Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract: (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act); (ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries); (iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company); (iv) that is a Government Contract; (v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000; (vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations; (vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole; (viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company); (ix) any hedging, swap, derivative, or similar Contract; (x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole; (xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole; (xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000; (xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024; (xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions); (xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or (xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries. (b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 3 contracts
Sources: Merger Agreement (Tzuo Tien), Merger Agreement (Zuora Inc), Merger Agreement (Slaa Ii (Gp), L.L.C.)
Material Contracts. (a) Except (i) as filed as exhibits set forth in Schedule 3.10 and after giving effect to the Company SEC DocumentsRestructuring Transactions, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as none of the date hereof, neither the Company nor any Subsidiary of the Company ELN Companies is a party to or is otherwise bound by any Contractof the following Contracts relating to the Business (collectively, the “Material Contracts”), other than the CCC Agreement, which shall be of no further effect with regards to the Purchased ELN Companies as of the Closing:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any lease or sublease of Regulation S-K of the Exchange Act)real property;
(ii) that is with the ten (10) largest customers any lease or sublease of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements personal property providing for annual payments in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$50,000;
(iii) that is with any Contract for the ten purchase of goods, services, materials, supplies or equipment providing for either (10A) largest vendors annual payments in excess of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 $100,000 or (as determined based on cost B) aggregate payments in excess of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$250,000;
(iv) that is a Government Contractany distribution, sales, advertising or agency Contract providing for either (A) annual payments to or by an ELN Company in excess of $100,000 or (B) aggregate payments to or by an ELN Company in excess of $250,000;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000any Contract granting any Person “most favoured nation” status or “exclusivity” or similar rights;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of Contract with any Person Governmental Authority providing for aggregate consideration either (A) annual payments in excess of $5,000,000 by the Company 100,000 or any (B) aggregate payments in excess of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations$250,000;
(vii) containing (A) a covenant any Contract for any partnership, joint venture, strategic alliance or other provision limiting in similar arrangement;
(viii) any Contract providing for the settlement of any material respect the ability of the claim against any ELN Company or relating to the Business;
(ix) any Subsidiary Contract relating to the acquisition or divestiture of the Company to compete or engage in any line of business or assets (whether by merger, sale of equity, sale of assets or otherwise) (1) that have obligations remaining to compete with be performed or liabilities continuing after the date of this Agreement other than in the Ordinary Course of Business, or (2) that took place during the one year period prior to the Closing Date;
(x) any Contract granting any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or refusal, right of first offer or similar right that limits the ability of the Company to purchase or acquire any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of material assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation business of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the an ELN Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (any Contract requiring an ELN Company to make any advance, loan, extension of credit or a covenantcapital contribution to, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or investment in, any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholePerson;
(xii) that is any Contract (A) evidencing or guaranteeing any Indebtedness (including all loan agreements, notes, bonds, debentures, indentures or guarantees), or (B) creating or granting a Company Real Property Lease with remaining obligations in excess Lien on the Shares or any assets or properties of $1,000,000an ELN Company, other than Permitted Liens;
(xiii) that involves a material joint ventureany Contract between an ELN Company, profit sharingon the one hand, partnership or similar agreement from which and the Company Seller, any Affiliate of the Seller or any director, manager or officer of its Subsidiaries recognized revenues in excess of $1,000,000 during an ELN Company, on the fiscal year ended January 31, 2024other hand;
(xiv) any license, sublicense or royalty agreement relating to any Intellectual Property, other than standard end-user license agreements relating to any “shrink wrap,” “click wrap” or “off the shelf” software that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)generally commercially available;
(xv) any stockholders’ agreement, proxy, voting trust agreement Contract that limits or registration rights agreement purports to limit the ability of an ELN Company (or similar agreements, arrangements or commitments relating to any equity securities would limit the ability of the Company Purchaser after the Closing) (A) to engage in any line of business, (B) to compete with any Person, (C) to operate in any geographic area, (D) to Solicit or accept business from the customers of any of its Subsidiaries Person or relating (E) to disposition, voting Solicit for employment or dividends with respect to hire any equity securities of the Company or any of its SubsidiariesPerson; or
(xvi) any other Contract of a type that is with an affiliate not covered by the other clauses of this Section 3.10(a) that (A) is not terminable on not more than 60 days’ notice and without the payment of any penalty by, or any other Person that would be required material consequence to, applicable ELN Company or (B) is material to be disclosed under Item 404 the operation of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesBusiness.
(b) Each The Seller has made available to the Purchaser a true, complete and correct copy of each Material Contract made in writing, along with accurate written descriptions in all material respects of the type described above in Section 4.15(a)each Material Contract made orally, whether or not set forth in Section 4.15(a) of the Company Disclosure Scheduleincluding all amendments thereto, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of other than the Material Contracts listed in Schedule 3.10 which are subject to confidentiality agreements but for which the Seller has provided written summaries that accurately describe all material terms of such Material Contracts.
(Ac) Each Material Contract (i) is a legal, valid and binding on the Company or obligation of the applicable Subsidiary of the Company, as the case may be, ELN Company and, to the Knowledge of the CompanySeller, each the other party parties thereto, and (Bii) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity effect in accordance with its terms and (iiiii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary upon consummation of the Company hasContemplated Transactions, andwill continue in full force and effect without penalty or other adverse consequence, subject to obtaining the consents and approvals, giving the notices or taking the other actions referred to in Schedule 3.4(b). None of the ELN Companies, the Seller or, to the Knowledge of the CompanySeller, none any other party to any Material Contract is in breach of the other parties thereto haveor default under, violated in any provision ofmaterial respect, or committed has provided or failed to perform received any act written notice alleging any breach of or default under, and no in any material respect, any Material Contract. No event or condition exists, which has occurred that (with or without notice, notice lapse of time or both) would constitute a material breach of or material default under, the provisions of under any Material Contract, except Contract in each case for those violations, acts (any material respect by the applicable ELN Company or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanySeller, neither the Company nor by any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectparty thereto.
Appears in 3 contracts
Sources: Purchase Agreement (Quebecor Media Inc), Purchase Agreement (Postmedia Network Canada Corp.), Purchase Agreement (Postmedia Network Canada Corp.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(iA) any lease of real or personal property providing for annual rentals of $400,000 or more;
(B) any Contract that is reasonably likely to require either (x) annual payments to or from the Company and its Subsidiaries of more than $15 million or (y) aggregate payments to or from the Company and its Subsidiaries of more than $75 million;
(C) other than with respect to any partnership that is wholly owned by the Company or any wholly owned Subsidiary of the Company, any partnership, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership or joint venture material to the Company or any of its Subsidiaries or in which the Company owns more than a “material contract” 15% voting or economic interest, or any interest valued at more than $10 million without regard to percentage voting or economic interest;
(D) any Contract (other than among direct or indirect wholly owned Subsidiaries of the Company) 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 $5 million;
(E) any Contract required to be filed as such term is defined in an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act;
(F) any non-competition Contract or other Contract that (I) purports to limit in any material respect either the type of business in which the Company or any of its Affiliates may engage or the manner or locations in which any of them may so engage in any business, (II) could require the disposition of any material assets or line of business of the Exchange ActCompany or any of its Affiliates, (III) grants “most favored nation” status that, following the Merger, would apply to the Company or any of its Affiliates or (IV) prohibits or limits in any material respect the right of the Company or any of its Affiliates to make, sell or distribute any products or services;
(G) any Contract to which the Company or any of its Subsidiaries is a party containing a standstill or similar agreement pursuant to which the Company or any of its Subsidiaries has agreed not to acquire assets or securities of the other party or any of its Affiliates;
(H) any material Contract relating to the license of Intellectual Property (other than licenses for commercial off-the-shelf or shrink wrap software that has not been modified or customized);
(iiI) that is with any Contract between the ten (10) largest customers Company or any of its Subsidiaries and any director or officer of the Company and its Subsidiaries during or any Person beneficially owning five percent or more of the fiscal year ended January 31outstanding Shares, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementsother than compensation or severance arrangements, data processing agreements, purchase orders confidentiality agreements or statements of work or invoices indemnification agreements entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiJ) that is any Contract (other than Contracts with the ten (10customers) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure providing for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 indemnification by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or Person, except for any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, such Contract that is (x) not material to the Company and its Subsidiaries, taken as a whole;
, and (viiiy) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers entered into in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;; and
(xiK) any Contract that is contains a license (put, call or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if similar right pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) any Person or assets that is have a settlement, conciliation fair market value or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration purchase price of more than $1,000,000 after 5 million (the date of this Agreement or Contracts described in clauses (zA) that subjects through (K), together with all exhibits and schedules to such Contracts, being the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions“Material Contracts”);.
(xvii) any stockholders’ agreementSubject to applicable Law, proxy, voting trust a true and complete copy of each Material Contract has previously been made available to Parent and each such Contract is a valid and binding agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any one of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of its Subsidiaries nor, to the Company has received written notice knowledge of any of the foregoing. To the Knowledge management of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled other party thereto is in default or otherwise terminated, or threatened breach in writing to cancel or otherwise to terminate, its relationship with any material respect under the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount terms of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 3 contracts
Sources: Merger Agreement (Banta Corp), Merger Agreement (Banta Corp), Merger Agreement (RR Donnelley & Sons Co)
Material Contracts. (a) Except (i) as for this Agreement and except for Company Material Contracts filed as exhibits to the Company SEC Documents, (ii) for Reports prior to the date of this Agreement and or, as listed in Section 3.13(a) of the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Letter, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company Subsidiaries is a party to or is bound by any Contract:
(i) that is a any “material contract” (required to be filed as such term is defined in an exhibit to the Company’s annual report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC or (ii) any Contract that is:
(A) a “non-compete,” or similar agreement that restricts or purports to restrict, in any material respect, the geographic area in which the Company or any of the Company Subsidiaries may conduct any material line of business;
(iiB) that is with a joint venture, partnership or limited liability company agreement or other similar agreement or arrangement relating to the ten (10) largest customers formation, creation, operation, management or control of any joint venture, partnership or limited liability company, other than any such agreement or arrangement solely between or among the Company and its Subsidiaries during one or more Company Subsidiaries;
(C) an agreement (other than a future contract, option contract or other derivative transaction) that involves future expenditures or receipts by the fiscal Company or any Company Subsidiary of more than $40,000,000 in any one year ended January 31period that cannot be terminated on less than 90 days notice without material payment or penalty;
(D) an acquisition agreement that contains “earn-out” or other contingent payment obligations that could reasonably be expected to result in future payments by the Company or a Company Subsidiary in excess of $4,000,000;
(E) an agreement relating to indebtedness for borrowed money or any financial guaranty, 2024 (as determined based on revenue received from such customers during such time period) in each case pertaining to indebtedness in excess of $40,000,000 individually (excluding any non-disclosure agreements, data processing agreements, (i) indebtedness incurred to fund the purchase orders or statements of work or invoices entered into natural gas storage inventory in the ordinary course of business and (ii) guarantees provided in connection with the Sequent trading business in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiF) other than leases in the way of easements or rights of way, a material lease or sublease with respect to leased real property;
(G) a future contract, option contract or other derivative transaction, in any case relating to the supply or price of natural gas that is with has a term of longer than 90 days and a notional value greater than $40,000,000 (excluding any such future contract, option contract or other derivative transaction entered into by the ten (10) largest vendors local distribution company businesses of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements Subsidiaries for the benefit of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Companycustomers);
(ivH) a gas transportation contract that is a Government Contract;
(v) evidencing a capital expenditure for which reasonably expected to result in future payments are required by the Company or any Company Subsidiary in excess of $5,000,000;40,000,000 in any one year period (excluding any such contract entered into by the local distribution company businesses of the Company and the Company Subsidiaries for the benefit of customers); or
(viI) other than agreements described in Section 3.13(a)(ii)(G) and Section 3.13(a)(ii)(H), an agreement entered into since December 31, 2009 relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any Company Subsidiary of its Subsidiaries outside assets or properties in excess of $40,000,000 not made in the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
consistent with past practice. (vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract all contracts of the type described above in this Section 4.15(a3.13(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is being referred to herein as a “Company Material Contract”).” Except for Material Contracts that have expired or terminated by their terms, all of
(b) To the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice Subsidiaries is in breach of or default under the terms of any of the foregoingCompany Material Contract in any material respect. To the Knowledge knowledge of the Company, since February 1, 2021, no counterparty other party to any Company Material Contract has (A) canceled is in any material respect in breach of or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with default under the terms of any Company Material Contract. Each Company Material Contract is a valid and binding obligation of the Company or any Company Subsidiary which is a party thereto and, to the knowledge of the Company, is in full force and effect; except that (as applicablei) such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws, now or hereafter in effect, relating to creditors’ rights generally and (Bii) decreased materially or threatened equitable remedies of specific performance and injunctive and other forms of equitable relief may be subject to decrease materially or limit materially, equitable defenses and to the amount discretion of business that the court before which any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably proceeding therefor may be expected to have a Material Adverse Effectbrought.
Appears in 3 contracts
Sources: Merger Agreement (Southern Co), Merger Agreement (Agl Resources Inc), Merger Agreement
Material Contracts. (a) Except Section 4.16(a) of the Company Disclosure Schedule lists, by reference to the applicable subsection, as of the date of this Agreement, the following types of contracts and agreements to which any Group Company is a party, excluding for this purpose, any purchase orders submitted by customers on a standard form of purchase order previously made available (such contracts and agreements as are set forth on Section 4.16(a) of the Company Disclosure Schedule being the “Material Contracts”):
(i) as filed as exhibits each contract and agreement involving the receipt by or payment to the Company SEC Documentsany Group Company, of an amount exceeding $100,000 per year;
(ii) each contract and agreement with the top 10 customers and suppliers of the Group Companies;
(iii) all agreements and contracts involving the payment of royalties or other amounts calculated based upon the revenues or income of the Group Companies or income or revenues related to any Product of the Group Companies to which the Group Companies are a party, and all other consulting and management contracts that are not cancelable without penalty or further payment and without more than ninety (90) days’ notice;
(iv) all contracts involving the payment of royalties or other amounts calculated based upon the revenues or income of any Group Company;
(v) all contracts and agreements providing for this Agreement severance, retention, change in control or similar payments;
(vi) all contracts and the other agreements evidencing indebtedness (or any guaranty therefor) for borrowed money, or granting a Lien on its assets, whether tangible or intangible, to secure any indebtedness in an amount greater than $150,000;
(vii) all contracts and agreements that is a definitive purchase and sale or similar agreement entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to an acquisition or is bound disposition by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Group Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, person or all of any business entity or division or business of any person (including through merger or consolidation or the purchase of a controlling equity interest in or substantially all of the assets of such person or by any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsother manner);
(viiviii) containing all partnership, joint venture, profits sharing or similar agreements that are material to the business of the Group Companies;
(Aix) all contracts and agreements with any Governmental Authority to which any Group Company is a covenant party, other than any Company Permits;
(x) all contracts and agreements that limit, or other provision limiting in any material respect purport to limit, the ability of the Company or any Subsidiary of the Company Group Companies to compete or engage in any line of business or to compete with any Person person or entity or in any geographic areaarea or during any period of time or to hire or retain any person;
(xi) all contracts and agreements pursuant to which any Group Company leases or is a lessor of any real property;
(xii) all contracts or agreements to use any Company-Licensed IP, (other than unmodified, commercially available, “off-the-shelf” Software with a replacement cost and aggregate annual license and maintenance fees of less than $100,000);
(xiii) all contracts which involve the license or grant of rights to Company-Owned IP by the Group Companies, but excluding any customary employee nonnonexclusive licenses (or sublicenses) of Company-solicitation or no-hire clauses entered into Owned IP granted to end users according to the Group Companies’ standard terms in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease business consistent with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024past practice;
(xiv) that is a settlementall contracts involving use, conciliation license or similar Contract (x) with grant of any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries rights to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Company Intellectual Property; and
(xv) any stockholders’ agreement, proxy, voting trust commitment to enter into any contract or agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(aclauses (i) – (xvi) of the Company Disclosure Schedulethis Section 4.16(a).
