Companies conduct business, to sell any product or other asset to or perform any services for any other Person or to transact business or deal in any other manner with any other Person, in each case, with whom the Acquired Companies conduct business, or (C) develop or distribute any Intellectual Property Rights or Technology (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedContracts for Standard Software or NDAs);
(iiv) indenture, credit any Contract that includes a covenant not to ▇▇▇ or a settlement agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iiivi) any Contract (other than this Agreement) for the sale purchase of materials, supplies, goods, services, equipment or other assets providing for either (A) annual payments by any Acquired Company of its $500,000 or more or (B) aggregate payments by any Acquired Company of $500,000 or more, except, in each case, any Contract that is a purchase order for materials, supplies, goods, services, equipment or other assets after the date hereof (other than sales of inventory, product or obsolete equipment entered into by any Acquired Company in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract for the sale or distribution by any Acquired Company of materials, supplies, goods, services, equipment or other assets providing for either (A) annual payments to any Acquired Company of $500,000 or more or (B) aggregate payments to any Acquired Company of $500,000 or more, except, in each case, any Contract that would prevent is a purchase order for materials, supplies, goods, services, equipment or materially delay other assets entered into by any Acquired Company in the Company from performing its obligations under this Agreement in any material respectordinary course of business consistent with past practice;
(viii) any ContractContract providing for “most favored nation” terms, excluding any purchase order or similar documentation that does not contain material including such terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementfor pricing;
(ix) any Contract that contains relating to marketing and advertising of the Acquired Companies, except, in each case, any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to Contract entered into by any Acquired Company in the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)ordinary course of business consistent with past practice;
(x) any Government Contractpartnership, joint venture or any sharing of revenues, profits, losses, costs or liabilities or any other similar Contract (including any Contract providing for joint research, development, marketing or distribution);
(xi) any Related Party ContractContract relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) entered into after January 1, 2010 or pursuant to which any Acquired Company has any current or future rights or obligations;
(xii) any Company IP Agreements Contract relating to Indebtedness or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed or secured by any asset);
(xiii) any Contract relating to the acquisition, issuance or transfer of any securities (other than Company Options or Company Warrants outstanding as of the date of this Agreement);
(xiv) any Contract relating to any interest rate, currency or commodity derivatives or hedging transaction;
(xv) any Contract under which (A) Shrink-Wrap Licenses any Person has directly or indirectly guaranteed any liabilities or obligations of any Acquired Company, (B) Contracts including nonany Acquired Company has directly or indirectly guaranteed liabilities or obligations of any other Person (in each case other than endorsements for the purposes of collection in the ordinary course of business); or (C) any Acquired Company has assumed any “take-exclusive licenses or-pay” obligations;
(xvi) any Contract relating to the creation of any Lien with respect to any asset of any Acquired Company;
(xvii) any Contract which contains any provisions requiring any Acquired Company to indemnify any other party (excluding indemnities contained in agreements for the purchase, sale or other non-exclusive grants by the Company license of rights in, to products or under Company Intellectual Property entered into services in the ordinary course of business consistent with past practice and do not materially differ in substance from the Company’s standard form agreement(s) with customers of the Company or its Subsidiariesrespect to such indemnification, as provided to Parent);
(xviii) any Contract with any Related Person; and
(xiiixix) other Contracts (other than this Agreementany employment, purchase orders in the ordinary course of business consistent with past practiceseverance, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” retention, bonus or other contingent payment obligations) that would reasonably be expected to result in the receipt agreement with any current or making by the former employee, officer, director, advisor or consultant of any Acquired Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause which any Acquired Company has any current or future rights or obligations.
(xb) or (y) The Company has made available to Parent accurate and complete copies of the lead-in language all written Contracts identified in Section 3.9(a)), whether or not set forth on Section 3.9(a3.09(a) of the Company Disclosure LetterSchedule, is referred to herein as a “including all amendments thereto. Section 3.09(a) of the Company Material Contract.”
(b) True and correct in all material respects copies Disclosure Schedule provides an accurate description of the terms of each Company Contract identified in Section 3.09(a) of the Company Disclosure Schedule that is not in written form.
(c) Each Material Contract have been made available to Parent or publicly filed with is a valid and binding agreement of the SEC prior to the date hereof. Except as would not reasonably be expected to haveAcquired Company party thereto, individually or and is in the aggregatefull force and effect, a and no Acquired Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) thereto is in default under or breach in any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date material respect under the Company Material Contracts and are not (with or without the lapse terms of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect tosuch Contract, and, to the Knowledge of the Company, no party event has threatened occurred, and no circumstance or condition exists, that (with or without notice or lapse of time) will or would reasonably be expected to, (i) result in a violation or breach of any of the provisions of any Material Contract, (ii) give any Person the right to terminatedeclare a default or exercise any remedy under any Material Contract, (iii) give any Company Person the right to accelerate the maturity or performance of any Material Contract, or (iv) give any Person the right to cancel, terminate or modify any Material Contract.
(d) Since January 1, 2011, no Acquired Company has received any written notice or, to the Knowledge of the Company, any other communication regarding any violation or breach of, or default under, any Material Contract.
(e) As of the date of this Agreement, no Person is renegotiating, or has a right (or has asserted a right) pursuant to the terms of any Material Contract to renegotiate, any amount paid or payable to any Acquired Company under any Material Contract or any other material term or provision of any Material Contract.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a3.12(a) of the Company KeyTech Disclosure Letter sets forth a correct and complete and correct list as of the date hereof of this Agreement, excluding any Contract that (x) is or relates the following Contracts to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company KeyTech or any of its Subsidiaries has is party or by which any current of KeyTech or future rightsits assets or properties are bound (collectively, obligations or liabilities or the “Material Contracts”):
(i) any Contract pursuant to which the Company KeyTech or any of its Subsidiaries may be entitled to receive or obligated to pay more than $100,000 in any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedcalendar year;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage any Contract that requires any Person to purchase its total requirements of any product or service from any other evidence of Indebtedness Person or agreement providing for Indebtedness in excess of $100,000contains “take or pay” or similar provisions;
(iii) any Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product that contains a “most-favored-nation” clause or obsolete equipment in the ordinary course of business consistent with past practice)similar term that provides preferential pricing or treatment;
(iv) settlement agreement any Contract that limits or similar Contract with a Governmental Entity purports to limit (Aor that following the Closing could limit) involving future performance by the Company ability of KeyTech or any of its Subsidiaries to (A) compete in any line of business, with any Person, in any geographic area or during any period of their respective Affiliates (time, including Parent and its Affiliates after by limiting the Effective Time) ability to sell any particular services or products to any Persons, or (B) that restricts in solicit any respect the operations customers or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeindividuals for employment;
(v) any Contract containing covenants binding upon the Company, requiring or otherwise relating to any future capital expenditures by KeyTech or any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect relating to a joint venture the creation, incurrence, assumption or partnership formed under the laws guarantee of any applicable jurisdictionIndebtedness;
(vii) any Contract that would prevent provides for the indemnification or materially delay the Company from performing assumption of any Liability of any Person by KeyTech or any of its obligations under this Agreement in any material respectSubsidiaries;
(viii) any ContractContract that relates to the acquisition or disposition of any business, excluding a material amount of stock or assets of any purchase order Person or similar documentation that does not contain material terms any real property (whether by merger, sale of the relationship between the partiesstock, that is (A) a Material Customer Agreement, sale of assets or (B) a Material Supplier Agreementotherwise);
(ix) any Contract that contains provides for the establishment or operation of any exclusivity rights joint venture, partnership, joint development, strategic alliance or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)similar arrangement;
(x) any Government broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting or advertising Contract;
(xi) any Related Party ContractContract to which a Governmental Entity is a party;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses Contract involving any resolution or (B) Contracts including non-exclusive licenses settlement of any actual or threatened Legal Proceeding with a value in excess of $25,000 or that provides for any injunctive or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; andmonetary relief;
(xiii) other Contracts any hedging, swap, derivative or similar Contract;