(i) Each Material Contract is a legal, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary obligation of the Company, as the case may be, respective Group Company and, to the Knowledge knowledge of the CompanyCompany Signatories, each the other party parties thereto, and (B) is enforceable in full force accordance with its terms, subject to the Remedies Exceptions, and effectthe respective Group Company is not in material breach or violation of, except (i) as may be limited or material default under, any Material Contract nor has any Material Contract been canceled by bankruptcy, insolvency, moratorium and the other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and party; (ii) as would not, individually or in to the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary knowledge of the Company hasSignatories, and, to the Knowledge of the Company, none of the no other parties thereto have, violated any provision party is in material breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions of any Material Contract; and (iii) the Group Companies have not received any written, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary knowledge of the Company has received written notice Signatories, oral claim of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that default under any such counterparty presently engages in Material Contract. The Company Signatories have furnished or presently conducts with the Company made available to WinVest or its legal advisors true, correct and its Subsidiaries other thancomplete copies of all Material Contracts without redaction, in each caseincluding all modifications, as would not reasonably be expected to have a Material Adverse Effectamendments and supplements thereto.
Appears in 3 contracts
Sources: Business Combination Agreement (WinVest Acquisition Corp.), Business Combination Agreement (WinVest Acquisition Corp.), Business Combination Agreement (WinVest Acquisition Corp.)
Material Contracts. (a) Except (i) as set forth in the SEC Reports filed as exhibits prior to the Company SEC Documentsdate of this Agreement, (ii) for in Schedule 4.15 or otherwise expressly provided in this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereofAgreement, neither the Company nor any Subsidiary of the Company Subsidiaries is a party to or is bound by any Contractby:
(i) that is a “any "material contract” " (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC);
(ii) that is with any contract or agreement for the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 purchase or lease (as determined based on revenue received lessee) of materials or personal property from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders supplier or statements for the furnishing of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable services to the Company or its Subsidiaries);
(iii) any Subsidiary that involves or is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid likely to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which involve future aggregate payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its the Subsidiaries outside of the ordinary course of business pursuant to which the Company more than (x) $300,000 or its Subsidiaries have material continuing obligations(y) $100,000 in any year;
(viiiii) containing any contract or agreement for the sale, license or lease (Aas lessor) a covenant or other provision limiting in any material respect the ability of by the Company or any Subsidiary of services, materials, products, supplies or other assets, owned or leased by the Company or the Subsidiaries, that involves or is likely to compete or engage in any line of business or involve future aggregate payments to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its the Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties more than (x) $300,000 or (Dy) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, $100,000 in each case, that is material to the Company and its Subsidiaries, taken as a whole;any year
(viiiiv) any contract, agreement or instrument relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, money of the Company or any Subsidiary Subsidiary;
(v) any non-competition agreement or any other agreement or obligation which purports to limit in any respect the manner in which, or the localities in which, the business of the Company or the Subsidiaries may be conducted;
(vi) any agreement with any present or former affiliates of the Company;
(vii) any partnership, joint venture, strategic alliance or cooperation agreement (or any guarantee by the Company or of its Subsidiaries agreement similar to any of the obligations of foregoing);
(viii) any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and voting or other agreement governing how any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Shares shall be voted;
(ix) any hedging, swap, derivative, or similar Contractagreement with any shareholders of the Company;
(x) that is a license any agreement with any Managed Provider, including without limitation any such management agreement, employee lease agreement, billing services agreement, option agreement or evidence of indebtedness; or
(or a covenant, consent xi) any contract or other rights in agreement which would prohibit or to use Intellectual Property) granted by materially delay the Company consummation of the Merger or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant transactions contemplated by this Agreement. The foregoing contracts and agreements to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted are parties or are bound are collectively referred to customers in the ordinary course of business, and/or (C) that is otherwise material to the herein as "Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesMaterial Contracts."
(b) Each Company Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and(or, to the Knowledge of the Companyextent a Subsidiary is a party, each other party thereto, such Subsidiary) and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any and each Subsidiary of the have performed, in all material respects, all obligations required to be performed by them to date under each Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults whichwhere such noncompliance, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. The Company has, or has caused to be, made available to Parent or its counsel true and complete copies of the Company Material Adverse Effect andContracts requested by same and any and all ancillary documents pertaining thereto (including, but not limited to, all amendments and waivers). Except as otherwise set forth in Schedule 4.15(b), each Company Material Contract will not cease to be legal, valid, binding, enforceable and in full force and effect on terms identical to those currently in effect as a result of February 1, 2021, the consummation of the transactions contemplated by this Agreement (except to the Knowledge extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, fraudulent transfer, moratorium or other laws relating to or affecting creditors' rights generally and by general principles of equity), nor will the Companyconsummation of such transactions constitute a breach or default under such lease or sublease or otherwise give the landlord a right to terminate such lease or sublease. Except as set forth in Schedule 4.15(b), neither the Company nor any Subsidiary knows of, or has given or received notice of, any violation or default under (nor, to the knowledge of the Company, does there exist any condition which with the passage of time or the giving of notice or both would result in such a violation or default under) any Company Material Contract.
(c) Except as disclosed in the SEC Reports filed prior to the date of this Agreement or in Schedule 4.15 or as expressly provided for in this Agreement, neither the Company nor any of the Subsidiaries is a party to any oral or written (i) employment or consulting agreement that cannot be terminated on thirty days' or less notice, (ii) agreement with any officer or other key employee of the Company has received written notice or any of the Subsidiaries the benefits of which are contingent or vest, or the terms of which are materially altered, upon the occurrence of a transaction involving the Company or any the Subsidiaries of the nature contemplated by this Agreement, the Subscription Agreement or the Voting Agreement, (iii) agreement with respect to any officer or other key employee of the Company or any of the Subsidiaries providing any term of employment or compensation guarantee or (iv) stock or stock purchase plan (other than the Option Plans), any of the benefits of which will be increased, or the vesting of the benefits of which will be accelerated, by the occurrence of any of the foregoing. To transactions contemplated by this Agreement, the Knowledge Subscription Agreement or the Voting Agreement or the value of any of the Company, since February 1, 2021, no counterparty to benefits of which will be calculated on the basis of any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effecttransactions.
Appears in 3 contracts
Sources: Agreement and Plan of Merger (Warburg Pincus Equity Partners Lp), Agreement and Plan of Merger (Hilltopper Holding Corp), Merger Agreement (Centennial Healthcare Corp)
Material Contracts. (a) Except (ias disclosed in Section 4.9(a), Section 4.9(f) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary Section 4.18 of the Company Disclosure Letter, (a) neither the Company, nor any of its Subsidiaries is a party to to, and (b) none of the Company, any of its Subsidiaries, or any of their respective properties or assets is bound by any Contractby, Contracts that:
(i) that is are or would be required to be filed by the Company as a “material contract” (as such term is defined in pursuant to Item 601(b)(10) of Regulation S-K of under the Exchange Act)Securities Act or disclosed by the Company on a Current Report on Form 8-K;
(ii) with respect to a joint venture, partnership, limited liability or other similar agreement or arrangement, related to the formation, creation, operation, management or control of any partnership or joint venture that is with material to the ten (10) largest customers business of the Company and its Subsidiaries during the fiscal year ended January 31Subsidiaries, 2024 (taken as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementsa whole, data processing agreementsor in which the Company owns more than a 20% voting or economic interest, purchase orders or statements with respect to which the Company has obligations of work or invoices entered into more than $250,000 in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)aggregate;
(iii) that is with relate to indebtedness for borrowed money, the ten (10) largest vendors deferred purchase price of the Company and its Subsidiaries during the fiscal year ended January 31property or service, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreementscredit agreement, data processing agreementsnote, purchase orders bond, mortgage, debenture or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary instrument, any letter of credit or similar facilities, any obligation to Contracts pursuant purchase, redeem, retire, defease or otherwise acquire for value any capital stock or any warrants, rights or options to which cost acquire such capital stock, or any guarantee with respect to an obligation of goods and services is paid or payable by the Company)any other Person, in each case, having an outstanding principal amount in excess of $250,000;
(iv) relate to an acquisition, divestiture, merger or similar transaction that is a Government Contractcontains representations, covenants, indemnities or other obligations (including indemnification, “earn-out” or other contingent obligations), that are still in effect and, individually or in the aggregate, could reasonably be expected to result in payments in excess of $250,000;
(v) evidencing a other than an acquisition subject to clause (iv) above, obligate the Company to make any capital commitment or expenditure for which future payments are required (including pursuant to any joint venture) in excess of $5,000,000;250,000; or
(vi) relating to prohibits the disposition payment of dividends or acquisition of any business, equity, or all or substantially all distributions in respect of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability capital stock of the Company or any of its Subsidiaries to sellSubsidiaries, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation prohibits the pledging of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities capital stock of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to prohibits the issuance of guarantees by any equity securities Subsidiary of the Company or any of its SubsidiariesCompany; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described in clauses (i) through (vi) above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” ”
(b) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither , (i) each Material Contract is valid and binding on the Company nor and any of its Subsidiaries to the extent such Subsidiary of is a party thereto, as applicable, and is in full force and effect and enforceable against the Company hasor its Subsidiary in accordance with its terms, and, (ii) to the Knowledge of the Company, none of each Material Contract is valid and binding on the other parties thereto havethereto, violated is in full force and effect and enforceable against such other party in accordance with its terms, (iii) the Company and each of its Subsidiaries has performed all obligations required to be performed by it to date under each Material Contract, (iv) neither the Company nor any provision of its Subsidiaries has received written notice of, or committed or failed to perform the existence of any act under, and no event or condition existswhich constitutes, which (with or, after notice or without notice, lapse of time or both) would constitute , will constitute, a material default or breach on the part of the Company or default under, the provisions any of its Subsidiaries under any such Material Contract, except in each case for those violations, acts (or failures to actv) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company its Subsidiaries has received written notice of from any other party to a Material Contract with respect to the termination, non-renewal or renegotiation in any material respects of the foregoing. To the terms of, and otherwise has no Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise that such other party intends to terminate, its relationship with not renew, or renegotiate in any material respects the terms of, any Material Contract.
(c) The Company or any Subsidiary (as applicable) or (B) decreased materially or threatened has made available to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each caseParent, as would not reasonably be expected to have a of the date of this Agreement, true, correct and complete copies of (including all amendments or modifications to), all Material Adverse EffectContracts.
Appears in 3 contracts
Sources: Merger Agreement (Bankrate, Inc.), Merger Agreement (Bankrate Inc), Merger Agreement (Bankrate Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofAgreement Date, neither the Company nor any Subsidiary of the Company is not a party to or is bound by any Contract:
(i) that is would be required to be filed by the Company as a “material contract” (as such term is defined in contract pursuant to Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding contains any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant competition or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right agreement that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose compete in any line of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiariesbusiness, in each caseany geographic area or with any person;
(iii) that creates any partnership, that is joint venture or similar entity with respect to any material to business of the Company and its Subsidiaries, taken as a whole;
(viiiiv) relating to that would, individually or evidencing indebtedness for borrowed moneyin the aggregate, debt securitiesprevent, warrants materially delay or other rights to acquire any debt securities, of the Company or any Subsidiary of materially impede the Company, or any guarantee by ’s ability to consummate the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Transactions;
(ix) any hedging, swap, derivative, or similar Contract;
(xv) that is a license (or a covenantan indenture, consent credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues agreement providing for the fiscal year ended January 31, 2024 indebtedness in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeintercompany agreements;
(xivi) that is a license written contract (or a covenant, consent or other rights in or to use Intellectual Propertythan this Agreement) for the sale of Third Party Rights granted to any of its assets after the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 Agreement Date in excess of $1,000,000, and/or other than in the ordinary course of business consistent with past practice;
(Cvii) that is otherwise material to under which the Company and its the Company’s Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership are expected to make annual expenditures or similar agreement from which the Company or any of its Subsidiaries recognized receive annual revenues in excess of $1,000,000 during the current or a subsequent fiscal year ended January 31, 2024year;
(xivviii) that is containing a settlementright of first refusal, conciliation right of first negotiation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require right of first offer in favor of a party other than the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Subsidiaries;
(xvix) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of that obligates the Company or any to file a registration statement under the Securities Act of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries1933 which filing has not yet been made; or
(xvix) that is with an affiliate interest rate, equity or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
swap or derivative instrument. Each such contract described in clauses (bi)-(x) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.”
Appears in 3 contracts
Sources: Merger Agreement (COV Delaware Corp), Merger Agreement (Ev3 Inc.), Merger Agreement (Covidien PLC)
Material Contracts. (a) Except (iSection 4.10(a) as filed as exhibits to of the Company SEC DocumentsDisclosure Schedule sets forth a true, (ii) for this Agreement complete and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as correct list of each of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party to or by which the Company is bound by any Contract:and which have not been entirely fulfilled or performed (such Contracts, collectively, the “Material Contracts”):
(i) all Contracts that is a “material contract” (as such term is defined contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)Membership Units or other Equity of the Company;
(ii) any Contract that is with by its terms requires the ten (10) largest customers payment by or on behalf of the Company and its Subsidiaries during in excess of $100,000 per annum or the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to delivery by the Company of goods or its Subsidiaries)services with a fair market value in excess of $100,000 per annum or provides for the Company to receive payments in excess of $100,000 per annum;
(iii) that is with all Contracts involving a loan (other than accounts receivable owing from trade debtors in the ten Ordinary Course of Business) or advance to (10) largest vendors other than travel and entertainment advances to the employees of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into extended in the ordinary course Ordinary Course of businessBusiness), and other similar Contracts that are ancillary or investment in, any Person or any agreement relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by the Company)investment in excess of $25,000;
(iv) any Contract that is (i) requires the Company to purchase any product or service in excess of $100,000 from a Government Contractthird party or (ii) requires that the Company deal exclusively with a third party in connection with the sale or purchase of any product or service;
(v) evidencing any Contract that relates to an acquisition or divestiture of material assets that contains covenants, indemnities or other contractual obligations that could impose a capital expenditure for which future payments are required in excess of $5,000,000Liability that is material to the Company;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to Contract under which the Company has any outstanding Indebtedness or its Subsidiaries have material continuing obligationsevidencing an Encumbrance on any property or asset of the Company, other than a Permitted Encumbrance;
(vii) containing all Contracts under which any Person (Aother than the Company) has directly or indirectly guaranteed Indebtedness of the Company in excess of $50,000;
(viii) any bonds or Contracts of Guarantee in which the Company acts as a covenant surety or guarantor with respect to any obligation (fixed or contingent) of another Person;
(ix) all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, joint development or similar arrangement;
(x) all Contracts involving any resolution or settlement of any actual or threatened Action under which the Company has any obligation or Liability that will continue after the Closing Date;
(xi) any Contract limiting or restraining the Company or any successor thereto from engaging or competing in any manner, in any location or in any business;
(xii) all Affiliate Contracts;
(xiii) any Company IP Agreements as well as any Contract under which the Company is a party providing for the license of or settlement with respect to any Intellectual Property including, without limitation, the Company’s Intellectual Property (other provision limiting than commercially available software and hardware) and any Intellectual Property license agreements under which the Company is currently a licensee;
(xiv) any Contract concerning the acquisition, disposition, occupancy, management or operation of any Real Property owned, leased or used by the Company;
(xv) all collective bargaining agreements entered into by the Company;
(xvi) any Contract providing that the Company indemnify any Person in an amount that would be material to the Company, other than any such agreement entered into in the Ordinary Course of Business;
(xvii) any Contracts with any Governmental Authority to which the Company is a party;
(xviii) any Contracts that limit, in any material respect respect, the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person or in any geographic areaarea or during any period of time;
(xix) all (i) employment agreements (excluding, other for certainty, any employees who are employed at will) and (ii) 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 ninety (90) days’ notice; and
(xx) any customary employee non-solicitation Contract to purchase, lease or no-hire clauses otherwise acquire the right to own, use or lease any property or assets, including such Contracts entered into by an Affiliate of the Company, for an amount in excess of $100,000, individually (in the ordinary course case of businessa lease, per annum) or $150,000 in the aggregate (B) “most favored nation”in the case of a lease, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits for the ability entire term of the Company or lease, not including any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or option term); and
(Dxxi) a minimum purchase, minimum volume, “earnout” or any other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, Contract that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, operation of the business of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) not otherwise disclosed pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionsSection 4.10(a);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract The Company is in material compliance with the terms and provisions of each Material Contract. The Company, and to the Knowledge of the type described above Company, the other party to any Material Contract is not in Section 4.15(a)breach or default under any of its terms. The Company has not received notice of any breach, whether default or not notice of termination by any Person under any Material Contract. A true, complete and correct copy of each written Material Contract has been provided to Purchaser and a description of each verbal Material Contract is set forth in Section 4.15(a4.10(a) of the Company Disclosure Schedule, .
(c) Each Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (Ai) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, thereto in accordance with its respective terms and (Bii) in full force and effect, except . Each Material Contract (ior description) as may be limited by bankruptcy, insolvency, moratorium sets forth the entire agreement and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and understanding (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary complete description of the Company hasmaterial terms, andas applicable), to the Knowledge of between the Company, none of on one hand, and the other parties thereto havethereto, violated any provision ofon the other hand, or committed or failed with respect to perform any act under, and no the subject matter thereof. No event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute an event of default under any Material Contract or result in a breach of termination thereof or default under, would cause or permit the provisions acceleration or other changes of any Material Contract, except in each case for those violations, acts (right or failures to act) and defaults which, individually obligation or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as loss of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the benefit thereunder. The Company has received written notice of no reason to believe any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty party to any Material Contract has (A) canceled or otherwise terminatedwill not fulfill its obligations thereunder in all material respects, or threatened in writing to cancel or otherwise to terminate, its relationship with and the Company has not received any notice of termination or intent to terminate by any Subsidiary party to any Material Contract.
(as applicabled) The Company has no Liability for the deferred purchase price of property, goods or services, whether connected or not to the acquisition of any business (earn-out or other similar type of payments) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectnoncompetition agreement.
Appears in 3 contracts
Sources: Membership Interest Purchase Agreement (Planet 13 Holdings Inc.), Membership Interest Purchase Agreement (Planet 13 Holdings Inc.), Membership Interest Purchase Agreement (Planet 13 Holdings Inc.)
Material Contracts. (a) Except (iSection 4.10(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company Disclosure Schedule contains a complete list of the following types of Contracts to which the Company or a Company Subsidiary is a party to or is bound by any Contractbound:
(i) that is a each “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of promulgated by the Exchange Act)SEC) with respect to the Company or any Company Subsidiary;
(ii) that is all Contracts or arrangements with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Third Party constituting joint ventures or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)partnerships;
(iii) that is with the ten all Contracts relating to Indebtedness (10other than indebtedness for borrowed money) largest vendors of the Company or any Company Subsidiary in excess of $3,000,000 and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost all Contracts relating to indebtedness for borrowed money of goods and services paid to such vendors by the Company during such time period) (excluding or any non-disclosure agreements, data processing agreements, purchase orders or statements Company Subsidiary in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$1,000,000;
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) all Contracts entered into after July 1, 2008 relating to the disposition any acquisition or acquisition of any businessdisposition, equitydirectly or indirectly (including by merger, consolidation, combination or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 amalgamation), by the Company or any of its the Company Subsidiaries outside of properties or assets or capital stock or other equity interests of another Person for aggregate consideration under such Contract in excess of $500,000, except, in each case, for acquisitions and dispositions of properties, assets and inventory in the ordinary course of business pursuant to which and consistent with past practice;
(v) all Contracts currently used in the current conduct of the business of the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant any Company Subsidiary and, to the Knowledge of the Company, any other Contract, which contain covenants that limit, or other provision limiting in any material respect purport to limit, the ability of the Company or any Company Subsidiary of the Company to compete or engage in any line of business business, or to compete with any Person in or operate at any geographic area, location or during any period of time;
(vi) each Contract that contains obligations of the Company or any Company Subsidiary secured by a Lien (other than a Permitted Lien), or provides for interest rate or currency hedging arrangements, in each case in connection with which the aggregate actual or contingent obligations of the Company and the Company Subsidiaries under such Contract are greater than $250,000;
(vii) each Contract with a Governmental Entity that involved aggregate payments of over $500,000 in 2010 or is reasonably likely to involve aggregate payments of over $500,000 in 2011;
(viii) All Contracts pursuant to which any customary employee non-solicitation material Intellectual Property is licensed (or no-hire clauses entered into rights to use are granted) to the Company or any Company Subsidiary and also both (A) used in the ordinary course current conduct of businessthe business of the Company or a Company Subsidiary and (B) subject to remaining material payment obligations by the Company or any Company Subsidiary (excluding shrink-wrap or click-wrap licenses or licenses concerning generally commercially available software);
(ix) All Contracts pursuant to which any material Company Intellectual Property is licensed (or rights to use granted) by the Company or any Company Subsidiary that are subject to remaining material payment obligations by a Third Party;
(x) all Contracts and Leases concerning the use, occupancy, management or operation of, or evidencing any interests in, any Leased Real Property that are, in each case, material to the Company and the Company Subsidiaries, taken as a whole (“Material Real Property Leases”);
(xi) all Contracts that (A) require the Company or any Company Subsidiary to use any supplier or Third Party for all or substantially all of the requirements or needs for the operation of the business of the Company or any Company Subsidiary as currently conducted, (B) obligate the Company or any Company Subsidiary to conduct business on a “most favored nation”, “exclusivitynations” or similar provisionsbasis with any Third Party, (C) a right of first refusal limit or right of first offer or similar right that limits purport to limit the ability of the Company or any Company Subsidiary to solicit any customers or clients of its Subsidiaries to sellany other Person, transfer, pledge or otherwise dispose of assets, rights or properties or (D) require the Company or any Company Subsidiary to market or co-market any clinical laboratory services or other products or services of a Third Party, or (E) are “take-or-pay” Contracts or other similar agreements or arrangements requiring the Company or any Company Subsidiary to make a minimum purchase, minimum volume, “earnout” payment for goods or other contingent, deferred or fixed payment obligation services from Third Party suppliers irrespective of the Company and its Subsidiaries, in each case, usage that is are material to the Company and its the Company Subsidiaries, taken as a whole;
(viiixii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) Contract pursuant to which the Company or any Company Subsidiary received licensing revenues for the fiscal year ended January 31is bound that includes a continuing “earn out” or other contingent payment obligation, 2024 in each case, that could result in payments in excess of $1,000,000250,000 other than ordinary course agreements with customers, suppliers or licensors;
(xiii) each Contract between or among the Company or any Company Subsidiary, on the one hand, and any of their respective Affiliates (other than the Company or any Company Subsidiary), on the other hand, that involves payments of more than $250,000 in any one year;
(xiv) each Contract involving aggregate payments of over $1,000,000 over its remaining term that is not terminable by the Company or one of its Subsidiaries without penalty and on less than 120 days notice, other than non-exclusive licenses granted to customers Contracts entered into in the ordinary course of business and consistent with past practice; and
(xv) all other Contracts, whether or not made in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) absence of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is would have a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Material Adverse Effect. Each Contract of the type described above in this Section 4.15(a4.10(a), whether or not set forth in Section 4.15(a4.10(a) of the Company Disclosure Schedule, Schedule is referred to herein as a “Company Material Contract.” ”
(b) Except for matters that would not have a Company Material Contracts that have expired or terminated by their termsAdverse Effect, all of the (i) each Company Material Contracts are (A) Contract is a legal, valid and binding on obligation of the Company or a Company Subsidiary, as applicable, in full force and effect and enforceable against the applicable Company or a Company Subsidiary in accordance with its terms, subject to the Bankruptcy and Equity Exceptions, (ii) to the Company’s Knowledge, each Company Material Contract is a legal, valid and binding obligation of the Companycounterparty thereto, as in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the case may beBankruptcy and Equity Exceptions, (iii) the Company and each of the Company Subsidiaries, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may has performed all obligations required to be limited performed by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a it under each Company Material Adverse Effect. Neither Contract (excluding performance obligations not yet due), (iv) neither the Company nor any Company Subsidiary has received any written claim or notice of (A) a default, termination or cancellation under any Company Material Contract, (B) any intent or threat to claim any of the foregoing or (C) seeking to amend any provision of any Company has, andMaterial Contract in a manner materially adverse to the Company or any Company Subsidiary and (v) neither the Company nor any Company Subsidiary nor, to the Knowledge of the Company’s Knowledge, none of the any other parties party thereto have, violated any provision is in breach or violation of, or committed or failed to perform any act default under, any Company Material Contract and no event has occurred, including the execution by the Company of this Agreement, or condition existsnot occurred through the Company’s or any Company Subsidiary’s action or inaction or, which (to the Company’s Knowledge, the action or inaction of any Third Party, that with notice or without notice, lapse of time or both) would , will constitute a breach of or violation of, or default under, the provisions of any Company Material Contract, except in each case for those violations, acts (or failures to act) . Complete and defaults which, individually or in the aggregate, would not reasonably be expected to have a correct copies of all Company Material Adverse Effect and, Contracts (as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (Aamended or modified) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship are either publicly filed with the Company SEC or any Subsidiary (as applicable) or (B) decreased materially or threatened have been otherwise made available to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectParent.
Appears in 3 contracts
Sources: Merger Agreement, Merger Agreement (Quest Diagnostics Inc), Merger Agreement (Celera CORP)
Material Contracts. (a) Except (i) as for the contracts described in or filed as exhibits an exhibit to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into Documents or set forth in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 3.13 or Section 3.18 of the date hereofCompany Disclosure Schedule (collectively, the “Material Contracts”), neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractof the following:
(i) that is a “material contract” (as such term is defined any contract or agreement entered into other than in Item 601(b)(10) the ordinary course of Regulation S-K business consistent with past practice for the acquisition of the Exchange Act)securities of or any material portion of the assets of any other Person or entity;
(ii) that is with any contract or agreement for the ten (10) largest customers purchase of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 100,000 which cannot be cancelled by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company without penalty or its Subsidiaries have material continuing obligationsfurther payment or without more than 45 days’ notice;
(viiiii) containing (A) a covenant any contract, agreement or instrument in excess of $100,000 that expires or may be renewed at the option of any Person other provision limiting in any material respect the ability of the than Company or any Subsidiary of its Subsidiaries so as to expire more than one year after the date of this Agreement;
(iv) any material contract with any independent contractor or consultant (or similar arrangement) which is not cancelable without penalty and without more than thirty (30) days’ notice;
(v) any trust indenture, mortgage, promissory note, loan agreement or other contract, agreement or instrument 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, in each case, where Company or any of its Subsidiaries is a lender, borrower or guarantor;
(vi) any contract or agreement limiting the freedom of Company or any of its Subsidiaries or any of their respective employees to compete or engage in any line of business or to compete with any other Person;
(vii) any contract or agreement with any Affiliate of Company;
(viii) any agreement of guarantee, support, indemnification, assumption or endorsement of, or any similar commitment with respect to, the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or indebtedness of any other Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses those entered into in the ordinary course of business;
(ix) any material agreement which would be terminable other than by Company or its Subsidiaries or under which a payment obligation would arise or be accelerated, in each case as a result of the consummation of the transactions contemplated by this Agreement;
(Bx) “most favored nation”any material alliance, “exclusivity” cooperation, joint venture, stockholders’ partnership or similar provisionsagreement;
(xi) any broker, distributor, dealer, agency, sales promotion, market research, market consulting or advertising agreement involving in excess of $100,000 (Cother than software licenses entered into in the ordinary course of business);
(xii) a right any material research, development, sales representative, marketing or reseller agreement, or any service, support or maintenance agreement related to the business or technology of first refusal Company or any of its respective Subsidiaries;
(xiii) any material agreement, option or commitment or right with, or held by, any Third Party to acquire, use or have access to any assets or properties, or any interest therein, of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive software licenses granted to customers entered into in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024);
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements agreement that affects or restrictions (other than ordinary course confidentiality requirements relates to Company IP, including, without limitation, any material agreement pursuant to which any person or restrictions)entity is authorized to use or has an ownership or security interest in any Company IP;
(xv) any stockholders’ agreement, proxy, voting trust material contract or agreement which would require any consent or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities approval of a counterparty as a result of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities consummation of the Company or any of its Subsidiariestransactions contemplated by this Agreement; orand
(xvi) is with an affiliate or any other Person that contract the loss of which would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the have a Company and its wholly-owned SubsidiariesMaterial Adverse Effect.