(other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and xiv) any of its wholly owned Subsidiaries contract relating to real property leased to or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company KeyTech or any of its Subsidiaries of payments and any contract relating to real property reflected as an asset in the future books and financial statements of KeyTech as disclosed to the BSX in accordance with the Listing Regulations;
(xv) any Contract or other document pertaining to the ICOLs and/or other regulatory licenses or Permits;
(xvi) any Contract in respect of the Intellectual Property used or licensed by KeyTech or any of its Subsidiaries, other than generic “shrink wrap” third party licenses with an annual payment not in excess of $100,000 per annum 25,000;
(xvii) any employment contracts and similar arrangements between the KeyTech or any of its Subsidiaries and its directors, officers, employees, independent contractors, advisors or consultants with an annual or one-off value in excess of $500,000 during 100,000, and all contracts, plans and arrangements pursuant to which the life KeyTech or any of its Subsidiaries are obligated to make any payment or confer any benefit upon any of its directors, officers, employees, independent contractors, advisors or consultants as a result of or in connection with any of the Contract. Each such transactions contemplated by this Agreement or any transaction or transactions resulting in a change of control of the KeyTech or any of its Subsidiaries including, without limitation, in respect of the issuance of KeyTech Common Shares, options or warrants on KeyTech Common Shares or any other right to acquire KeyTech Common Shares or other securities of KeyTech;
(xviii) any insurance policies required to be set forth in Section 3.11 of the KeyTech Disclosure Letter;
(xix) any nondisclosure agreement, confidentiality agreement or similar Contract described pertaining to a material business partner of KeyTech or any of its Subsidiaries;
(xx) any Contract between or among KeyTech or any of its Subsidiaries, on the one hand, and KeyTech or any Affiliate of KeyTech (other than any Subsidiary of KeyTech), on the other hand;
(xxi) any Contract that requires a Consent in clauses connection with the transactions contemplated by this Agreement or that contains a provision relating to a change of control;
(ixxii) – any Contract that could or could reasonably be expected to prevent, delay or impair the consummation of the transactions contemplated by this Agreement;
(xiiixxiii) any agreements to resell bulk air time with any Person, including mobile virtual network operators;
(xxiv) agreements which relate to the provision of any interconnection or other material telecommunications services; and
(xxv) any other Contract that is material to the business of KeyTech or any of its Subsidiaries that is not excluded required to be disclosed pursuant to clause (x) or (y) any of the lead-in language in foregoing clauses of this Section 3.9(a3.12(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True KeyTech has made available to ATN correct and correct in all material respects complete copies of each Company Material Contract have been made available (including all modifications, amendments, supplements, annexes and schedules thereto and written waivers thereunder) requested to Parent be reviewed by ATN. To the Knowledge of KeyTech, each Material Contract is in full force and effect and is a valid and binding agreement enforceable against KeyTech or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the CompanyKeyTech, no any other party is) thereto in default under any Company Material Contractaccordance with its terms. None of KeyTech, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, Affiliate thereof and, to the Knowledge of the CompanyKeyTech, no other party to any Material Contract is in breach of or default under, or has threatened provided or received any notice, whether written or oral, of any intention to terminateterminate or seek renegotiation of, any Company Material Contract. To the Knowledge of KeyTech, no event or circumstance has occurred that, with or without notice or lapse of time or both, would (i) constitute a breach of or event of default by, (ii) result in a right of termination for, or (iii) cause or permit the acceleration of or other changes to any right or obligation or the loss of any benefit for, in each case, any party under any Material Contract.
Appears in 1 contract
Sources: Transaction Agreement (Atlantic Tele Network Inc /De)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list Except for this Agreement, as of the date hereof neither the Company nor any Subsidiary of this Agreement, excluding any Contract that (x) the Company is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit party to any Company SEC Documentcontract, of each Contract described arrangement, commitment or understanding currently in this Section 3.9(a) under which the Company effect or any of its Subsidiaries has any current or future rights, obligations or liabilities or to by which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
bound (i) Contract (other than this Agreement) that is required to be filed by the Company a “material contract” (as a material contract pursuant to such term is defined in Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
Exchange Act), (ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence that is a Contract with a customer of Indebtedness or agreement providing for Indebtedness the Company’s laundry facilities management business pursuant to which the Company and its Subsidiaries (A) received revenues in excess of $100,000;
350,000 for the 2012 fiscal year or (B) are expected to receive revenues in excess of $350,000 for the 2013 fiscal year (collectively, the “Material Customer Contracts”), (iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by that obligates the Company or any of its Subsidiaries to make any future capital commitment or capital expenditure in excess of $500,000 (other than laundry equipment purchases in the ordinary course of business), (iv) containing a covenant limiting the ability of the Company, any Subsidiary of the Company or any person that controls, or is under common control with, the Company to compete or engage in any line of business or to compete with any Person in any geographic area, or that prevents the Company or any of their respective Affiliates its Subsidiaries from entering any territory, market or field or freely engaging in business anywhere in the world, (v) with any Third Party containing any “non-solicitation”, “no-hire” or similar provision which restricts the Company or any of its Subsidiaries from soliciting, hiring, engaging, retaining, or employing any Person’s current or former employees in any material respect, (vi) relating to or evidencing Indebtedness or any guarantee of Indebtedness by the Company or any Subsidiary of the Company in excess of $1,000,000, (vii) that is a license to, or otherwise contemplates the development, use, assertion, enforcement, assignment, sale or purchase of, any Company Intellectual Property Assets, including Parent and any licenses granted by or to the Company or any of its Affiliates after the Effective TimeSubsidiaries (other than (A) licenses for unmodified commercially available off-the-shelf software with a total replacement cost and/or license fee of less than $50,000, or (B) arrangements with employees entered into in the ordinary course of business) or that restricts in contemplates the restriction of any respect of the operations foregoing, (viii) to which any of the Company’s or conduct its Subsidiaries’ directors or officers is a party (other than Company Employee Plans, including any award agreements thereunder), (ix) that relates to the formation, creation, governance or control of, or the economic rights or obligations of the Company or any of its Subsidiaries in, any joint venture, limited liability company, partnership or other similar arrangement, (x) that relates to the acquisition or disposition of any business, assets or properties (whether by merger, sale of stock, sale of assets or otherwise) that was entered into after January 1, 2010 and (a) pursuant to which any earn-out or deferred or contingent payment obligations remain outstanding or (b) pursuant to which a claim for indemnification may still be made against the Company or any of their respective Affiliates its Subsidiaries for breaches of general representations and warranties within the general survival period set forth therein (including Parent and its Affiliates after the Effective Time)excluding claims based on willful misconduct, in any such case, which is material intentional misrepresentation or fraud) or (xi) that would reasonably be expected to involve payments by or to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, or any of its SubsidiariesSubsidiaries of $2,000,000 or more per any twelve-month period and is not otherwise covered by the above. Each contract, arrangement, commitment or any understanding of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts type described above in this Section 4.14, whether or not set forth in Section 4.14 of the ability Company Disclosure Schedule is referred to herein as a “Material Contract.” None of the Company or any of its Subsidiaries grant a right of exclusivity, or such Affiliate provides a “most favored nation” benefit, to compete any other Person in any businessMaterial Customer Contract. Since January 1, 2011 the Company has not received any written notice that it or with its Subsidiaries is in default or breach of any Person “non-solicitation”, “no-hire” or in any geographic area, except for any such similar Contract that may be canceled without penalty by provision which restricts the Company or any of its Subsidiaries upon notice of 60 days from soliciting, hiring, engaging, retaining, or less;
(vi) employing any Contract with respect to a joint venture Person’s current or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms former employees. All of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that Contracts are material to the Company valid and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by binding on the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge Subsidiary of the Company, no other party is) in default under any Company Material Contract, (ii) each of as the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect tocase may be, and, to the Knowledge of the Company, each other party thereto, as applicable, and in full force and effect, except as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity. Neither the Company nor any Subsidiary of the Company has, and to the Knowledge of the Company, none of the other parties thereto have, violated in any material respect any provision of, or committed or failed to perform any act, and to the Knowledge of the Company no party event or condition exists, which would constitute a material default under the provisions of any Material Contract, except in each case, those violations and defaults which, individually or in the aggregate, would not reasonably be expected to be material to the Company and its Subsidiaries taken together as a whole and neither the Company nor any Subsidiary of the Company has threatened received written notice of any of the foregoing. To the Knowledge of the Company, no Person is challenging the validity or enforceability of any Material Contract, except in each case for those challenges which, individually or in the aggregate, would not reasonably be expected to terminate, any result in a Company Material ContractAdverse Effect and neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing.