(b) Each Contract Company and each of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that its Subsidiaries have expired or terminated by their terms, performed all of the obligations required to be performed by them and are entitled to all accrued benefits under, and are not alleged to be in default in respect of, each Material Contracts are (A) valid and binding on the Contract to which Company or the applicable any Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other is a party thereto, and (B) in full force and effector by which Company or any Subsidiary is bound, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither Each of the Company nor any Subsidiary Material Contracts is in full force and effect, without amendment (other than as disclosed in Section 3.13 of the Company hasDisclosure Schedule), andand there exists no default or event of default or event, occurrence, condition or act, with respect to Company or any of its Subsidiaries or, to the Knowledge knowledge of Company, with respect to any other contracting party, which, with the giving of notice, the lapse of the Company, none time or the happening of the any other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition existscondition, which (with would become a default or without notice, lapse event of time or both) would constitute a breach of or default under, the provisions of under any Material Contract, except in each case for those violationsexcept, acts (or failures to act) and defaults whichas would not, individually or in the aggregate, would not reasonably be expected material to Company. True, correct and complete copies of all Material Contracts have a Company Material Adverse Effect and, been furnished or made available to Parent or filed as of February 1, 2021, exhibits to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSEC Documents.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Palmsource Inc)
Material Contracts. (a) Except (iSection 4.14(a) as filed as exhibits of the Purchaser Disclosure Schedule sets forth a list of each of the following Contracts to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planswhich, as of the date hereofof this Agreement, neither the Company nor Purchaser or any Subsidiary of the Company its Subsidiaries is a party to or is bound by any (each, a “Purchaser Material Contract:”):
(i) that is a any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC as determined as of the date of this Agreement);
(ii) that is with each Contract (A) not to (or otherwise restricting or limiting the ten (10) largest customers ability of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Purchaser or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(viito) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation area or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits to restrict the ability of the Company Purchaser or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, conduct business in each case, that is material to the Company and its Subsidiaries, taken as a wholeany geographic area;
(viiiiii) relating to each Contract (other than any Purchaser Benefit Plan) providing for or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company resulting in payments by Purchaser or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries that exceeded $250,000 in the calendar year ended December 31, 2023, or that is reasonably likely to require, during the remaining term of the obligations such Contract, annual payments by Purchaser or any of its Subsidiaries that exceed $250,000;
(iv) all Contracts granting to any Person an option or a first refusal, first offer, or similar preferential right to purchase or acquire any Purchaser Assets;
(v) all material Contracts (A) for the granting or receiving of a license, sublicense or franchise (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and including any of its wholly-owned Subsidiaries or between or among such Contracts relating to any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by providing for or resulting in payment over $250,000 per year or (B) under which any Person is obligated to pay or has the Company right to receive a royalty, license fee, franchise fee or any Subsidiary similar payment in which it is reasonably expected to pay or receive a royalty, license fee, franchise fee or similar payment over $250,000, in each case of the Company to Company Intellectual Property clause (A) on an exclusive basis, and (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000), other than agreements with employees, non-exclusive licenses granted to customers in the ordinary course of businessPurchaser’s or its Subsidiaries’ customers, and/or (C) and non-exclusive licenses to commercially available, off-the-shelf Software that is otherwise material to the Company and its Subsidiaries taken as a wholehave been granted on standardized, generally available terms;
(xivi) that is a license (or a covenantall partnerships, consent joint ventures, or other rights in similar agreements or to use Intellectual Propertyarrangements;
(vii) any agreement with any director, officer, or stockholder of Third Party Rights granted to the Company Purchaser or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) thereof that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed described under Item 404 of Regulation S-K promulgated under of the Exchange ActSEC in the Purchaser SEC Reports;
(viii) any 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), except any such agreement with an aggregate outstanding principal amount not exceeding $1,000,000;
(ix) any agreement for the disposition or acquisition by Purchaser or any of its Subsidiaries with material obligations of Purchaser or any of its Subsidiaries (other than confidentiality obligations) remaining to be performed, or material Liabilities of Purchaser or any Contract solely among of its Subsidiaries continuing, after the Company and its wholly-owned Subsidiariesdate of this Agreement, of any material business or any material amount of assets other than in the ordinary course of business;
(x) any agreement restricting or limiting the payment of dividends or the making of distributions to stockholders, including intercompany dividends or distributions other than such restrictions or limitations that are required by applicable Law; and
(xi) all material agreements with any Governmental Authority.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a4.14(b) of the Purchaser Disclosure Schedule sets forth all Contracts granting to any Person an option or a first refusal, first offer, or similar preferential right to purchase or acquire any material assets of Purchaser, a true and complete copy of which have been made available to the Company.
(c) A true and complete copy of each Purchaser Material Contract (including any related amendments) entered into before the date of this Agreement has been filed as an exhibit (by reference or otherwise) to the Purchaser Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on April 30, 2024, or disclosed by Purchaser in a subsequent Purchaser SEC Report or made available to the Company Disclosure Schedule, before the date of this Agreement. Each Purchaser Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company agreement of Purchaser or the its applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effectSubsidiary, except (i) as may where the failure to be limited by bankruptcy, insolvency, moratorium valid and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as binding would not, individually or in the aggregate, reasonably be expected to have a Company Purchaser Material Adverse Effect. Neither the Company nor any Except as would not be material to Purchaser, (i) neither Purchaser or such Subsidiary of the Company has, andnor, to the Knowledge of the CompanyPurchaser, none of the any other parties thereto haveparty, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a is in breach of or default under, the provisions of under any such Purchaser Material Contract, except in each case for those violations, acts (or failures to actii) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1the date of this Agreement, 2021, to the Knowledge there are no material disputes concerning any such Purchaser Material Contract and (iii) as of the Companydate of this Agreement, neither the Company nor no party under any Subsidiary of the Company Purchaser Material Contract has received given written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty its intent to any Material Contract has (A) canceled terminate or otherwise terminated, or threatened in writing seek a material amendment to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Purchaser Material Adverse EffectContract.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Fusion Fuel Green PLC), Stock Purchase Agreement (Ilustrato Pictures International Inc.)
Material Contracts. (a) Except Subsections (i) as filed as exhibits to through (x) of Section 3.16(a) of the Company SEC DocumentsDisclosure Schedule list the following types of Contracts, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor arrangements or understandings to which any Subsidiary of the Group Company is a party to or is bound by other than any Contract:
(i) such Contract that is a “material contract” Company Employee Plan or Company Employee Agreement (such Contracts as such term is defined are required to be set forth in Item 601(b)(10Section 3.16(a) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during Disclosure Schedule being the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business“Material Contracts”), and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability none of the Company or any of its Subsidiaries is a party to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (Dbound by any Material Contracts not listed in Section 3.16(a) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesDisclosure Schedule:
(i) each 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) each Contract that is expected, as of the date hereof, by the Company to involve consideration of more than US$500,000, in each casethe aggregate, that is material over the remaining term of such Contract;
(iii) all Contracts relating to any credit, loan or facility arrangement, guarantee or other security arrangement, or Indebtedness (whether or not incurred, assumed, guaranteed or secured by any asset of any Group Company) in excess of US$500,000, other than any such Contracts solely between any Group Companies;
(iv) all joint venture contracts, strategic cooperation or partnership arrangements, or other agreements involving a sharing of profits, losses, costs or liabilities by any Group Company;
(v) all Contracts relating to the purchase or sale of any shares or securities of, or other equity interests in, any Group Company and its Subsidiariesother than Company Equity Awards;
(vi) all Contracts that limit, taken as a wholeor purport to limit, in any material respect, the ability of any Group Company to compete in any line of business or with any person or entity or in any geographic area or during any period of time;
(vii) all Contracts involving any directors, executive officers or shareholders of the Company holding more than 5% of the share capital of the Company, required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act;
(viii) relating all Contracts providing for any change of control payment or similar payments to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, Third Party in excess of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);US$500,000; and
(ix) any hedgingall other Contracts, swap, derivative, whether or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers not made in the ordinary course of business, and/or (C) that is otherwise which are material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the any Group Company or any Subsidiary the conduct of its business, or the Company (A) on an exclusive basisabsence of which would, (B) on a non-exclusive basisindividually or in the aggregate, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is have a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesMaterial Adverse Effect.
(b) Each Except as would not have a Company Material Adverse Effect, (i) each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on agreement, subject to the Bankruptcy and Equity Exception, and no Group Company is in material breach or violation of, or default under, any Material Contract, (ii) as of the applicable Subsidiary date hereof, no Group Company has received any notice of cancellation of any Material Contract from the other party; (iii) to the Knowledge of the Company, as of the case may bedate hereof, no other party is in material breach or violation of, or default under, any Material Contract; and (iv) as of the date hereof, no Group Company has received any written claim of material default under any such Material Contract and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles no fact or event exists that could give rise to any claim of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions of under any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the . The Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship filed with the Company SEC or furnished or made available to Parent true and complete copies of all Material Contracts, including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 2 contracts
Sources: Merger Agreement (Wang Benson Haibing), Merger Agreement (Taomee Holdings LTD)
Material Contracts. (a) Except (i) Except as filed as exhibits to set forth in Schedule 5.1(j)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Letter, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(iA) any lease of real or personal property providing for annual rentals of $15,000,000 or more;
(B) any agreement or agreements involving more than $5,000,000 individually or $10,000,000 in the aggregate to acquire (I) a License, or an interest in an entity holding a License, that is upon acquisition by the Company would become a “Communications License or (II) any interest in an entity that holds a License that upon acquisition of such entity by the Company would become a Foreign License;
(C) any partnership, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership or joint venture material contract” to the Company or any of its Subsidiaries or in which the Company or any of its Subsidiaries owns any interest valued at more than $10,000,000 without regard to percentage voting or economic interest (unless pursuant to such agreement or arrangement the Company and its Subsidiaries do not have a future funding obligation reasonably likely to require funding of more than $15,000,000 in the aggregate);
(D) any Contract (other than among direct or indirect wholly-owned Subsidiaries of the Company) 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 $50,000,000;
(E) any Contract required to be filed as such term is defined in an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K of under the Exchange Securities Act);
(iiF) any non-competition Contract or other Contract that is with (I) purports to limit in any material respect either the ten type of business in which the Company or its Subsidiaries (10or, after the Effective Time, Parent or its Affiliates) largest customers may engage or the manner or locations in which any of them may so engage in any business or (II) could require the disposition of any material assets or line of business of the Company and or its Subsidiaries during or, after the fiscal year ended January 31Effective Time, 2024 Parent or its Affiliates;
(as determined based on revenue received from such customers during such time periodG) any Contract (excluding other than (I) a Contract with respect to compensation or similar arrangements not involving a director of the Company or one of the Section 16 Officers and (II) any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices Contract entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by between the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company and any director or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability officer of the Company or any Subsidiary Person beneficially owning, as of the Company to compete date hereof, five percent or engage in more of the outstanding Shares;
(H) any line of business or to compete with any Person in any geographic areaContract that contains a put, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer call or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) any Person or assets that is have a settlement, conciliation fair market value or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration purchase price of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);25,000,000; and
(xvI) any stockholders’ agreementother Contract or group of Contracts with a single counterparty that, proxy, voting trust agreement if terminated or registration rights agreement or similar agreements, arrangements or commitments relating subject to a default by any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notwould, individually or in the aggregate, reasonably be expected to have result in a Company Material Adverse Effect. Neither Effect (the Company nor any Subsidiary Contracts described in clauses (A) – (I), together with all exhibits and schedules to such Contracts, being the “Material Contracts”).
(ii) A true and complete copy of each Material Contract has previously been delivered or made available to Parent (subject to applicable confidentiality restrictions) and each such Contract is a valid and binding agreement of the Company hasor one of its Subsidiaries, and, to as the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act undercase may be, and no event or condition existsis in full force and effect, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of its Subsidiaries nor, to the knowledge of the Company has received written notice of any of the foregoing. To the Knowledge officers of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled other party thereto is in material default or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with breach under the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount terms of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Merger Agreement (SBC Communications Inc), Merger Agreement (At&t Corp)
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.17 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Seller Disclosure Schedule sets forth as of the date hereof, neither the Company nor any Subsidiary of this Agreement a true and complete list of the Company following Contracts (other than purchase orders and invoices, Benefit Plans and Compensation Agreements) to which any of the Transferred Entities is a party to or is bound by any Contract:(the “Material Contracts”):
(i) that is a “material contract” (as such Contracts involving payments by the Transferred Entities of more than $250,000 per year or $2,000,000 over the term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)Contract, or having a term of more than four (4) years and not terminable within 180 days;
(ii) that is with Contracts requiring the ten (10) largest customers Transferred Entities to provide more than $250,000 of services per year or $2,000,000 of services over the term of the Company Contract, or that are anticipated to generate, individually, revenue for any Transferred Entity of more than $1,000,000 in 2022 or 2023;
(iii) any Contract containing any future capital expenditure obligations of the Transferred Entities (or otherwise relating to the Business) in excess of $250,000;
(iv) Contracts evidencing Indebtedness for borrowed money of any Transferred Entity with a principal amount greater than $1,000,000;
(v) Contracts requiring any Transferred Entity to pay, perform, discharge or otherwise guarantee any Indebtedness of any other Person (other than a Transferred Entity) with a principal amount greater than $1,000,000;
(vi) any joint venture, partnership or other similar agreement involving co-investment between any Transferred Entity and its Subsidiaries during a third party;
(vii) Contracts for the fiscal year ended January 31sale, 2024 (as determined based on revenue received from such customers during such time period) (excluding transfer or other disposition of any non-disclosure agreementsassets of any Transferred Entity involving payments of more than $1,000,000, data processing agreements, purchase orders or statements other than sales of work or invoices entered into inventory in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)business consistent with past practice;
(iiiviii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) Contract relating to the acquisition or disposition or acquisition of any businessbusiness (whether by merger, equitysale of stock, sale of assets or otherwise) under which the Transferred Entities have a continuing obligation with respect to an “earn out,” contingent purchase price, or all similar contingent payment obligation that is reasonably expected to be $250,000 or substantially all of the assets of any Person for aggregate consideration greater in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;amount; and
(viiix) any Contract containing (A) a covenant covenants that would restrict or other provision limiting limit in any material respect the ability of the Company or any Subsidiary of Transferred Entities after the Company Closing to compete or engage in any line of business the Business or compete with respect to compete the Business with any Person or in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Sellers have made available to Purchaser true, correct and complete copies of each Material Contract and all amendments related thereto. Each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or obligation of the applicable Subsidiary of the Company, as the case may beTransferred Entities, and, to the Knowledge knowledge of the CompanySellers, of each other party counterparty thereto, and (B) is in full force and effect, and no Transferred Entity, or, to the knowledge of Sellers, other party thereto is in breach of, or in default under, any such Material Contract, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default thereunder by any of the Transferred Entities, or, to the knowledge of Sellers, any other party thereto, except (i) as may for such failures to be limited by bankruptcyvalid, insolvencybinding or in full force and effect and such breaches, moratorium defaults or events that have not had and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Ambipar Emergency Response), Purchase and Sale Agreement (Ambipar Emergency Response)
Material Contracts. (a) Except (i) as filed as exhibits to set forth in Section 3.13 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereof, neither there are no Contracts included in the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
Purchased Assets (i) containing covenants that is limit or purport to limit the ability of a “material contract” (as such term is defined Seller or Transferred Entity to compete in Item 601(b)(10) any line of Regulation S-K business or with any Person, industry or geographical area or during any period of time, that relates to the Exchange Act);
Business; (ii) which expressly creates a partnership or joint venture or similar arrangement that is with relates to the ten (10) largest customers operation of the Company Business; (iii) for the sale or exclusive license of any material assets of the Business other than Inventory or Products or for the furnishing of services by a Seller or Transferred Entity other than in the ordinary course of business consistent with past practice; (iv) which is a collective bargaining agreement, employee association agreement or other agreement with any labor union, employee representative group, works council or similar collection of employees; (v) between or among a Seller or Transferred Entity, on the one hand, and its Subsidiaries during one or more Affiliates of a Seller (other than another Seller or Transferred Entity), on the other hand; (vi) under which the Business has made payments in excess of $2,000,000 in the last fiscal year ended January 31, 2024 or anticipate making payments in excess of $2,000,000 in the current fiscal year (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements invoices entered into in the ordinary course of work business and ordinary course trade payables and trade receivables negotiated on an arms’ length basis); (vii) involves the sale, development, use or license of any Intellectual Property that is primarily used in the conduct of and material to the Business other than non-exclusive licenses entered into in the ordinary course of business; (viii) under which the Business received payments in excess of $2,000,000 in the last fiscal year or anticipates receiving payments in excess of $2,000,000 in the current fiscal year (other than sales orders or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid ); or payable (ix) containing any “take-or-pay” or “requirements” provision requiring any Seller (relating to the Company Business) or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost any Transferred Entity to make a minimum payment for or purchase a minimum quantity of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreementsfrom third party suppliers irrespective of usage, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar except for Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
under this clause (ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in which require payments by or to use Intellectual Property) granted by the Company or any Subsidiary Business of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more less than $1,000,000 after the date of this Agreement or per annum. Each such contract described in clauses (zi)-(ix) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all ”
(b) As of the date hereof (i) Each Seller and Transferred Entity is not in material breach of or default under any Material Contracts are (A) valid and binding on the Company Contract to which such Seller or the applicable Subsidiary of the Company, as the case may be, Transferred Entity is a party and, to the Knowledge of the CompanyHoneywell, each no other party theretoto any Material Contract is in breach thereof or default thereunder, (ii) o the Knowledge of Honeywell, neither any Seller nor any Transferred Entity has received any written notice or claim of material default under any Material Contract or, as of the date of this Agreement, any written notice of an intention to terminate or challenge the validity or enforceability of any Material Contract and to the Knowledge of Honeywell, no such action is threatened, and (Biii) to the Knowledge of Honeywell, no event has occurred that, with or without notice or lapse of time or both, would result in full force a material breach or default under any Material Contract by Honeywell. Sellers have Made Available to Purchaser true and effectcomplete copies of each Material Contract, except including all material amendments, modifications, supplements, exhibits, schedules, addenda and restatements thereto and thereof. Sellers have not posted any surety bond or letter of credit with respect to the Business.
(ic) as may be limited by bankruptcy, insolvency, moratorium Each Material Contract is valid and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in binding on the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, applicable Seller and/or Transferred Entity and, to the Knowledge of the CompanySellers, none of on the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, subject to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEnforceability Exceptions.
Appears in 2 contracts
Sources: Stock and Asset Purchase Agreement (Honeywell International Inc), Stock and Asset Purchase Agreement (Be Aerospace Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and for the other agreements entered into in connection Contracts filed with the transactions contemplated hereby SEC by the Company as exhibits to reports, schedules, forms, statements, and (iiiother documents and publicly available on ▇▇▇▇▇ prior to the date of this Agreement, Section 4.01(p) for of the Company Employee PlansDisclosure Schedule sets forth a true and complete list, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contractof:
(i) each Contract that is would be required to be filed by the Company as a “material contract” (as such term is defined in pursuant to Item 601(b)(10) of Regulation S-K of under the Exchange Securities Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant each Contract to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) is a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right party that limits materially restricts the ability of the Company or any of its Subsidiaries to sellcompete in any business or with any person in any geographical area or grants a material right of first refusal or first offer or similar right (or will impose such limitations on Parent or any of its Affiliates following the Offer or the Merger);
(iii) each Contract that requires payments by or to the Company and/or its Subsidiaries in an amount in excess of five hundred thousand dollars ($500,000) per annum, transferexcept for any such Contract that may be canceled, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” without penalty or other contingentliability to the Company or any of its Subsidiaries, deferred upon notice of 90 days or fixed payment obligation less other than sales or purchase orders in the ordinary course of business;
(iv) each Contract relating to indebtedness for borrowed money in excess of five hundred thousand dollars ($500,000) or providing for the creation of any encumbrance upon any of the material assets of the Company and or any of its Subsidiaries;
(v) each Contract that is a material license, in each case, sublicense or other contract pursuant to which the Company or a Subsidiary of the Company is authorized to use any third party Intellectual Property that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary business of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each caseexcluding generally commercially available, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its whollyoff-owned Subsidiaries or between or among any whollythe-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivativeshelf software programs, or similar Contract;
pursuant to which any third party (x) that is a license (or a covenant, consent or other rights in or authorized to use Material Intellectual Property) granted Property owned by the Company or any Subsidiary of the Company that is material to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the business of the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 (y) has obtained and continues to have exclusive rights in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeMaterial Intellectual Property;
(xivi) that is a license (each Contract with respect to co-promotion of, or a covenantcollaboration with respect to, consent any product or other rights in product candidate or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basisdrug discovery platform, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, venture or material partnership agreement (excluding information technology Contracts or license or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) agreements with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries respect to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionsIntellectual Property);
(xvvii) any stockholders’ agreement, proxy, voting trust agreement each Contract which would prohibit the consummation of the Offer or registration rights agreement the Merger; and
(viii) each Contract with or similar agreements, arrangements or commitments relating to any equity securities of binding upon the Company or any of its Subsidiaries or relating to disposition, voting any of their respective properties or dividends with respect to any equity securities assets that is of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person type that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Securities Act, other than any . Each such Contract solely among the Company and its wholly-owned Subsidiaries.
described in clauses (bi) Each Contract of the type described through (viii) above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Company Material Contract.” Except for ”. Including Contracts filed with the SEC by the Company as exhibits to reports, schedules, forms, statements, and other documents and publicly available on ▇▇▇▇▇ prior to the date of this Agreement, the Company has previously made available to Parent complete and accurate copies of each Company Material Contract. Each of the Company Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) is valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, Company party thereto and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may for such failures to be limited by bankruptcy, insolvency, moratorium valid and other similar Applicable Law affecting creditors’ rights generally binding or to be in full force and by general principles of equity and (ii) as effect that would notnot reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither There is no default under any Company Material Contract by the Company nor or any Subsidiary of the Company has, andits Subsidiaries or, to the Knowledge of the Company, none of the by any other parties thereto have, violated any provision of, or committed or failed to perform any act underparty thereto, and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach default thereunder by the Company or any of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021its Subsidiaries or, to the Knowledge of the Company, neither the Company nor by any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other thanparty thereto, in each case, case except as would not reasonably be expected to have have, individually or in the aggregate, a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (King Pharmaceuticals Inc), Merger Agreement (Alpharma Inc)
Material Contracts. (ai) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into set forth in connection with the transactions contemplated hereby and (iii) for Company Employee PlansSchedule 8(d), as of the date hereofhereof Seller, neither with respect to the Company nor any Subsidiary of the Company Business, is a not party to or is otherwise bound by any Contractor subject to:
1) any written employment, severance or sales representative contract which contains an obligation (iexcluding commissions) that is a “material to pay more than $100,000 per year;
2) any written consulting contract” (as such term is defined in Item 601(b)(10;
3) of Regulation S-K any real property lease or equipment lease which constitutes part of the Exchange Act)Business or the Assets;
(ii4) that is any Contract containing any covenant limiting the freedom of Seller, with the ten (10) largest customers respect of the Company and its Subsidiaries during Business or the fiscal year ended January 31operations of the Business, 2024 (as determined based on revenue received from such customers during such time period) (excluding to engage in any non-disclosure agreements, data processing agreements, purchase orders line of business or statements of work or invoices entered into compete with any Person in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)any geographic area in any material respect;
(iii5) that is with any Contract in effect on the ten (10) largest vendors date of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) this Agreement relating to the disposition or acquisition of any business, equitythe assets of, or all any interest in, any business enterprise which relates to the Business other than in the Ordinary Course of Business;
6) any offset agreement entered into in connection with an international sales transaction and relating to any contract that imposes on the Business an obligation to perform that will continue in effect on or substantially all of after the assets Closing Date;
7) any Contract of any Person for kind that (i) requires a payment by any party in excess of, or a series of payments which in the aggregate consideration exceed, $100,000, (ii) has a term, or requires the performance of any obligations by any party over a period, in excess of $5,000,000 by the Company one year, or (iii) involves any of its Subsidiaries outside director, officer or stockholder of the ordinary course of business Seller;
8) any Contract pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability Seller on behalf of the Company Business has made or any Subsidiary of the Company to compete will make loans or engage in any line of business advances, or to compete with any Person in any geographic area, other than any customary employee non-solicitation has or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” will have incurred debts or similar provisions, (C) become a right of first refusal guarantor or right of first offer surety or similar right that limits the ability of the Company or any of pledged its Subsidiaries to sell, transfer, pledge credit on or otherwise dispose become responsible with respect to any undertaking of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiariesanother Person, in each case, that is material in an amount over $100,000 (except for the negotiation or collection of negotiable instruments in transactions in the Ordinary Course of Business);
9) any indenture, loan agreement, note, mortgage, security agreement, lease of real property or personal property or other Contract relating to the Company borrowing of funds, an extension of credit or financing for which the Business is obligated; or
10) any Contract involving a partnership, joint venture or other cooperative undertaking.
ii) Except as disclosed in Schedule 8(d), each contract disclosed in Schedule 8(d) is a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its Subsidiariesterms (except as limited by applicable bankruptcy, taken as a whole;
(viii) insolvency, reorganization, moratorium or other laws now or hereafter in effect relating to or evidencing indebtedness for borrowed moneyaffecting creditors’ rights generally, debt securitiesincluding the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers), warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends except with respect to liquidated damages owed by Seller and any equity securities of the Company delays or circumstances in connection therewith, Seller is not in default and has not failed to perform any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may beobligation thereunder, and, to the Knowledge of Seller, there does not exist any event, condition or omission which would constitute a material breach or material default (whether by lapse of time or notice or both) by any other Person, which would give rise to any right of termination. Except as disclosed in Schedule 8(d), as of the Company, each date of this Agreement Seller has not received any written notification from any other Person party thereto, and (Bto any of the Contracts disclosed in Schedule 8(d) in full force and effect, except of a claim of default by Seller. Seller has previously made available to Buyer (i) as may be limited by bankruptcytrue, insolvencyaccurate and complete copies of each document set forth on Schedule 8(d) (collectively, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity the “Identified Contracts”) and (ii) a written description of each oral arrangement so listed on Schedule 8(d). Except as would notset forth on Schedule 8(d), individually or all such Identified Contracts and arrangements have been entered into by Seller in the aggregateOrdinary Course of Business. Except for sales of assets in the Ordinary Course of Business and this Agreement, reasonably be expected to have a Company Material Adverse Effect. Neither the Company neither Seller nor any Subsidiary of its Affiliates has any Contract or arrangement with respect to the sale or other disposition of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, Business or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAssets.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Mastec Inc), Asset Purchase Agreement (Mastec Inc)
Material Contracts. (a) Except (i) as set forth in Section 4.20 of the Company Disclosure Schedule or as filed as exhibits to an exhibit with any Company SEC Document, and other than any Company Benefit Plan set forth on Section 4.17 of the Company SEC DocumentsDisclosure Schedules, (ii) for this Agreement and neither the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plansnor any of its Subsidiaries is, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any loan or credit agreement, note, bond, mortgage, indenture, lease or other binding contract, agreement or commitment (each a “Contract:”):
(i) that is has been or would be required to be filed as a “material contract” (as such term is defined in by the Company pursuant to Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC;
(ii) that establishes or governs a partnership or joint venture or similar arrangement;
(iii) that is an indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other agreement providing for indebtedness of the Company or any of its Subsidiaries in an amount in excess of $1,000,000;
(iv) with a Top Customer or Top Supplier and under which the ten (10) largest customers Company or any of its Subsidiaries has made or received payments in excess of $2,000,000 in the twelve months prior to the date hereof or which is otherwise material to the Company and its Subsidiaries during the fiscal year ended January 31Subsidiaries, 2024 taken as a whole (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase and sale orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesbusiness consistent with past practice);
(iiiv) for the purchase or sale of any entity or assets after the date hereof in excess of $1,000,000 (other than customer or supplier Contracts, including contracts that relate to inventory);
(vi) that is with the ten a collective bargaining agreement;
(10vii) largest vendors of under which the Company and or any of its Subsidiaries during the fiscal year ended January 31has made or received payments in excess of $1,000,000 since July 1, 2024 2012 (as determined based on cost of goods other than purchase and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase sale orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Companybusiness consistent with past practice);
(ivviii) that is a Government Contract;
(v) evidencing a capital expenditure provides for which future payments are required in excess any obligation of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any Subsidiary of the ordinary course Company of business pursuant an amount in excess of $2,000,000 or any other Person of an amount in excess of $1,000,000;
(ix) that is an outstanding power of attorney (other than powers of attorney granted with respect to foreign legal and tax matters or Intellectual Property related filings or which otherwise are not material to the Company and its Subsidiaries, taken as a whole);
(x) that provides for an obligation or liability of the Company or any of its Subsidiaries have material continuing obligations(whether absolute, accrued, contingent or otherwise) as guarantor, surety, co-signer, endorser, co-maker, indemnitor or otherwise in respect of the obligation of any third party that could result in payments in excess of $1,000,000, other than obligations between the Company and any of its Subsidiaries (and between Company Subsidiaries);
(viixi) containing (A) a covenant that restricts or other provision limiting prohibits in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any material line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits in any material respect the ability of Persons to whom the Company can sell products or services;
(xii) that requires the Company or any of its Subsidiaries to sellprovide business, transfer, pledge distribution or otherwise dispose of assets, rights investment opportunities or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material pricing to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive or most favored nation basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves is a material joint venturehedge, profit sharingcollar, partnership option, forward purchasing, option, swap, derivative or similar agreement from which Contract; or
(xiv) that is a Contract between the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during on the fiscal year ended January 31one hand, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or and any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or Company’s stockholders (zin their capacity as such) that subjects on the Company or any of its Subsidiaries to any material ongoing requirements or restrictions other hand. Each such Contract described in clauses (other than ordinary course confidentiality requirements or restrictions);
(xvi)-(xiv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract”. The Company has made available to Parent correct and complete copies of all Material Contracts.”
(b) Except for Material Contracts that breaches, violations or defaults which would not have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, reasonably be expected to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would nothave, individually or in the aggregate, a Company Material Adverse Effect, (i) each of the Material Contracts is valid and binding on the Company and each of its Subsidiaries party thereto and, to the Company’s knowledge as of the date hereof, each other party thereto, enforceable, subject to the Enforceability Exceptions, against the Company and each of its Subsidiaries party thereto in accordance with its terms, and to the Company’s knowledge as of the date hereof each other party thereto, and is in full force and effect and (ii) neither the Company nor any of its Subsidiaries, nor to the Company’s knowledge as of the date hereof any other party to a Material Contract, is in violation of or default under any provision of any Material Contract and no event has occurred that with the lapse of time or the giving of notice or both would constitute a violation of or default thereunder by the Company or any of its Subsidiaries. The Company or such Subsidiary has performed all obligations required to be performed by it under each Material Contract and, to the knowledge of the Company as of the date hereof, each other party to each Material Contract has performed all obligations required to be performed by it under such Material Contract, except in each case as, individually or in the aggregate, would not have or reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Hanesbrands Inc.), Merger Agreement (Maidenform Brands, Inc.)