Appears in 1 contract
Sources: Merger Agreement (Mac-Gray Corp)
Material Contracts. (a) The Company has filed as exhibits to, or incorporated by reference in, the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2005, and subsequent Form 10-Qs each “material contract” required to be filed pursuant to Item 601(b)(10)(ii) of Regulation S-K promulgated by the SEC.
(b) Section 3.9(a3.11(b) of the Company Disclosure Letter sets forth contains a complete and correct list accurate list, as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Documenthereof, of each Contract described in this Section 3.9(a) under which all of the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following contracts to which the Company or any of its Subsidiaries is a party or by which any of their respective properties or assets them is subject:
bound (collectively, the “Material Contracts”): (i) Contract (other than this Agreement) that is required to be filed by the Company as a each material contract pursuant relating to Item 601(b)(10) of Regulation Sdistribution, sale, supply, licensing, co-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage promotion or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale manufacturing of any of its assets after the date hereof (other than sales of inventory, product products or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct services of the Company or any of its Subsidiaries Subsidiaries; (ii) each material contract relating to distribution, sale, supply, licensing, co-promotion or manufacturing of any products or services of a Person to the Company or any of their respective Affiliates its Subsidiaries; (including Parent and its Affiliates after iii) material contracts for the Effective Time), in sale of any such case, which is material to of the assets of the Company and its Subsidiaries, taken as a whole;
(v) , other than in the ordinary course of business, or for the grant to any Contract containing covenants binding upon Person of any preferential rights to purchase any assets of the Company, any of Company and its Subsidiaries, or any taken as a whole, other than in the ordinary course of their respective Affiliates business; (including Parent and its Affiliates after iv) contracts the Effective Time) effect of which is that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to may not compete in any business, or way whatsoever with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by otherwise having an adverse effect on the Company or any right of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a wholeto manufacture, sell or that is material distribute any products or services or to purchase or otherwise obtain any components or parts; (v) contracts with any current or, if still in effect, former officer or director of the Company; (vi) indentures, credit agreements, mortgages, promissory notes, and other contracts relating to the Company borrowing of money; and (vii) each “material contract” required to be filed pursuant to Item 601(b)(10)(ii) of Regulation S-K promulgated by the SEC as an exhibit to a registration statement on Form S-1 under the Securities Act or its Subsidiaries and purports to bind their respective Affiliates (including Parent an annual report on Form 10-K under the Exchange Act if such registration statement or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants report was filed by the Company with the SEC on the date of rights inthis Agreement.
(c) Each Material Contract is a legal, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers valid and binding agreement of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each Contract and none of such Material Contracts has been cancelled by the other party thereto. Each Material Contract is enforceable by the Company Material Contracts is and in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and except to the Knowledge of extent that any such contract has expired in accordance with its terms. To the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge knowledge of the Company, no party has threatened repudiated any provision of any Material Contract and no event has occurred which, with the passage of time or the giving of notice or both, would constitute a default, event of default or other breach by the Company or any of its Subsidiaries party thereto which would entitle the other party to terminate, any Company such Material ContractContract to terminate the same or declare a default or event of default thereunder.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a) Except for the Leases set forth on Schedule 4.16 of the Company Sellers’ Disclosure Letter, Schedule 4.12 of the Sellers’ Disclosure Letter sets forth a complete and correct list forth, as of the date hereof, all of this the following Contracts to which the Company or any of its Subsidiaries is a party or by which any of them or their assets or properties are otherwise bound (all Contracts required to be so listed, the “Material Contracts”):
(i) Each Hotel Management Agreement;
(ii) Contracts for the sale of any assets of the Company or any of its Subsidiaries in excess of $250,000 other than in the ordinary course of business;
(iii) Contracts relating to Indebtedness in excess of $50,000;
(iv) Contracts creating or governing a partnership, excluding joint venture, strategic alliance, loyalty program, any Contract that arrangement impacting the distribution of hotel rooms across the Business’s portfolio (xwhether through the use of discounts, promotions or otherwise) is or relates to any other arrangement of a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit similar type to any Company SEC Documentof the foregoing, of in each Contract described in this Section 3.9(acase, with any third party;
(v) Contracts under which the Company or any of its Subsidiaries has has, directly or indirectly, (A) made any current loan, advance, or future rightsassignment of payment to any Person or made any capital contribution to, obligations or liabilities or to which the Company other investment in, any Person or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) capital expenditure, in each case that is required to be filed by the Company remains outstanding as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
date hereof, or (iiB) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets agreed to make after the date hereof (any loan, advance, or assignment of payment to any Person or any capital contribution to, or other than sales of inventoryinvestment in, product any Person or obsolete equipment any capital expenditure, in the ordinary course case of business consistent with past practiceeach of the preceding clauses (A) and (B);
(ivvi) settlement agreement Contracts containing a covenant restricting or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material purporting to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts restrict the ability of the Company or any of its Subsidiaries or such Affiliate to compete engage in any business, or with any Person line of business or in any geographic areaarea or to compete with any Person;
(vii) Contract for the employment or engagement of any officer, except for any such Contract that may be canceled without penalty by employee, manager, consultant or other service provider of the Company or any of its Subsidiaries upon notice of 60 days (each, a “Service Provider”) that: (A) provides for annual base compensation at or less;
above $200,000; (viB) any Contract with respect to a joint venture provides for the payment, increase or partnership formed under the laws acceleration of any applicable jurisdiction;
payment, vesting or other compensation or benefits to any Service Provider upon or in connection with the consummation of the Transactions; or (viiC) restricts the Company’s or any Contract of its Subsidiaries’ ability to terminate the employment or engagement of any Service Provider at any time for any lawful reason or for no reason without penalty or liability (other than liability for accrued but unpaid compensation and benefits through the date of termination), except in the case of clauses (A) and (C), to the extent that would prevent such Services Providers are not employed or materially delay do not provide services primarily at a “home office location” of the Company from performing its obligations under this Agreement in any material respectCompany;
(viii) Each collective bargaining agreement or other contract with any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementlabor union;
(ix) Contracts with any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to vendor set forth on Schedule 4.13 of the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)Sellers’ Disclosure Letter;
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than Contracts that: (A) Shrink-Wrap Licenses involve the commitment or expenditure (Bor series of commitments or expenditures) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in more than $250,000 annually and (B) are not cancelable upon thirty (30) or fewer days’ notice without any liability;
(xi) Contracts other than the future in excess Hotel Management Agreements that provide for the receipt of $100,000 per annum payment by the Company or any of its Subsidiaries of more than $500,000 during annually;
(xii) Contracts requiring the life Company or any of its Subsidiaries to assume or guarantee any debt of any Person (including any Subsidiary) or imposing an Encumbrance (except for any Permitted Encumbrance) on any of the Contract. Each such Contract described in clauses assets or properties of the Company or any of its Subsidiaries;
(xiii) Contracts pursuant to which the Company or any of its Subsidiaries (A) grants any material license to any Person to use any Trademark or other Intellectual Property of the Company or its Subsidiaries or (B) receives any material license from any Person to use any Trademark or other Intellectual Property of a third party, other than software licenses that are available on standard terms to the public generally;
(xiv) Contracts granting any Person a first refusal, first offer or similar preferential right to purchase or acquire any material right, asset, equity interest or property of the Company or any its Subsidiaries;
(xv) Contracts relating to the acquisition or disposition of any business, equity securities, material assets or property of any Person (i) – since the Inception Date or (xiiiii) containing any (A) outstanding “earn-out” or other similar contingent payment or performance obligations or (B) provisions otherwise imposing continuing liability on the Company or any of its Subsidiaries;
(xvi) Contracts imposing indemnification obligations on the Company or any of its Subsidiaries (other than vendor contracts entered into in the ordinary course of business);
(xvii) Contract that is not excluded pursuant a settlement, conciliation, release, compromise, waiver or similar agreement that imposes any obligations upon the Company or any of its Subsidiaries after the date of this Agreement;
(xviii) Each Contract relating to clause an Affiliate Transaction;
(xxix) Contracts with any Governmental Authority; and
(xx) any commitment or (y) agreement to enter into any of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractforegoing.”