Material Contracts. (a) Except (i) as for this Agreement, the Contracts filed as exhibits to the Company SEC DocumentsReports, (ii) for this Agreement and the other agreements entered into Contracts listed in connection with Subsections (i) through (xx) of Section 3.16(a) of the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereof, neither the Company nor any Subsidiary none of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside 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 pursuant business) or advance to which (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 its Subsidiaries have material continuing obligationsof more than US$5,000,000;
(v) any Contract (including so called take-or-pay or keep-well agreements) under which any person (other than the Company or any of its Subsidiaries) has directly or indirectly guaranteed Indebtedness of the Company or any of 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) containing any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(Aviii) any Contract for the acquisition, disposition, sale, transfer or lease (including leases in connection with financing transactions) of properties or assets of the Company or any of its Subsidiaries that have a covenant 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 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 provision limiting 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 Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person in any geographic area, 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 as a result of this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any customary employee non-solicitation payment in excess of US$5,000,000 to be made by the Company or no-hire clauses entered into any of its Subsidiaries in any calendar year or (B) the ordinary course value of businessthe outstanding receivables due to the Company and its Subsidiaries 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) “most favored nation”, “exclusivity” or similar provisions, (C) a right pledging of first refusal or right of first offer or similar right that limits the ability share capital of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) issuance of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which guarantee by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Subsidiaries;
(xivxvi) that is any Contract providing for (A) a settlementlicense, conciliation covenant not to s▇▇ or similar Contract (x) with other right granted by any Governmental Authority entered into since February 1, 2021, (y) which would require Third Party under any Intellectual Property to the Company or any of its Subsidiaries Subsidiaries, (B) a license, covenant not to pay consideration of more than $1,000,000 after the date of this Agreement s▇▇ or (z) that subjects other right granted by the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Third Party under any Intellectual Property, (other than ordinary course confidentiality requirements or restrictions);
(xvC) an indemnity of any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or relating to dispositionviolation of any Intellectual Property right, voting or dividends with respect (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any equity securities 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 ordinary course of business;
(xvii) any Contract granting rights in respect of exclusivity, “most favored nation” or similar rights;
(xviii) any Contract between or among the Company or any of its Subsidiaries; or, 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;
(xvixix) is 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 equity interests (each, an affiliate “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 Person 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 under Item 404 if the Form 20-F were filed as of Regulation S-K promulgated under the Exchange Actdate hereof); or
(xxi) any other Contract which, other than any if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract solely among described in clauses (i) to (xxi) and each such Contract that would be a Material Contract if it had not been filed as an exhibit to the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, SEC Reports is referred to herein as a “Material Contract.” ”
(b) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither : (i) 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 Company nor any Subsidiary 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 has, and, to the Knowledge knowledge of the Company, none of the other parties thereto haveno counterparty, violated any provision is or is alleged to be in breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts ; (or failures to activ) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge knowledge of the Company, no person intends to terminate any Material Contract; and (v) neither the Company execution of this Agreement nor the consummation of any Subsidiary of the Company has received written notice of Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the foregoing. To the Knowledge rights of the Company, since February 1, 2021, no counterparty to any Group Company under any Material Contract Contract. The Company has (A) canceled furnished or otherwise terminatedmade available to Parent true and complete copies of all Material Contracts, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 2 contracts
Sources: Merger Agreement (Zhang Ray Ruiping), Agreement and Plan of Merger (eHi Car Services LTD)
Material Contracts. (aExcept pursuant to an acquisition permitted by Section 4.1(d) Except (i) as filed as exhibits or to employment or compensation arrangements with directors and officers, the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of businessshall not, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or shall not permit any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company to, enter into or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant amend or other provision limiting modify in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material manner materially adverse to the Company and its Subsidiaries taken as a whole;
whole (xii) that any contract or agreement (A) described in clause (i) and clause (ii) of the definition of “Company Contract”, (B) containing actual or contingent obligations of the Company or its Subsidiaries secured by a lien (other than Permitted Encumbrances) in excess of $15.0 million (except as otherwise permitted by Section 4.1(l)) (C) pursuant to which the Company or any of its Subsidiaries is a license (or a covenantburdened from continuing indemnification, consent “earn out” or other rights contingent payment obligations that in each case would reasonably be expected to result in payments in excess of $5.0 million (provided, that nothing in this clause (i)(C) shall prohibit entering into customer agreements and supply agreements in the ordinary course of business consistent with past practice) or to use Intellectual Property(D) of Third Party Rights granted to under which the Company or any Subsidiary of the Company (A) on is the landlord, tenant, subtenant or occupant with respect to real property that has an exclusive basisaggregate value, (B) on a non-exclusive basis, if pursuant or involves payment by or to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of more than $1,000,000 during the fiscal year ended January 3125.0 million or (ii) any supply or sales agreement that has an aggregate value, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require involves payment by or to the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement 75.0 million on an annual basis or (z) that subjects has an aggregate value, or involves payment by or to the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other of more than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ $150.0 million for the duration of the agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(aexcept for renewal(s), whether made following reasonable advance notice to Parent, on substantially similar terms of existing contracts or not set forth in Section 4.15(a) replacements of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding existing contracts with new counterparties on the Company or the applicable Subsidiary of the Company, as the case may be, and, substantially similar terms to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectexisting contract being replaced.
Appears in 2 contracts
Sources: Merger Agreement (Hexion Specialty Chemicals, Inc.), Merger Agreement (Huntsman International LLC)
Material Contracts. (a) Except (i) as All Contracts, including amendments thereto, required to be filed as exhibits an exhibit to any report of Central filed pursuant to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Exchange Act of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined type described in Item 601(b)(10) of Regulation S-K under the Exchange Act have been so filed as of the Exchange Actdate hereof, and no such Contract has been amended or modified(or further amended or modified, as applicable) since the date such Contract or amendment was filed.
(b) Other than the Contracts set forth in clause (a) above which were filed in an unredacted form, Section 3.10(b) of the Central Disclosure Letter sets forth a correct and complete list, and Central has made available to East correct and complete copies (including all material amendments, modifications, extensions or renewals with respect thereto), of each of the following Contracts to which Central or any of the Central Subsidiaries is a party or bound as of the date hereof:
(i) each Contract containing any area of mutual interest, joint bidding area, joint acquisition area, or non-compete or similar type of provision that materially restricts the ability of Central or any of the Central Subsidiaries (including East and the East Subsidiaries following the Closing) to (A) compete in any line of business or geographic area or with any Person during any period of time after the Effective Time or (B) 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;
(ii) each Contract that creates, evidences, provides commitments in respect of, secures or guarantees (A) Indebtedness for borrowed money in any amount in excess of $50,000,000 or (B) other Indebtedness of Central or any of the Central Subsidiaries (whether incurred, assumed, guaranteed or secured by any asset) in excess of $50,000,000, other than agreements solely between or among Central and the Central Subsidiaries;
(iii) each Contract for lease of personal property or real property (excluding Oil and Gas Leases) involving annual payments in excess of $25,000,000 or aggregate payments in excess of $50,000,000 that are not terminable without penalty or other liability to Central or any of the Central Subsidiaries (other than any ongoing obligation pursuant to such Contract that is with not caused by any such termination) within sixty (60) days, other than Contracts related to drilling rigs;
(iv) each Contract involving the ten pending acquisition, swap, exchange, sale or other disposition of (10or option to purchase, acquire, swap, exchange, sell or dispose of) largest customers any Oil and Gas Properties of Central and the Company and its Central Subsidiaries during for which the fiscal year ended January 31aggregate consideration (or the fair market value of such consideration, 2024 (as determined based on revenue received from such customers during such time period) (excluding any if non-disclosure agreementscash) payable to or from Central or any Central Subsidiary exceeds $50,000,000, data processing agreements, other than Contracts involving the acquisition or sale of (or option to purchase orders or statements of work or invoices entered into sell) Hydrocarbons in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiv) 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 Central and/or its wholly-owned Subsidiaries and other than any customary joint operating agreements or unit agreements affecting the Oil and Gas Properties of Central or any of the Central Subsidiaries;
(vii) each joint development agreement, exploration agreement, participation, farmout, farm-in or program agreement or similar Contract requiring Central or any of the Central Subsidiaries to make annual expenditures in excess of $25,000,000 or aggregate payments in excess of $60,000,000 (in each case, net to the interest of Central and the Central Subsidiaries) following the date of this Agreement, other than customary joint operating agreements and continuous development obligations under Oil and Gas Leases;
(viii) each agreement that contains any exclusivity, “most favored nation” or most favored customer provision, call or put option, preferential right or rights of first or last offer, negotiation or refusal, to which Central or any of the Central Subsidiaries or any of their respective Affiliates is subject, and, in each case, is material to the business of Central and the Central Subsidiaries, taken as a whole, in each case other than those contained in (A) any agreement in which such provision is solely for the benefit of Central or any of the Central Subsidiaries, (B) customary royalty pricing provisions in Oil and Gas Leases or (C) customary preferential rights in joint operating agreements or unit agreements affecting the business or the Oil and Gas Properties of Central or any of the Central Subsidiaries;
(ix) any acquisition or divestiture Contract that contains “earn out” or other contingent payment obligations, or remaining indemnity or similar obligations (other than (A) asset retirement obligations or plugging and abandonment obligations set forth in the Central 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 $15,000,000 or (2) earn out payments, contingent payments or other similar obligations to a third party, including indemnity payments, in excess of $30,000,000 in the aggregate after the date hereof;
(x) any Contract (other than any other Contract otherwise covered by this Section 3.10(b)) that is with the ten creates future payment obligations (10including settlement agreements or Contracts that require any capital contributions to, or investments in, any Person) largest vendors of Central or any of the Company and its Central Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in outside the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future in each case, involving annual payments are required in excess of $5,000,000;
(vi) relating to the disposition 25,000,000 or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration payments in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
50,000,000 (vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between customary joint operating agreements or unit agreements affecting the Company Oil and Gas Properties of Central or any of its wholly-owned Subsidiaries the Central Subsidiaries), or between creates or among would create an Encumbrance on any wholly-owned Subsidiaries material asset or property of Central or any of the Company);
Central Subsidiaries (ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholePermitted Encumbrances);
(xi) any Contract that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) provides for midstream services to, or the sale by, Central or any of the Central Subsidiaries of Hydrocarbons (1) in excess of 15,000 gross barrels of oil equivalent of Hydrocarbons per day (calculated on an exclusive a per day yearly average basis, ) or (2) for a term greater than or equal to ten (10) years and (B) on has a non-exclusive basis, if pursuant remaining term of greater than ninety (90) days and does not allow Central or the Central Subsidiaries to which terminate it without penalty to Central or the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or Central Subsidiaries within ninety (C90) that is otherwise material to the Company and its Subsidiaries taken as a wholedays;
(xii) any Contract that is provides for a Company Real Property Lease with remaining obligations “take-or-pay” clause or any similar prepayment obligation, minimum volume commitments or capacity reservation fees to a gathering, transportation or other arrangement downstream of the wellhead, or similar arrangements that otherwise guarantee or commit volumes of Hydrocarbons from Central or any Central Subsidiary’s Oil and Gas Properties, which in each case, would reasonably be expected to involve payments (including penalty or deficiency payments) in excess of $1,000,00010,000,000 during the twelve (12)-month period following the date of this Agreement or aggregate penalty or deficiency payments in excess of $20,000,000 during the two (2)-year period following the date of this Agreement;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Labor Agreement;
(xiv) that is a settlement, conciliation or similar any Contract (xother than Oil and Gas Leases) pursuant to which Central or any of the Central Subsidiaries has paid amounts associated with any Governmental Authority entered into since February 1Production Burden in excess of $25,000,000 during the immediately preceding fiscal year or with respect to which Central reasonably expects that it and the Central Subsidiaries will make payments associated with any Production Burden in any of the next three (3) succeeding fiscal years that could, 2021based on current projections, exceed $25,000,000 annually or $50,000,000 in the aggregate;
(yxv) any Contract which would require is between Central or any of the Company Central Subsidiaries, 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 (5%) or more of the shares of Central’s capital stock (or any affiliates of any such Person) on the other hand involving aggregate annual payments in excess of $120,000, other than compensation arrangements with the directors on the Central Board in their capacity as such; or
(xvi) each Contract or Central Organizational Document that would, on or after the Closing Date, prohibit or restrict the ability of the Surviving Corporation or any of its Subsidiaries to declare and pay consideration of more than $1,000,000 after the date of this Agreement dividends or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends distributions with respect to their capital stock, pay any equity securities of Indebtedness for borrowed money, obligations or liabilities from time to time owed to the Company Surviving Corporation or any of its Subsidiaries; or
(xvi) is with an affiliate , make loans or other Person that would be required to be disclosed under Item 404 advances or transfer any of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesproperties or assets.
(c) The Contracts described in the foregoing clauses (a) and (b) Each Contract of the type described above in Section 4.15(a), whether together with all exhibits and schedules to such Contracts, as amended through the date hereof or not set forth as hereafter amended in accordance with Section 4.15(a) of the Company Disclosure Schedule4.2 hereof, is are referred to herein as a “Central Material ContractContracts.” Except for ”
(d) Each Central Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) Contract is valid and binding on the Company Central or the applicable Central Subsidiary of the Companyparty thereto, as the case may be, and, to the Knowledge of the CompanyCentral, each other party thereto, and (B) is in full force and effecteffect in accordance with its terms, except for (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles terminations or expirations at the end of equity and the stated term or (ii) such failures to be valid and binding or to be in full force and effect as would notnot reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Central Material Adverse Effect. , in each case subject to Enforceability Exceptions.
(e) Neither the Company Central nor any Subsidiary of the Company hasCentral Subsidiaries is in breach of, or default under the terms of, and, to the Knowledge of the CompanyCentral, none of the no other parties thereto have, violated party to any provision Central Material Contract is in breach of, or committed default under the terms of, any Central Material Contract, nor is any event of default (or failed similar term) continuing under any Central Material Contract, and, to perform the Knowledge of Central, there does not exist any act underevent, and no condition or omission that would constitute such a default, breach or event of default (or condition exists, which similar term) (with or without notice, whether by lapse of time or notice or both) would constitute a breach of or default under, the provisions of under any Central Material Contract, except in each case for those violationswhere such breach, acts default or event of default (or failures similar term) would reasonably be expected to act) and defaults whichhave, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Central Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (WPX Energy, Inc.), Merger Agreement (Devon Energy Corp/De)
Material Contracts. (a) Except (i) as for this Agreement and the Contracts filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection Reports filed with the transactions contemplated hereby and (iii) for Company Employee Plans, as of SEC prior to the date hereofof this Agreement, neither the Company nor any Subsidiary of the no Group Company is a party to to, and no Group Company’s properties or is assets are bound by by, any Contract:of the types of Contracts listed in clauses (i) through (xi) of this Section 3.15(a) (such types of Contracts being the “Material Contracts”):
(i) each Contract that is a “material contract” (as such term is defined in would be required to be filed by the Company pursuant to Item 601(b)(10) of Regulation S-K 4 of the Exchange Act)Instructions to Exhibits to the Company’s most recently filed annual report on Form 20-F;
(ii) that is with the ten (10) largest customers each Contract relating to any Indebtedness or Lien in excess of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)RMB30 million;
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into each Contract in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition respect of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant joint venture, strategic cooperation or other provision limiting in any material respect the ability of the Company collaboration arrangement, joint sales or any Subsidiary of the Company to compete marketing agreement, or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiariespartnership arrangement, in each case, that is material to the business of the Group Companies taken as a whole, or (B) other agreement involving a sharing of profits, losses, costs or liabilities by any Group Company and that is material to the business of the Group Companies taken as a whole;
(iv) each Contract that involves the acquisition or disposition, directly or indirectly (by merger, license or otherwise), of any securities of any person (other than a Company Share Award) or any assets that have a fair market value or purchase price of more than RMB30 million;
(v) each Contract with a Governmental Authority in excess of RMB30 million;
(vi) each Contract with a Major Customer or Major Supplier in excess of RMB30 million;
(vii) each Contract with a sales representative or distributor with expected aggregate annual payments by or to the Company or any of its SubsidiariesSubsidiaries in excess of RMB30 million;
(viii) each Contract (including any distribution agreements) that limits, or purports to limit, the ability of any Group Company to compete in any line of business in any geographic area or during any period of time in a manner that is material to the Group Companies, taken as a whole, or any Contract that grants any exclusive rights to any third party (including any exclusive license or exclusive distribution or usage arrangements) if such Contract, exclusive rights or restrictions resulting therefrom are material to the Group Companies, taken as a whole;
(viiiix) each Contract in excess of RMB1,000,000 between any Group Company, on the one hand, and any directors or officers of any Group Company or their immediate family members or shareholders (other than the Chairman Parties) of any Group Company holding more than 5% of the voting securities of any Group Company, on the other hand, under which there are material rights or obligations outstanding;
(x) each Contract providing for any earn-out or similar payment payable by any Group Company to any person (other than to another Group Company) in excess of RMB4 million;
(xi) each Contract involving payments by the Company or any of its Subsidiaries in excess of RMB30 million in the aggregate under each Contract;
(xii) each Contract relating to any capital expenditure or evidencing indebtedness for borrowed money, debt securities, warrants any disbursement Contract with a contract value exceeding RMB30 million;
(xiii) each share or stock redemption or purchase or other rights Contract affecting or relating to acquire any debt securities, the share capital of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries Subsidiaries, including each Contract with any shareholder of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholewhich includes anti-dilution rights, voting arrangements or operating covenants;
(xixiv) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from each Contract under which the Company or any of its Subsidiaries recognized revenues in excess has granted any Person any registration rights, or any right of $1,000,000 during first refusal, first offer or first negotiation with respect to any Ordinary Shares or securities of any Subsidiaries of the fiscal year ended January 31, 2024;Company; and
(xivxv) each Contract that is contains a settlementput, conciliation call or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) right pursuant to which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would could be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether purchase or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Companysell, as the case may beapplicable, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of any equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions interests of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectPerson.