(b) True and correct in all material respects copies Each of each Company the Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, Contracts: (i) neither is the legal, valid and binding obligation of the Company nor any or of its Subsidiaries Subsidiaries, as applicable; (ii) assuming such Material Contract is binding on and enforceable against the other parties thereto, is enforceable against the Company or its Subsidiaries, as applicable, in accordance with its terms, subject, as to enforcement, to the Enforceability Exceptions; and (iii) is in full force and effect, except in each case to the extent it has previously expired in accordance with its terms. The Company or its Subsidiaries, as applicable, is not in material breach or default under any Material Contract, and, to the Knowledge of the Company, as of the date hereof, no other party is) in default under to any Company Material Contract, (ii) each of the Company Material Contracts is in full force material breach or default thereunder and effectno event or circumstance has occurred that, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the notice or lapse of time or the giving of notice, times or both) in , would constitute a material breach thereunder and (iv) or default or would permit termination, modification, acceleration thereof by any party to such Material Contract. As of the date hereof, neither the Company nor any of its Subsidiaries has received any notice of any intention of any other party thereto to cancel, terminate or modify any such Material Contract.
(c) Without limiting the generality of Section 4.12(b), neither the Company nor any Subsidiary (i) has received notice in writing of a performance test failure in connection with any Hotel Management Agreement, (ii) is currently in default of any performance test or will be in default of a performance test with upon the giving of notice or passage of time, in each case, in connection with any Hotel Management Agreement or (iii) is in violation of any radius restriction of any Hotel Management Agreement. As of the date hereof, neither the Company nor any Subsidiary has received any notice of termination of a Hotel Management Agreement, or has any Knowledge of a counterparty’s intent to deliver a notice of termination of a Hotel Management Agreement in connection with respect to, and, to the sale of an underlying property or Knowledge of the Companypending or proposed sale of an underlying property subject to a Hotel Management Agreement.
(d) Prior to the date hereof, no party the Company has threatened made available to terminatethe Purchaser true, correct and complete copies of each Material Contract and any Company Material Contractamendments, modifications or supplements thereto.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Hyatt Hotels Corp)
Material Contracts. (a) Section 3.9(a) of the Company Disclosure Letter sets forth a complete and correct list Schedule 4.19 lists as of the date Agreement Date each of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following Contracts to which the Company or any of its Subsidiaries is a party or any of which bind or affect their respective properties or assets is subject:(excluding (x) Licenses, all of which Contracts are disclosed on Schedule 4.15(i)):
(i) any Contract or group of related Contracts for the purchase or lease of services, products, materials, supplies, goods, equipment, or other assets providing for either (other than this AgreementA) that is required to be filed annual payments by the Company as in excess of $5,000, including any and all purchase orders; or (B) give rise to anticipated receipts by the counterparty to the Contract of more than $5,000 in any calendar year, in each case that cannot be terminated on more than ninety (90) days’ notice without payment by the Company of a material contract pursuant to Item 601(b)(10) penalty in excess of Regulation S-K of the SEC but is not so filed$5,000;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage any Contract involving the obligation of the Company to sell products or other evidence of Indebtedness or agreement providing for Indebtedness in excess of services pursuant to which the aggregate payments to become due to the Company exceeds $100,0005,000 annually;
(iii) any Contract relating to the acquisition or disposition of any material business (other than whether by merger, stock sale, asset sale, or otherwise) pursuant to which the Company has material continuing obligations following the date of this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement any Contract relating to any swap, forward, futures, warrant, option or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a wholeother derivative transaction;
(v) any Contract containing covenants binding upon appointing any agent to act on behalf of the Company or any power of attorney;
(vi) any option, license, franchise or similar Contract;
(vii) any employment, severance, retention, change in control or similar Contract with any current or former director, officer or employee with the title of vice-president or higher of the Company in respect of which the Company has or could reasonably be expected to have ongoing payment obligations after the Closing Date;
(viii) any Contract with a Governmental Authority;
(ix) any Contract between the Company, on the one hand, and Seller or any of its SubsidiariesAffiliates, or on the other hand;
(x) any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) Contract containing provisions that materially restricts limit the ability of the Company or any of its Subsidiaries Affiliates (or such Affiliate which, following the consummation of the transactions contemplated hereby, could restrict the ability of Buyer or any of its Affiliates) to compete in any business, business or with any Person or in any geographic area, except or to sell, supply or distribute any of the Company’s services or products (including any non-compete, exclusivity, “most-favored-nation” or similar requirements) or pursuant to which any benefit or right is required to be given or lost, or any penalty or detriment is incurred, as a result of so competing or engaging; Pharma15 Corporation 17
(xi) any Contract that provides for or governs the formation, creation, operation, management or control of any strategic partnership, joint venture, joint development, or similar arrangement or partnership; and
(xii) any Contract that relates to Indebtedness having an outstanding principal amount in excess of $1,000 or conditional sale arrangements, the sale, securitization or servicing of loans or loan portfolios, in each case, in connection with which the aggregate actual contingent obligations of the Company and its Subsidiaries under such Contract is greater than $1,000.