Appears in 2 contracts
Sources: Merger Agreement (Chuanwei Zhang), Merger Agreement (China Ming Yang Wind Power Group LTD)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement, the Confidentiality Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that which is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC) to the Company;
(ii) that is with which constitutes a contract or commitment relating to indebtedness for borrowed money or the ten deferred purchase price of property (10in either case, whether incurred, assumed, guaranteed or secured by any asset) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(viiii) relating which purports to the disposition limit or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting restrict in any material respect (A) the ability of the Company or any Subsidiary of its Subsidiaries to solicit customers or (B) the Company to compete or engage manner in any which, the line of business in which or to compete with the localities in which, all or any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability portion of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation business of the Company and its Subsidiaries, in each caseincluding, that is material to following consummation of the Company transactions contemplated by this Agreement, Parent and its Subsidiaries, taken as a wholecompetes or would compete;
(viiiiv) relating to which would prohibit or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, materially delay the consummation of the Company Offer, the Merger or any Subsidiary of the Company, other transactions contemplated hereby or any guarantee by otherwise materially impair the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary ability of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and perform its Subsidiaries taken as a wholeobligations hereunder;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (yv) which would require the Company or any of its Subsidiaries to pay consideration purchase or procure goods and/or services of more than $1,000,000 after 10,000,000 over the date remaining term of this Agreement such contract (“Supplier Long-Term Agreements”) or that is an agreement for the sale of goods to the Company’s top ten customers based on revenue for the twelve-month period ending on the Balance Sheet Date (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions“Customer Long-Term Agreements”);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Precision Castparts Corp), Merger Agreement (Titanium Metals Corp)
Material Contracts. (a) Except Other than (i) as filed as exhibits to the Company SEC DocumentsReal Property Leases, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and Company Plans, (iii) for Company Employee PlansContracts listed on Schedule 4.16(a) and 4.16(b) and (iv) Intellectual Property Licenses, Schedule 4.11(a) lists, as of the date hereof, neither all of the Company nor any Subsidiary of following executory contracts to which the Company is a party or by which its assets are bound (the "Material Contracts"):
(1) individual Contracts with customers with respect to which the Company billed more than $100,000 during 1999;
(2) any individual Contract which is an exclusive dealing, requirements or take or pay agreement involving expenditures in excess of $50,000 during 1998;
(3) Contracts not listed or required to be listed pursuant to Section 4.11(a)(2) which provide for aggregate future annual payments by the Company of more than $100,000, except for purchase orders or sales orders arising in the ordinary and usual course of business, in which case they are listed only if any party thereto is bound obligated to make payments pursuant thereto aggregating more than $200,000;
(4) Contracts which establish a partnership, joint venture, material agency or other similar arrangement;
(5) any Contract which relates to indebtedness for borrowed money in excess of $50,000 or the deferred purchase price of property (whether incurred, assumed, guaranteed or secured by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Actasset);
(ii6) any Contract which provides for future payments that is with the ten (10) largest customers are conditioned on or result from, in whole or in part, a change of control of the Company or a change of management of the Company;
(7) any Contract which relates to marketing, sales or advertising and its Subsidiaries during provides for aggregate future payments of more than $100,000;
(8) any Contract under which the fiscal year ended January 31Company has guaranteed the obligations of any Person, 2024 agreed to indemnify any Person (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business), and other similar Contracts that are ancillary or agreed to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)share Tax liability with any Person;
(iii9) that is with any Contract which relates to the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors acquisition by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all of the capital stock or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsanother Person;
(vii10) containing (A) a covenant or other provision limiting in any material respect Contract which restricts the ability of the Company or any Subsidiary right of the Company to compete or engage in any line of business or to compete way with any other Person, or which contains covenants pursuant to which any non-natural Person has agreed not to compete, or otherwise restricts a non-natural Person's ability to engage freely, in any geographic area, part of the Company Business;
(11) any Contract not disclosed herein or not otherwise required to be disclosed pursuant to this Schedule 4.11 which provides for annual payments in excess of $100,000 which extends more than a year from the date hereof and is not cancelable by the Company on 30 days' written notice without penalty;
(12) any Contract which provides for the sale or lease after the date hereof of any of the assets of the Company other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, ; and
(B13) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of any Contract which binds the Company to make payments to any director or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary former director of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Purchase Agreement (Insilco Holding Co), Purchase Agreement (Insilco Corp/De/)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Schedule 5.14 sets forth a correct list as of the date hereof, neither hereof of all of the Company nor Contracts of the following types to which any Subsidiary of the Company Entities is a party to or by which any of the Company Entities or their respective properties or assets is bound by any Contractor receives a benefit under:
(ia) that is all Contracts providing for a “merger, consolidation, acquisition or sale of all or a material contract” (to the Company Entities, taken as such term is defined in Item 601(b)(10a whole) of Regulation S-K portion of the Exchange Actassets of, or other extraordinary transaction in respect of, any Company Entity with or to any other Person, or any material capital investment in any Person, in each case entered into since January 1, 2017 or pursuant to which any Company Entity has any ongoing indemnification or other similar surviving obligations;
(b) any Contract (other than purchase orders or sales orders) entered into with a customer or supplier which involves the payment or receipt of an amount in excess of Five Million Dollars ($5,000,000) per annum (measured by the trailing (12) month period ending on the Interim Balance Sheet Date) and which cannot be terminated within ninety (90) days;
(c) for the purchase of materials, supplies, goods, services, equipment or other assets, which is with a Material Supplier (other than purchase orders);
(iid) that for the sale or license by a Company Entity of materials, supplies, goods, services, equipment or other assets, which is with the ten a Material Customer (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesthan sales orders);
(iiie) that is with the ten (101) largest vendors requires a Company Entity to purchase its total requirements of the Company and its Subsidiaries during the fiscal year ended January 31any product or service from a third party or that contains “take or pay” provisions, 2024 (as determined based on cost of goods and services paid 2) contains a “most-favored-nation” clause or similar term that provides preferential pricing or treatment to such vendors by the Company during such time periodany third party, (3) (excluding contains any non-disclosure agreements, data processing agreements, purchase orders competition or statements non-solicitation covenant by a Company Entity in favor of work another Person or invoices entered into in otherwise limits the ordinary course freedom of business, and other similar Contracts that are ancillary a Company Entity to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business in any area or to compete with (4) grants any Person in any geographic areaan option or a first refusal, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar preferential right to purchase or acquire any assets of any Company Entity;
(f) that limits is with a Governmental Authority;
(g) that is between a Company Entity, on the ability one hand, and any Related Party or EIS, on the other hand (each, an “Affiliate Agreement”);
(h) any credit agreement, loan agreement or indenture relating to Indebtedness of a Company Entity;
(i) any Contract under which the Company Entities have permitted any material asset to become encumbered by a Lien (other than a Permitted Lien);
(j) that provides for, directly or indirectly, the establishment or operation or a partnership or joint venture, or otherwise involves a sharing of profits, losses, costs or liabilities with any Person;
(k) pursuant to which a Company Entity effected any compromise or settlement of any Proceeding since the Interim Balance Sheet Date;
(l) the primary purposes of which is the indemnification of any other Person by a Company Entity;
(m) that provides for a retention, severance, change in control or sale bonus payment in excess of One Hundred Thousand Dollars ($100,000) (or would provide for such bonus subject to the satisfaction of any conditions or contingencies) and any Company Retention Bonus Agreements;
(n) (A) that is a written Contract for the employment of any Employee located outside of the Company United States (i) with annual base salary and target annual cash bonus in excess of $150,000; (ii) that is not terminable at will or any upon notice of its Subsidiaries sixty (60) days or less for a cost (exclusive of costs arising prior to sell, transfer, pledge or otherwise dispose termination) of assets, rights or properties less than $200,000; or (Diii) that would result in any payments to such person upon consummation or solely as a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation result of the Merger; (B) that is a written Contract for the employment of any Employee located in the United States (x) with an annual base salary in excess of $150,000; (y) that is not terminable at will; or (z) that would result in any payments to such individual upon the consummation or as a result of the Merger (either alone or in combination with another event);
(o) any Contract providing for a license to a Company and its SubsidiariesEntity of Company Licensed Intellectual Property (other than licenses of commercially available Software licensed under a click-wrap or shrink-wrap license or subscription agreement, in each case, that is material to on a non-exclusive basis and having an annual license, subscription or maintenance fee of $250,000 or less in the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyaggregate);
(ixp) any hedging, swap, derivativelease or agreement under which a Company Entity is lessee of, or similar Contractholds or operates any personal property owned by any other party, for which the annual rent exceeds $250,000;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (Bq) pursuant to which a Company Entity has made or may make a capital investment in, loan to, acquisition or divestiture of the Equity Interests or assets of, any Person, or the acquisition or divestiture of any business or third Person; and
(r) any Contract providing for a license by a Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess Entity of $1,000,000, Company Owned Intellectual Property to a third party (other than non-exclusive licenses granted to a Company Entity’s, resellers and end-user customers in connection with the sale, distribution or use of a Company Entity’s products and services in the ordinary course of business). The Company has provided to Purchaser a true and complete copy (or, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities oral Contract, a written summary of the Company material terms and conditions of such oral Contract) of each Contract set forth or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(aon Schedule 5.14 (including all amendments, modifications, exhibits and schedules) of (collectively with the Company Disclosure ScheduleReal Property Leases, is referred to herein as a the “Material Contract.” Except for Contracts”). Each Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) Contract is in full force and effecteffect and constitutes a legal, except (i) as may be limited by bankruptcyvalid, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles binding obligation of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Entity, and to the Company’s Knowledge, the other party or parties thereto, enforceable against such Company Entity, and to the Company’s Knowledge, such other party or parties in accordance with its terms, subject to the Enforceability Limitations. The Company Entities have performed or complied with all material covenants and obligations under each Material Adverse Effect. Neither Contract, and neither the Company nor any Subsidiary of the Company has, andEntities nor, to the Knowledge of the Company’s Knowledge, none of the any other parties thereto have, violated any provision ofparty to a Material Contract is in, or committed is alleged to be in, material breach of or failed to perform any act underdefault under such Material Contract, and no nor has there occurred an event or condition exists, which (that with or without notice, lapse the passage of time or giving of notice (or both) would constitute such a material breach of or default underby a Company Entity or to the Company’s Knowledge, the provisions of any other party to such Material Contract, except in each case for those violations, acts (or failures . No party to act) and defaults which, individually or in the aggregate, would not reasonably be expected a Material Contract has provided notice to have a Company Material Adverse Effect and, as of February 1, 2021, Entity that it plans to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to terminate any Material Contract has (A) canceled or otherwise terminatedor, or threatened if in writing (or to cancel or otherwise to terminatethe Company’s Knowledge, oral), materially reduce its relationship business with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEntities.
Appears in 2 contracts
Sources: Merger Agreement (Zurn Water Solutions Corp), Merger Agreement (Zurn Water Solutions Corp)
Material Contracts. (a) Except (iSchedule 5.13(a) as filed as exhibits sets forth all of the following Contracts to which the Company SEC Documents, (ii) for this Agreement and or any of the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Subsidiaries is a party or by which any of them is bound as of the date of this Agreement (collectively and together with any Contracts entered into prior to the Closing in accordance with Section 8.2(b)(xiv) hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:“Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) Contracts with any Seller or any current officer, director or other Affiliate of Regulation S-K any Seller, the Company or any of the Exchange Act)Subsidiaries or any family member of any such Person;
(ii) that is Contracts with the ten (10) largest customers any labor union or association representing any employee of the Company or any of the Subsidiaries and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders written employment or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)severance agreement;
(iii) that is with Contracts for the ten (10) largest vendors sale of any material Assets of the Company and its or any of the Subsidiaries during (other than the fiscal year ended January 31, 2024 (as determined based on cost sale of finished goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into inventory in the ordinary course Ordinary Course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the CompanyBusiness);
(iv) that is a Government ContractContracts relating to any acquisition to be made by the Company or any of the Subsidiaries of any operating business or the capital stock of any other Person (or all or any material portion of the Assets of any business, business unit, facility or Person);
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) Contracts relating to the disposition incurrence of Indebtedness or acquisition the making of any business, equity, or all or substantially all of the assets of loans to any other Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of Subsidiaries;
(vi) Contracts which the ordinary course of business pursuant Company reasonably anticipates will involve the expenditure by or to which the Company or its Subsidiaries have material continuing obligationsof more than $250,000 in the aggregate or require performance by any party more than one year from the date hereof;
(vii) containing (A) any sale and leaseback agreement covering a covenant or other provision limiting in any material respect the ability of the Company Asset or any Subsidiary Contract governing any business arrangement of this nature involving a material Asset;
(viii) any Contract containing covenants limiting the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability freedom of the Company or any of its Subsidiaries to sell, transfer, pledge engage in any line of business or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire compete with any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Person;
(ix) any hedgingmaterial distribution, swapfranchise, derivativelicense, sales, commission, consulting agency or similar Contractadvertising Contract which (A) involves annual payments, in excess of $50,000 or (B) is not cancelable on thirty (30) calendar days’ notice without payment or penalty;
(x) any licensing agreement or other Contract relating to Intellectual Property Rights that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary operation of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities business of the Company or any of its Subsidiaries as conducted as of the date of this Agreement;
(xi) any joint venture Contract, partnership agreement, limited liability company agreement or relating to dispositionother Contract (however named) involving a sharing of profits, voting losses, costs, or dividends liabilities by the Company or any of its Subsidiaries with any other Person;
(xii) any Contract providing for capital expenditures after the date hereof in an amount in excess of $100,000 individually or in the aggregate;
(xiii) any material written warranty, guaranty or other similar undertaking with respect to contractual performance extended by the Company or any equity securities of its Subsidiaries other than in the Ordinary Course of Business;
(xiv) any Contract with “take or pay” provisions, or “requirements” provisions committing a Person to provide the quantity of goods or services required by another Person which the Company reasonably anticipates will involve aggregate payments by or to the Company or any of its Subsidiaries of more than $500,000;
(xv) any Contract with any foreign sales agents;
(xvi) any Contract with a customer of the Company or any of its SubsidiariesSubsidiaries that provides for pay-on-scan payment terms; orand
(xvixvii) is with any material agency agreement including without limitation material export agency agreements. In addition to the Contracts described in clauses (i) – (xvii) above, the defined term “Material Contract” shall also include all unfulfilled purchase orders (or any series of related purchase orders) involving the purchase or sale of products or services by the Company having an affiliate aggregate value equal to or other Person that would greater than $500,000, which purchase orders shall not be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesdescribed or listed in Schedule 5.13(a).