(b) The Company previously has made available to Buyer and Parent true, correct, and complete copies of all Contracts disclosed or required to be disclosed on Schedule 4.19 (each, a “Material Contract”); in the case of any oral Material Contract, Schedule 4.19 sets forth a full and accurate written summary of the material terms of such Contract. Each Material Contract is valid and binding on the Company or the Subsidiary of the Company that may is a party thereto and is in full force and effect and enforceable in accordance with its terms, subject to the Enforcement Limitations, and unless expired or terminated in accordance with its terms. The Company, its Subsidiaries and, to the Knowledge of Sellers and the Company, each other party to each Material Contract, have performed and complied with all obligations required to be canceled without penalty performed or complied with by them under each Material Contract. There is no default under any Material Contract by the Company or any of its Subsidiaries upon or by any other party, and no event has occurred that with the lapse of time or the giving of either written or oral notice of 60 days or less;
(vi) any Contract with respect to both would constitute a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making default thereunder by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant by any other party to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company each Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Sources: Stock Purchase Agreement (Radiopharm Theranostics LTD)
Material Contracts. (a) Section 3.9(aSchedule 4.12(a) of the Company Disclosure Letter Schedules sets forth a true, correct and complete list of, and the Company has made available to SPAC true, correct list and complete copies of, each Contract to which any Target Company is a party or by which any Target Company, or any of its properties or assets are bound (each Contract required to be set forth on Schedule 4.12(a) of the Company Disclosure Schedules, a “Company Material Contract”) that:
(i) contains covenants that limit in any material respect the ability of any Target Company (A) to compete in any line of business or with any Person or in any geographic area or to sell, or provide any service or product or solicit any Person, including any non-competition covenants, employee and customer non-solicit covenants, exclusivity restrictions, rights of first refusal or most-favored pricing clauses or (B) to purchase or acquire an interest in any other Person;
(ii) relates to the formation, creation, operation, management or control of any joint venture, profit-sharing, partnership, non-wholly-owned limited liability company or other similar agreement or arrangement, or involving the sharing of profits or losses;
(iii) evidences Indebtedness (whether incurred, assumed, guaranteed or secured by any asset) of any Target Company having an outstanding principal amount in excess of $1,000,000 (other than those incurred in the Ordinary Course of Business);
(iv) involves the lease, license, sale, use acquisition or disposition, directly or indirectly (by merger or otherwise), of a business or assets with an aggregate value in excess of $1,000,000 (other than in the Ordinary Course of Business) or shares or other equity interests of any Target Company or another Person;
(v) relates to any merger, consolidation or other business combination with any other Person or the acquisition or disposition of any other entity or its business or material assets with a value above $1,000,000 or the sale of any Target Company or its business or material assets with a value above $1,000,000;
(vi) by its terms, individually or with all related Contracts, requires aggregate payments or receipts by the Target Companies under such Contract or Contracts of at least $1,000,000 per year or $1,000,000 in the aggregate;
(vii) obligates the Target Companies to (A) provide a guarantee of obligations of a third party after the date of this Agreement in excess of $1,000,000 or (B) indemnification arrangements and other hold harmless arrangements made or provided by any Target Company to a third party, in each case, other than those incurred in the Ordinary Course of Business;
(viii) obligates the Target Companies to make any capital commitment or expenditure in excess of $5,000,000 (including pursuant to any joint venture);
(ix) relates to the waiver, compromise, conciliation, settlement or similar resolution of any Action under which any Target Company has material outstanding obligations (other than customary confidentiality or non-disparagement obligations);
(x) is an employment or engagement Contract with any officer, director, employee, consultant or individual independent contractor of any Target Company under which any Target Company (A) has continuing obligations for payment of annual base compensation of at least $200,000, or (B) has severance or post-termination obligations in excess of $200,000 as measured as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract Agreement (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation Sat-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment will employment arrangements with employees entered into in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (, including Parent all non-competition, severance and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contractindemnification agreements;
(xi) any Related Party Contractrelates to the voting or control of the equity interests of the Target Companies or the election of directors of the Target Company (other than the Organizational Documents of the Target Companies);
(xii) relates to benefits, compensation or payments (or the vesting thereof) with respect to a director, officer, employee or independent contractor of any Target Company IP Agreements other than (A) Shrink-Wrap Licenses that will be increased or (B) Contracts including non-exclusive licenses or other non-exclusive grants accelerated by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers consummation of the Company transactions contemplated hereby or its Subsidiaries; andthe amount or value thereof will be calculated on the basis of any of the transactions contemplated by this Agreement;
(xiii) is between any Target Company, on one hand, and any Related Person, on the other Contracts hand;
(xiv) that will be required to be filed with the Registration Statement under applicable SEC requirements or would otherwise be required to be filed by the Company as an exhibit for a Form S-1 pursuant to Items 601(b)(1), (2), (4), (9) or (10) of Regulation S-K under the Securities Act as if the Company was the registrant;
(xv) involves any 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;
(xvi) is with any Top Customer or Top Supplier;
(xvii) provides another Person (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the another Target Company or any manager, director or officer of its Subsidiaries any Target Company) with a power of attorney;
(xviii) relates to the development, ownership, licensing or use of any Intellectual Property by, to or from any Target Company, other than “shrink wrap,” “click wrap,” and “off the shelf” software agreements and other agreements for Software commercially available on reasonable terms to the public generally with license, maintenance, support and other fees of less than $500,000 per year;
(xix) relates to a material settlement entered into within three (3) years prior to the date of this Agreement or under which any Target Company has outstanding obligations (other than customary confidentiality obligations); or
(xx) is between any Target Company, on the one hand, any Governmental Authority, on the other hand, with payments to or from the Target Companies in the future in excess aggregate of at least $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract1,000,000.”
(b) True and correct in all material respects copies of With respect to each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, Contract: (i) neither such Company Material Contract was entered into at arms’ length and in the Ordinary Course of Business; (ii) such Company nor any of its Subsidiaries Material Contract is (legal, valid and binding and enforceable in all respects against the Target Company party thereto and, to the Knowledge of the Company, each other party thereto, and is in full force and effect (except, in each case, as such enforcement may be limited by the Enforceability Exceptions); (iii) the consummation of the transactions contemplated by this Agreement will not affect the validity or enforceability of any Company Material Contract; (iv) no Target Company is in material breach or default, and to the Knowledge of the Company, no event has occurred that with the passage of time or giving of notice or both would constitute a material breach or default by any Target Company, or permit termination or acceleration by the other party thereto, under such Company Material Contract; (v) to the Knowledge of the Company, no other party is) to such Company Material Contract is in material breach or default, and no event has occurred that with the passage of time or giving of notice or both would constitute such a material breach or default by such other party, or permit termination or acceleration by any Target Company, under any such Company Material Contract, ; (iivi) each of the no Target Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, andwritten or, to the Knowledge of the Company, oral notice of an intention by any party to any such Company Material Contract that provides for a continuing obligation by any party thereto to terminate such Company Material Contract or amend the terms thereof, other than modifications in the ordinary course of business that do not adversely affect any Target Company in any material respect; and (vii) no party Target Company has threatened to terminate, waived any material rights under any such Company Material Contract.
Appears in 1 contract
Sources: Business Combination Agreement (Global SPAC Partners Co,)
Material Contracts. (a) Section 3.9(a3.10(a) of the Company Sellers Disclosure Letter Schedules sets forth a correct and complete and correct list as of the date hereof of this Agreement, excluding the following Assigned Contracts and Acquired Company Contracts to which any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company Seller or any of its Subsidiaries has Affiliates, including, but not limited to, any current Acquired Company, is party or future rightsis bound in connection with the Business, obligations in each case, other than any Contracts solely related to Real Property Leases or liabilities in connection with the Restructuring (collectively, the “Material Contracts”):
(i) (A) any such Contract (other than a Contract under clause (B) or (C) below) pursuant to which the Company any Seller or any of its Subsidiaries Affiliates, including any Acquired Company, may be entitled to receive or obligated to pay more than $250,000 in any calendar year that cannot be cancelled by such Seller or such Affiliate without material penalty upon no more than ninety (90) days’ notice, (B) any such Contract with a Material Customer, and (C) any such Contract with a Material Supplier; in each case, that are not sales orders or purchase orders issued in the ordinary course of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filedbusiness;
(ii) indentureany such Contract pursuant to which any Seller or any of its Affiliates, credit agreementincluding any Acquired Company, loan agreement, security agreement, guarantee, note, mortgage is required to purchase its total requirements of any product or service from any other evidence of Indebtedness Person or agreement providing for Indebtedness in excess of $100,000contains “take or pay” or similar provisions;
(iii) any such Contract (other than this Agreement) for that limits or purports to limit in any material manner the sale ability of any Seller or any of its assets after the date hereof Affiliates to (other than sales of inventory, product or obsolete equipment A) compete in the ordinary course any line of business consistent with past practice)or any geographic area or (B) use or exploit the Transferred Intellectual Property;
(iv) settlement agreement any such Contract requiring or similar Contract with a Governmental Entity (A) involving otherwise relating to any future performance capital expenditures by the Company any Seller or any of its Subsidiaries or any Affiliates in excess of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole$200,000;
(v) any Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by relating to the Company creation, incurrence, assumption or guarantee of any of its Subsidiaries upon notice of 60 days or lessIndebtedness for borrowed money;
(vi) any such Contract pursuant to which any Seller or any of its Affiliates, including any Acquired Company, receives or grants from or to any third party a license of, under or to any Transferred Intellectual Property, any Intellectual Property Rights used in connection with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer AgreementBusiness, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements other Intellectual Property Rights that are otherwise material to the Company and its Subsidiaries taken as a wholeBusiness, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements other than (A) Shrinknon-Wrap Licenses exclusive licenses of or grants of rights to Intellectual Property Rights ancillary to commercial agreements (including with respect to manufacturing, customer, supply, distribution, retail, packaging and marketing agreements) or (B) Contracts including nonlicenses of commercially available or off-exclusive licenses the-shelf Software, software-as-a-service agreements or other non-exclusive grants by the Company of rights inrelated services agreements, to or under Company Intellectual Property in each case, entered into in the ordinary course of business consistent with past practice with customers of and which are not material to the Company Business;
(vii) any such Contract that relates to the disposition (A) by a Seller (or its Subsidiaries; and
Affiliate) of any Additional Acquired Asset or (xiiiB) other Contracts (by any Acquired Company of any material asset of such Acquired Company, in each case, other than this Agreement, purchase orders dispositions in the ordinary course of business consistent business;
(viii) any such Contract related to Hazardous Substances’ storage, removal, transportation or disposal with past practicerespect to (A) the Business or any Additional Acquired Asset, agreements between (B) the Company and real property subject of any of its wholly owned Subsidiaries Real Property Lease, or between (C) the Transferred Facility;
(ix) any of the Companysuch manufacturer’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected representative Contract to result in the receipt or making by the Company which any Seller or any of its Subsidiaries Affiliates, including any Acquired Company, is a party that cannot be cancelled by such Seller or such Affiliate without material penalty upon no more than ninety (90) days’ notice;
(x) any such Contract with any customers, distributors, or suppliers which create an exclusive relationship with respect to any geographic area or during any period of payments time that cannot be cancelled by such Seller or such Affiliate without material penalty upon no more than ninety (90) days’ notice;
(xi) any such employment agreement or Contract with an independent contractor or consultant, in the future each case, who is an individual person, with annual base salary plus annual bonus or annual aggregate cash consideration in excess of $100,000 per annum or $500,000 during the life of the Contract. Each 150,000;
(xii) any such Contract described with a Governmental Body that is not a sales order or purchase order issued in clauses (i) – the ordinary course of business;
(xiii) any such collective bargaining agreement or Contract with any labor organization, union, or association;
(that is xiv) any such Contract granting a power of attorney to act on an Acquired Company’s behalf; and
(xv) any Contract not excluded pursuant to clause otherwise listed above involving annual payments in excess of $1,500,000.
(xb) or (y) of the lead-in language in Section 3.9(a)), whether or not Except as set forth on Section 3.9(a3.10(b)(i) of the Company Sellers Disclosure LetterSchedules, is referred Sellers have made available to herein as a “Company Buyer, to the extent permissible thereunder and under applicable Law, copies of each Material Contract.”
(b) True Contract that are correct and correct complete in all material respects copies of each Company respects. Each Material Contract have been made available is in full force and effect and is a valid and binding agreement of the applicable Seller or one of their respective applicable Affiliates (including an Acquired Company) enforceable against such Seller or such Affiliate in accordance with its terms, except as such enforceability may be limited by the Enforceability Limitations. Except as set forth on Section 3.10(b)(ii) of the Sellers Disclosure Schedules, none of the Sellers, any of their respective applicable Affiliates nor, to Parent Sellers’ Knowledge, any other party to any Material Contract is in material breach of or publicly filed with material default under, or has, during the SEC six (6) months prior to the date hereof. Except as would not reasonably be expected to have, individually provided or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any written notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened any intention to terminate, any Company Material Contract.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a4.07(a) of the Company Disclosure Letter sets Schedules lists each of the following Contracts (other than purchase orders (including commitments effected through e-mail)) (x) by which any of the Purchased Assets are bound or affected or (y) to which either Seller is a party or by which it is bound (such Contracts, together with all Contracts relating to Intellectual Property Rights set forth a complete and correct list in Section 4.11(b) of the Disclosure Schedules, being “Material Contracts”), as of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subjectInitial Disclosure Date:
(i) Contract (other than this Agreement) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10) all Contracts involving any capital expenditures or series of Regulation S-K related capital expenditures in excess of the SEC but is not so filed$50,000;
(ii) indentureall contracts that provide for the indemnification of any Person or the assumption of any Tax, credit agreement, loan agreement, security agreement, guarantee, note, mortgage environmental or other evidence Liability of Indebtedness or agreement providing for Indebtedness in excess of $100,000any Person;
(iii) Contract all Contracts that relate to the acquisition or disposition of any business, a material amount of equity or assets of any other Person (other than this Agreement) for the whether by merger, sale of stock, sale of assets or otherwise) pursuant to which either Seller has any of its assets after the date hereof continuing obligations, or any continuing indemnification, “earn-out” or other liabilities (other than sales of inventoryfixed, product contingent or obsolete equipment in the ordinary course of business consistent with past practiceotherwise);
(iv) settlement agreement all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting, and public relations and advertising Contracts that provide for payment or similar Contract receipt by either Seller in connection with a Governmental Entity (A) involving future performance by the Company or any Business in excess of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole$25,000 on an annual basis;
(v) all Contracts with managers, officers, employees, independent contractors or consultants;
(vi) all Contracts relating to indebtedness or the granting of security for indebtedness, and all guaranties;
(vii) all Contracts with any Contract containing covenants binding upon Governmental Authority;
(viii) all Contracts that limit or purport to limit the Company, any ability of its Subsidiarieseither Seller, or any transferee of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability substantially all of the Company or any of its Subsidiaries or such Affiliate either Seller’s assets, to compete or engage in any business, line of business or with any Person or in any geographic area, except for area or during any such Contract that may be canceled without penalty by the Company or any period of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreementtime;
(ix) any Contract that contains any exclusivity rights all joint venture, partnership or “most favored nations” provisions or minimum use or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)similar Contracts;
(x) all Contracts for the sale of assets (excluding Inventory but including any Government Contractmaster sale agreements related to the sale of Inventory) of either Seller involving the receipt by either Seller of more than $25,000 or for the grant to any Person of any option, right of first refusal or preferential or similar right to purchase any assets (including Inventory) of either Seller;
(xi) any Related Party Contractall powers of attorney;
(xii) all collective bargaining agreements or Contracts with any Company IP Agreements other than Union;
(Axiii) Shrink-Wrap Licenses all Contracts for the purchase or lease of real estate;
(Bxiv) all Contracts including non-exclusive licenses for the acquisition of services, supplies, equipment, inventory, or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into personal property involving more than $25,000 in the ordinary course aggregate per annum;
(xv) all Contracts with Member, or any Affiliate of business consistent either Seller or Member;
(xvi) all Contracts with past practice with customers respect to the return of Inventory in the Company possession of Customers by reason of alleged overshipment, defective merchandise or its Subsidiariesotherwise; and
(xiiixvii) other any Contract or series of related Contracts (other that involve payments of more than this Agreement, purchase orders $25,000 in the ordinary course aggregate per annum;
(xviii) all Contracts that relate to the settlement of business consistent with past practice, agreements between any Action within the Company and any of its wholly owned Subsidiaries or between any of three (3) years prior to the Company’s wholly owned SubsidiariesInitial Disclosure Date; and
(xix) all Contracts that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in terminate more than one year from the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contractdate hereof.”
(b) True and correct in all material respects copies of each Company Each Material Contract have been made available to Parent or publicly filed is valid and binding on the applicable Seller in accordance with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts terms and is in full force and effect, and is the valid, binding and enforceable obligation . Except as set forth in Section 4.07(b) of the Company and its SubsidiariesDisclosure Schedules, and neither Sellers nor, to the Knowledge Sellers’ Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received any written notice of any intention to terminate, any Material Contract. Except as set forth in Section 4.07(b) of the CompanyDisclosure Schedules, of the other parties theretoto Sellers’ Knowledge, subject to the General Enforceability Exceptionsno event or circumstance has occurred that, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with notice or without the lapse of time or both, would constitute a material default under any Material Contract or result in a termination thereof or would cause or permit the giving acceleration or other changes of noticeany material right or obligation or the loss of any material benefit thereunder. Complete and correct copies of each Material Contract (including all modifications, and supplements thereto and waivers thereunder) have been made available to Buyer by Sellers. Except as set forth in Section 4.07(b) of the Disclosure Schedules, there are no material disputes pending, or both) in breach thereunder and (iv) neither the Company nor to Sellers’ Knowledge, threatened, under any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Sources: Asset Purchase Agreement (Twinlab Consolidated Holdings, Inc.)
Material Contracts. (a) Section 3.9(aSchedules 2.17(a)(i) through (xxi) of the Company Disclosure Letter sets set forth a complete and correct list as of each of the date of this Agreement, excluding any Contract that (x) is or relates to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or following Contracts to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:a party that are in effect and active on the Agreement Date (collectively, the “Material Contracts”):
(i) each Contract with a (other than this AgreementA) that is required to be filed by the Company as a material contract pursuant to Item 601(b)(10Significant Customer or (B) of Regulation S-K of the SEC but is not so filedSignificant Supplier;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement each Contract providing for Indebtedness payments by or to the Company (or under which the Company has made or received such payments) in excess an aggregate amount of $100,00050,000 or more;
(iii) each dealer, distributor, referral or similar agreement, or any Contract (other than this Agreement) providing for the sale grant of rights to reproduce, license, distribute, market, refer or sell the Company Products to any other Person or relating to the advertising or promotion of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice)Business;
(iv) settlement agreement or similar Contract with a Governmental Entity each (A) involving future performance joint venture Contract, (B) Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons and (C) Contract that involves the payment by the Company of royalties to any other Person;
(v) each agreement or Contract providing for the payment of compensation or benefits (including any accelerated vesting) upon any termination of employment or service, or in connection with the Transactions, with any current or former employees under which the Company has any actual or potential Liability;
(vi) each Contract for or relating to the employment or service of any director, officer, employee, consultant or beneficial owner of more than 1% of the total shares of Company Common Stock or any other type of its Subsidiaries or Contract with any of their respective Affiliates the Company’s officers, employees, consultants or beneficial owners of more than 1% of the total shares of Company Common Stock, as the case may be;
(including Parent and its Affiliates after vii) each Contract (A) pursuant to which any other party is granted exclusive rights or “most favored party” rights of any type or scope with respect to any of the Effective Time) Company Products, Company Intellectual Property or Company-Owned Data or which would otherwise restrict the Company from freely setting prices for the Company Products, (B) containing any non-competition covenants or other restrictions relating to the Company Products, Company Intellectual Property or Company-Owned Data, (C) that restricts in any respect limits or would limit the operations or conduct freedom of the Company or any of its Subsidiaries their successors or any of assigns or their respective Affiliates to (including Parent and its Affiliates after the Effective Time)I) engage or participate, or compete with any other Person, in any such caseline of business, which is material market or geographic area with respect to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon Products or the Company, any of its SubsidiariesCompany Intellectual Property, or to make use of any Company Intellectual Property, including any grants by the Company of their respective Affiliates exclusive rights or licenses (including Parent and its Affiliates after II) sell, distribute or manufacture any products or services or to purchase or otherwise obtain any software, components, parts or services or (III) solicit the Effective Timeservices or business of any Person, (D) containing any “take or pay,” minimum commitments or similar provisions or (E) that materially restricts the ability is set forth on Schedule 2.13(j) of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respectDisclosure Letter;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is each Company Intellectual Property Agreement (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements that are material to where the Company and its Subsidiaries taken as a wholegrants any license, covenant not to sue or that is material other rights under any Intellectual Property Rights to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements Person, other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its Subsidiaries; and
(xiii) other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of on the Company’s wholly owned Subsidiaries) that contain obligations standard form of customer contract (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any a copy of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract.”
(b) True and correct in all material respects copies of each Company Material Contract have which has been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, Acquirer); (iB) neither where the Company nor obtains or receives any of its Subsidiaries is (andlicense, covenant not to the Knowledge of the Company, no sue or other party is) in default rights under any Company Material ContractIntellectual Property Rights from any Person (provided that for the purposes of this Section 2.17(a)(iii)(B), (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations not required to be performed by them to date under the Company Material Contracts and are not disclose: (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.1)
Appears in 1 contract
Material Contracts. (a) For purposes of this Agreement, each of the following Acquired Company Contracts, and only the following Acquired Company Contracts, shall be deemed to constitute a "MATERIAL CONTRACT":
(i) any Acquired Company Contract that is required by the rules and regulations of the SEC to be described in the Company SEC Documents or to be filed as an exhibit thereto;
(ii) any Acquired Company Contract relating to the employment of any employee, and any Acquired Company Contract pursuant to which any of the Acquired Companies is or may become obligated to make any severance, termination, bonus or relocation payment or any other payment (other than payments in respect of salary) in excess of $25,000, to any current or former employee, officer or director or any Acquired Company Contract which provides for the acceleration of vesting of any options or acceleration of other rights to acquire shares of Company Common Stock;
(iii) any Acquired Company Contract relating to the acquisition, transfer, development, sharing or license of any Acquired Company Proprietary Asset;
(iv) any Acquired Company Contract which provides for indemnification of any officer, director, employee or agent of any of the Acquired Companies or any other Person;
(v) any Acquired Company Contract imposing any restriction on the right or ability of any Acquired Company to (A) compete with any other Person, (B) solicit the employment of, or employ, any Person, (C) acquire any material product or other material asset or any services from any other Person, sell any material product or other material asset to or perform any services for any other Person or transact business or deal in any other manner with any other Person, (D) develop or distribute any material technology, (E) make, have made, use or sell any current products or products under development, or (F) acquire any capital stock or other security of any Person;
(vi) any Acquired Company Contract that contemplates or involves payment or delivery of cash or other consideration or the performance of services in an amount or having a value in excess of $50,000 in the aggregate;
(vii) any other Acquired Company Contract, if a breach by the Company or any other party thereto of such Contract would reasonably be expected to have a Company Material Adverse Effect;
(viii) any Acquired Company Contract requiring that any of the Acquired Companies give any notice or provide any information to any Person prior to considering or accepting any Acquisition Proposal or similar proposal, or prior to entering into any discussions, agreement, arrangement or understanding relating to any Acquisition Transaction or similar transaction;
(ix) any Acquired Company Contract under which any Acquired Company uses or occupies or has the right to use or occupy any real property (collectively, the "REAL PROPERTY LEASES", and the land, buildings and other improvements covered by the Real Property Leases being herein called the "LEASED REAL PROPERTY"), it being agreed that any Acquired Company Contract (collectively, the "ASSIGNED Leases") that would otherwise have constituted a Real Property Lease but for the assignment of such Acquired Company Contract to a third party prior to the date of this Agreement and is identified as an Assigned Lease in Section 3.9(a2.8(a)(ix) of the Company Disclosure Letter sets forth a complete and correct list as of the date of this Agreement, excluding any Contract that shall not constitute an Acquired Company Contract;
(x) is any Acquired Company Contract relating to any Indebtedness, guarantying the performance of any Person or relates guarantying any Indebtedness;
(xi) any Acquired Company Contract containing any covenant limiting in any respect the right of any Acquired Company (A) to a Company Planengage in any line of business or to engage in business in any geographic area, (yB) relates exclusively to the BBGS Business develop, market or distribute any products or services, or (zC) is filed as an exhibit to compete with any Person or granting any exclusive distribution rights;
(xii) any Acquired Company SEC Document, of each Contract described in this Section 3.9(a) under which that contains any so-called "most favored nation" provision or similar provisions requiring the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:
(i) Contract (other than this Agreement) that is required offer to be filed by the Company as a material contract pursuant to Item 601(b)(10) of Regulation S-K of the SEC but is not so filed;
(ii) indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Indebtedness or agreement providing for Indebtedness in excess of $100,000;
(iii) Contract (other than this Agreement) for the sale of any of its assets after the date hereof (other than sales of inventory, product or obsolete equipment in the ordinary course of business consistent with past practice);
(iv) settlement agreement or similar Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect the operations or conduct of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), in any such case, which is material to the Company and its Subsidiaries, taken as a whole;
(v) any Contract containing covenants binding upon the CompanyPerson, any of its Subsidiaries, terms or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person or in any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or less;
(vi) any Contract with respect to a joint venture or partnership formed under the laws of any applicable jurisdiction;
(vii) any Contract that would prevent or materially delay the Company from performing its obligations under this Agreement in any material respect;
(viii) any Contract, excluding any purchase order or similar documentation that does not contain material terms of the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier Agreement;
(ix) any Contract that contains any exclusivity rights or “most favored nations” provisions or minimum use or supply requirements conditions that are material at least as favorable as those offered to the Company and its Subsidiaries taken as a whole, one or that is material to the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time);
(x) any Government Contract;
(xi) any Related Party Contract;
(xii) any Company IP Agreements more other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses or other non-exclusive grants by the Company of rights in, to or under Company Intellectual Property entered into in the ordinary course of business consistent with past practice with customers of the Company or its SubsidiariesPersons; and
(xiii) any Acquired Company Contract that restricts the ability of any Acquired Company to assert any material claims or initiate any material Legal Proceedings against any other Contracts (other than this Agreement, purchase orders in the ordinary course of business consistent with past practice, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material ContractPerson.”
(b) True and correct in all material respects copies of each Company Material Contract have been made available to Parent or publicly filed with the SEC prior to the date hereof. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is (and, to the Knowledge of the Company, no other party is) in default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effect, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (with or without the lapse of time or the giving of notice, or both) in breach thereunder and (iv) neither the Company nor any of its Subsidiaries has received any notice of termination with respect to, and, to the Knowledge of the Company, no party has threatened to terminate, any Company Material Contract.
Appears in 1 contract
Material Contracts. (a) Section 3.9(a) Schedule 3.13 contains an accurate and complete list of the Company Disclosure Letter sets forth a complete and correct list as of the date of this Agreement, excluding any Contract that (x) is or relates following Contracts to a Company Plan, (y) relates exclusively to the BBGS Business or (z) is filed as an exhibit to any Company SEC Document, of each Contract described in this Section 3.9(a) under which the Company or any of its Subsidiaries has any current or future rights, obligations or liabilities is a party or to which the Company or any of its Subsidiaries or any of their respective properties or assets is subject:subject (the "Material Contracts"):
(i) any Contract if (other than this AgreementA) that is required the performance remaining thereunder involves aggregate consideration payable to be filed or by the Company as a material contract pursuant to Item 601(b)(10in excess of $10,000 and (B) of Regulation S-K of the SEC but such Contract is not so filed;cancelable, without penalty, by the Company on notice of thirty (30) days or less; Membership Interest Purchase Agreement 25
(ii) indentureany Contract obligating the Company to provide services to (1) any multiple dwelling unit or gated community, credit agreement, loan agreement, security agreement, guarantee, note, mortgage in each case involving more than fifty (50) units or other evidence of Indebtedness or agreement providing for Indebtedness (2) any Person if the performance remaining thereunder involves annual consideration to the Company in excess of $100,00020,000;
(iii) any Contract granting the Company a "right of entry" (other than this Agreement) including, for each such Contract, the sale counter party thereto, the expiration of any the term thereof, the number of its assets after the date hereof (other than sales of inventory, product or obsolete equipment units in the ordinary course multi-family residential property, the number of business consistent with past practice)DTV Subscribers, HSD Subscribers and AV Subscribers as of November 20, 2006, the number of internet subscribers as of November 20, 2006 and the services that the Company has a right to provide on either an exclusive or non-exclusive basis;
(iv) settlement agreement or similar any Contract with a Governmental Entity (A) involving future performance by the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) or (B) that restricts in any respect or contains limitations on the operations or conduct ability of the Company or any of its Subsidiaries or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time), from freely engaging in any such case, which is material line of business or with any Person in any geographical area or covenants of any other Person not to compete with the Company and its Subsidiaries, taken as a wholein any line of business or in any geographic area or not to solicit or hire any Person with respect to employment;
(v) any collective bargaining Contract containing covenants binding upon the Company, any of its Subsidiaries, or any of their respective Affiliates (including Parent and its Affiliates after the Effective Time) that materially restricts the ability of the Company or any of its Subsidiaries or such Affiliate to compete in any business, or with any Person labor union or in association representing any geographic area, except for any such Contract that may be canceled without penalty by the Company or any of its Subsidiaries upon notice of 60 days or lessEmployee;
(vi) any Contract with respect to a joint venture the Seller or partnership formed under any of its Affiliates, including any Contract constituting or reflecting any Indebtedness, guaranty, receivable, payable or other account maintained between the laws Company and the Seller and any of any applicable jurisdictionits Affiliates;
(vii) any Contract that would prevent for the employment of any Company Employee or materially delay other Person on a full-time, part-time or consulting basis or other basis providing annual compensation in excess of $25,000 or any severance agreements binding on the Company from performing its obligations under this Agreement in any material respectCompany;
(viii) any Contract, excluding including any purchase order guarantees, loans or similar documentation that does not contain material terms credit or sale and leaseback agreements, relating to the borrowing of money by the relationship between the parties, that is (A) a Material Customer Agreement, or (B) a Material Supplier AgreementCompany in excess of $20,000 in principal amount;
(ix) any mortgage, pledge, indenture or security agreement, Contract that contains any exclusivity rights or “most favored nations” provisions similar arrangement constituting a Lien or minimum use a Restriction upon the assets or supply requirements that are material to the Company and its Subsidiaries taken as a whole, or that is material to properties of the Company or its Subsidiaries and purports to bind their respective Affiliates (including Parent or its Affiliates after the Effective Time)Interests;
(x) any Government ContractContract with respect to the lending or investing of funds;
(xi) any Related Party ContractContract under which the Company is lessor of, or permits any Person to hold or operate, any personal property owned or controlled by the Company;
(xii) Intellectual Property Licenses and Contracts for joint ventures, strategic alliances, partnerships, sharing of profits or proprietary information;
(xiii) any Company IP Agreements other than (A) Shrink-Wrap Licenses or (B) Contracts including non-exclusive licenses Contract providing for severance, retention, change in control or other non-exclusive grants by the Company of rights insimilar payments; Membership Interest Purchase Agreement 26
(xiv) all other Contracts, to whether or under Company Intellectual Property not entered into in the ordinary course Ordinary Course of business consistent with past practice with customers of Business, other than this Agreement and the Seller Documents, the Purchaser Documents and the Company Documents, which involve more than $10,000 individually or its Subsidiaries$25,000 in the aggregate; and
(xiiixv) other Contracts (other than this Agreementany Contract for the sale or purchase of personal property having a value individually, purchase orders in the ordinary course of business consistent with past practicerespect to all sales or purchases thereunder, agreements between the Company and any of its wholly owned Subsidiaries or between any of the Company’s wholly owned Subsidiaries) that contain obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of payments in the future in excess of $100,000 per annum or $500,000 during the life of the Contract. Each such Contract described in clauses (i) – (xiii) (that is not excluded pursuant to clause (x) or (y) of the lead-in language in Section 3.9(a)), whether or not set forth on Section 3.9(a) of the Company Disclosure Letter, is referred to herein as a “Company Material Contract10,000.”
(b) True and correct in all material respects copies of Except as set forth as Item 2 on Schedule 3.10(b)(3), each Company Material Contract have been made available to Parent or publicly filed with is a valid and binding obligation of the SEC prior Company in full force and effect except to the date hereofextent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors rights generally and subject to general principles of equity. Except as would not reasonably be expected to haveset forth on Schedule 3.13(b), individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor is not in default under any of its Subsidiaries is (andMaterial Contract nor, to the Knowledge of the Company, no is any other party is) to any Material Contract in breach of or default under any Company Material Contract, (ii) each of the Company Material Contracts is in full force and effectthereunder, and is the valid, binding and enforceable obligation of the Company and its Subsidiaries, and to the Knowledge of the Company, of the other parties thereto, subject to the General Enforceability Exceptions, (iii) the Company and its Subsidiaries have performed all obligations required to be performed by them to date under the Company Material Contracts and are not (no event has occurred that with or without the lapse of time or the giving of noticenotice or both would constitute a breach or default by the Company or any party thereunder. The Company has delivered to the Purchaser true, or bothcorrect and complete copies of all written Material Contracts and has set forth the material terms of all verbal Material Contracts on Schedules 3.13(a)(i) in breach thereunder and (iv) neither the ii). The Company nor any of its Subsidiaries has not received any a notice of termination with respect to, and, to the Knowledge under any of the Company, no party has threatened to terminate, any Company Material ContractContracts other than as set forth in Schedule 3.10(b)(3).
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Blonder Tongue Laboratories Inc)