(b) Each Contract of the type described above in Section 4.15(aExcept as set forth on Schedule 5.13(b), whether neither the Company nor any Subsidiary is in material breach or not set forth in Section 4.15(a) violation of, or default under, any Material Contract, nor has the Company or any Subsidiary received any written notice of, nor does the Company have any Knowledge of, any default or event that with notice or lapse of time, or both, would constitute a default by the Company and the Subsidiaries under any Material Contract, nor, to the Knowledge of the Company Disclosure Scheduleor the Sellers, is referred any other party to herein as a “any Material Contract in breach of or default thereunder (other than in the case of purchase orders issued to the Company for the failure by any third party to pay any amount due and owing thereunder). No party to any of the Material Contracts has exercised any termination rights with respect thereto, and no party has given written notice of any material dispute with respect to any Material Contract.” Except for Material Contracts that have expired or terminated by their terms. The Company has made available to Purchaser true, correct and complete copies of all of the Material Contracts are Contracts, together with all amendments, modifications or supplements thereto. Except as set forth in Schedule 5.13(b), each Material Contract is in full force and effect (Aand will remain in full force and effect upon consummation of the transactions contemplated by this Agreement) and (i) is a valid and binding on agreement of the Company or the applicable Subsidiary of the Companywhich is a party thereto, as the case may be, and, enforceable against such Company or Subsidiary in accordance with its terms and (ii) to the Knowledge of the Company, is a valid agreement of each other party thereto, and (B) enforceable against such party in full force and effectaccordance with its terms, except (i) as in each case where enforceability may be limited by bankruptcy, insolvency, moratorium and insolvency or other similar Applicable Law laws affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, except where enforceability is subject to the Knowledge application of the Companyequitable principles or remedies. Except as specifically noted in Schedule 5.13(b), none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions consent of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty party to any Material Contract has (A) canceled or otherwise terminated, or threatened is required in writing to cancel or otherwise to terminate, its relationship connection with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materiallyexecution, the amount delivery and performance of business that any such counterparty presently engages in or presently conducts with this Agreement by the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectthe Sellers or the consummation of the transactions contemplated by this Agreement.
Appears in 2 contracts
Sources: Stock Purchase Agreement (UCI Holdco, Inc.), Stock Purchase Agreement (United Components Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) except for any Company Real Property Leases, Company Employee PlansBenefit Plans and insurance policies or contracts pursuant to which any Group Company ceded or assumed insurance or reinsurance, as of the date hereofOriginal Agreement Date, neither the Company nor any Subsidiary of the no Group Company is a party to or is bound by any Contractany:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)agreements with Governmental Entities;
(ii) agreements that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders limit or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary purport to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect limit the ability of the Company or any Subsidiary of the Group Company to compete or engage in any line of business or to compete with any other Person or in any geographic areaarea or during any period of time;
(iii) joint venture, partnership, strategic alliance and business acquisition or divestiture agreements;
(iv) agreements to which an Affiliate of any Group Company is a party (other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the agreements solely among one Group Company and its Subsidiariesone or more other Group Companies);
(v) agreements relating to issuances of securities of any Group Company;
(vi) agreements or indentures relating to Indebtedness or undrawn letters of credit;
(vii) leases or agreements under which any Group Company is the lessee of or holds or operates any tangible property, in each caseowned by any other Person, that is material to except for any lease or agreement under which the Company and its Subsidiaries, taken as a wholeaggregate annual rental payments do not exceed $500,000;
(viii) relating leases or agreements under which any Group Company is the lessor of or permits any third party to hold or evidencing indebtedness operate any tangible property, owned or controlled by the Company, except for borrowed money, debt securities, warrants any lease or other rights agreement under which the aggregate annual rental payments do not exceed $500,000;
(ix) contracts that relates to acquire any debt securities, material disposition or acquisition of the Company assets or properties by any Subsidiary of the Group Company, or any merger, amalgamation or business combination with respect to any Group Company;
(x) material agreements containing most favored nations or most favored customer provisions or non-competition or non-solicitation covenants (other than employee non-competition and non-solicitation covenants);
(xi) contracts that provide for the guarantee by the Company or of its Subsidiaries of the obligations any liability of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the other than a Group Company);
(ixxii) any hedgingother contracts that involves the expenditure, swap, derivative, payment or similar Contract;
(x) that receipt of more than $500,000 in the aggregate and is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted not terminable by the Company without penalty on notice of 90 days or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000less;
(xiii) that involves a any material joint venture, profit sharing, partnership capital maintenance or similar agreement from agreements pursuant to which the any Group Company has agreed to contribute capital or surplus to any other Group Company or to any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;third party under specified circumstances and/or maintain such Group Company or third party’s capital or surplus at specified levels; and
(xiv) contracts that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries grant binding authority to any material ongoing requirements or restrictions insurance agent of a Group Company (other than ordinary course confidentiality requirements or restrictionscollectively, with subsections (i) through (xiii);
(xv) any stockholders’ agreement, proxyand together with Company Real Property Leases, voting trust agreement or registration rights agreement or similar agreementsCompany Employee Benefit Plans, arrangements or commitments relating to any equity securities of Group Company IP Agreements, Company Reinsurance Agreements and Company Agent Contracts, the “Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesMaterial Contracts”).
(b) The Company has provided to Parent correct and complete copies of all Company Material Contracts, including any amendments thereto. Each Company Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Group Company, as the case may be, in full force and effect and enforceable in accordance with its terms against such Group Company and, to the Knowledge knowledge of the Company, each other party thereto, and thereto (B) in full force and effect, except (i) as may be limited by subject to applicable bankruptcy, insolvency, reorganization, moratorium and or other similar Applicable Law Laws affecting generally the enforcement of creditors’ rights generally and by subject to general principles of equity and equity). During the past two (ii2) as would notyears, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Group Company has received written notice of any event or condition that constitutes, or, after notice or lapse of the foregoingtime or both, will constitute, any default under or any cancellation of any Company Material Contract, except for defaults that have not been or reasonably would not be expected to be material to any Group Company party to such Company Material Contract. To the Knowledge knowledge of the Company, since February 1there are no events or conditions which constitute, 2021or, after notice or lapse of time or both, will constitute, a default on the part of any party under any Company Material Contract or result in the termination of, or cause or permit the acceleration or other modification of any right or obligation or the loss of any benefit thereunder, and no Group Company or, to the knowledge of the Company, any third party has violated any provision of, or failed to perform any obligation required under the provisions of any Company Material Contract, except for defaults, violations or failures that have not been or reasonably would not be expected to be material to any Group Company party to such Company Material Contract. No Group Company that is party to any Company Material Contract and, to the knowledge of the Company, no counterparty to under any Company Material Contract has (A) canceled is insolvent or the subject of a rehabilitation, liquidation, conservatorship, receivership, bankruptcy or similar proceeding. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereunder shall constitute a default under, give rise to cancellation rights under, or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with adversely affect any of the material rights of any Group Company or under any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Agreement and Plan of Amalgamation, Agreement and Plan of Amalgamation (Enstar Group LTD)
Material Contracts. (a) Except for Contracts set forth in Section 3.11(a) of the Holdings Disclosure Schedule (i) as filed as exhibits collectively, the "Material Contracts"), neither Holdings (with respect to the Company SEC Documents, (iiBusiness) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Transferred Company is a party to or is bound by any Contractby:
(i) any Contract that is provides for payment to a “material contract” (as such term is defined Transferred Company for the performance of services in Item 601(b)(10) an amount in excess of Regulation S-K of the Exchange Act)$1,000,000 annually;
(ii) that is with any Contract to be performed relating to capital expenditures (other than those provided for in the ten (10) largest customers Capital Expenditure Plans of the Company and its Subsidiaries during Business for 1999) in excess of $500,000 in any calendar year, or in the fiscal year ended January 31aggregate require expenditures in excess of $2,000,000;
(iii) any Contract not entered into the ordinary course of business, 2024 requiring payments by or to the Transferred Companies in excess of $1,000,000;
(as determined based on revenue received from such customers during such time periodiv) any Contract which contains restrictions with respect to payment of dividends or any other distribution in respect of the capital stock of a Transferred Company;
(v) any Contract relating to indebtedness for borrowed money in an amount in excess of $1,000,000 (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into trade payables in the ordinary course of business, intercompany indebtedness and leases for telephones, copy machines, facsimile machines and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesoffice equipment);
(iiivi) that is with the ten any lease (10or sublease) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors Real Property requiring payments by the Company during such time periodTransferred Companies in an amount in excess of $1,000,000 annually;
(vii) any loan or advance to (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than advances to employees in the ordinary course of businessbusiness in amounts not exceeding $1,000,000 in the aggregate), or investment in (other than investments in any Transferred Company), any Person, or any Contract relating to the making of any such loan, advance or investment;
(viii) any guarantee in respect of any indebtedness or obligation of any Person in an amount in excess of $1,000,000 (other than in the ordinary course of business and other similar Contracts that are ancillary than with respect to Contracts pursuant to which cost any indebtedness or obligation of goods and services is paid or payable by the any Transferred Company);
(ivix) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect Contract limiting the ability of the Company or any Subsidiary of the Transferred Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractPerson;
(x) that is a license (any material amendment, modification or a covenant, consent or other rights supplement in or to use Intellectual Property) granted by the Company or respect of any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesforegoing.
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a3.12(b) of the Company Holdings Disclosure Schedule, : (i) there is referred to herein as a “no pending default under or breach of any Material Contract.” Except for Material Contracts that have expired Contract by Holdings or terminated by their terms, all of the Material Contracts are (A) valid and binding on the any Transferred Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition existshas occurred that, which (with or without notice, the lapse of time or the giving of notice or both) , would constitute a default thereunder by Holdings or any Transferred Company party thereto, in any such case in which such default, breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults whichevent, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEffect on the Business; and (ii) no party to any such Material Contract has given written notice to Holdings or any Transferred Company of, or made a written claim against Holdings or any Transferred Company with respect to, any breach or default thereunder, in any such case, in which such breach or default, individually or in the aggregate, would have a Material Adverse Effect on the Business.
Appears in 2 contracts
Sources: Agreement and Plan of Merger and Reorganization (Fah Co Inc), Merger Agreement (Avis Rent a Car Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is and its Subsidiaries are not a party to or is bound by any Contract:
(i) that is would be required to be filed by the Company as a “material contract” (as such term is defined in contract pursuant to Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC;
(ii) that is or creates a Partnership with the ten (10) largest customers of 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, guarantee of, note, mortgage or other agreement providing for indebtedness (including obligations under any capitalized leases) in excess of $1,500,000 (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 during guarantees any such indebtedness of any other Person (other than the fiscal year ended January 31Company or another wholly owned Subsidiary), 2024 (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 determined based on revenue received from such customers during such time perioda whole, or (D) (excluding any non-disclosure agreementsis an interest rate derivative, data processing agreements, purchase orders currency derivative or statements of work or invoices other hedging contract other than foreign currency cash flow ▇▇▇▇▇▇ entered into in the ordinary course of business, business and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (classified as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)cash flow ▇▇▇▇▇▇ for accounting purposes;
(iv) that is a Government ContractContract (other than this Agreement) for the acquisition of any corporation, partnership or limited liability company or business, or sale of any of its Subsidiaries or businesses after the date hereof, in each case with a fair market value or purchase price (including assumption of debt) in excess of $5,000,000 (other than (x) in the ordinary course of business or (y) intercompany agreements);
(v) evidencing that is a capital expenditure Contract (including any Contract providing for the outsourcing, contract manufacturing, testing, assembly or fabrication (as applicable of any products, technology or services of the Company or any of its Subsidiaries)) under which future the Company and its Subsidiaries have made or received payments are required in excess of $5,000,0001,000,000 in the fiscal year ended December 28, 2013, the fiscal year ended December 27, 2014, or the two quarter period ended June 27, 2015;
(vi) relating 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 disposition or acquisition of any business, equity, or all or substantially all Company Products (A) with a third party that is one of the assets of any Person for aggregate consideration Company’s top twenty (20) customers by revenue in fiscal year 2014 or 2015 or (B) under which the Company and its Subsidiaries have made or received payments in excess of $5,000,000 1,000,000 in the fiscal year ended December 28, 2013, the fiscal year ended December 27, 2014, or the two quarter period ended June 27, 2015;
(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 outside 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 $5,000,000 (other than any Contract that provides solely for the acquisition of inventory, raw materials or equipment in the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationscourse);
(viiviii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) that contains a right of first refusal refusal, first offer, or right of first offer negotiation, or similar right that limits the ability of the Company a call or put right, with respect to any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, asset that is material to the Company and its Subsidiaries, taken as a whole;
(viiiix) relating to that prohibits or evidencing indebtedness for borrowed money, debt securities, warrants restricts the payment of dividends or other rights to acquire any debt securities, of the Company or any Subsidiary distributions in respect of the Company, ’s shares or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contractcapital stock;
(x) that is a license (purchase or a covenant, consent sale agreement with any Significant Customer or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to Significant Supplier under which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholehave made or received payments in excess of $1,000,000 in the fiscal year ended December 28, 2013, the fiscal year ended December 27, 2014, or the two quarter period ended June 27, 2015;
(xi) that is a license under which (or a covenant, consent or A) any person (other rights in or to use Intellectual Property) of Third Party Rights granted to than the Company or any Subsidiary of the Company (Aits wholly owned Subsidiaries) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which is guaranteeing any liabilities or obligations of the Company or any Subsidiary made payments during the fiscal year ended January 31of its Subsidiaries, 2024 in excess of $1,000,000, and/or or (CB) that is otherwise material to the Company and or any of its Subsidiaries taken as a wholehas “take-or-pay” obligations;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which between the Company or any of its Subsidiaries, on the one hand, and any of the Company’s or its Subsidiaries’ respective directors or officers or stockholders who own five percent (5%) or more of the Company Common Stock, other than (A) any Benefit Plan or any other employee agreements or arrangements, (B) transactions conducted on an arms’ length basis or (C) any agreements with consideration of less than $200,000;
(xiii) providing for the creation or imposition of any Lien, other than a Permitted Lien, with respect to any assets (including Intellectual Property or other intangible assets) material to the conduct of the business of the Company and its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31as currently conducted, 2024taken as a whole;
(xiv) that is a settlement, conciliation or similar Contract agreement (x) with any Governmental Authority entered into since February 1Entity which (A) materially restricts or imposes material obligations upon the Company or its Subsidiaries, 2021or (B) materially disrupts the business of the Company and its Subsidiaries as currently conducted, or (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 2,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Agreement; or
(xv) with any stockholders’ agreementGovernmental Entity, proxyor for the purpose of fulfilling a Contract or order from any Governmental Entity as the ultimate customer, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating that is material to any equity securities the conduct of the Company or any business of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
Subsidiaries as currently conducted, taken as a whole. Each such Contract described in clauses (bi)-(xv) Each Contract of the type described above in or Section 4.15(a4.8(c), whether or not set forth in Section 4.15(a) of the together with each material Company Disclosure ScheduleLicense-In Agreement, is referred to herein as a “Material Contract”.”
(b) Except for as would not reasonably be expected to have, individually or in the aggregate, a Company Material Contracts that have expired or terminated by their termsAdverse Effect, all of the (i) each Material Contracts are (A) valid and binding on Contract is enforceable against the Company or the applicable Subsidiary of the Company, as the case may be, in accordance with its terms and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity effect and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of or its Subsidiaries, on the Company hasone hand, and, to the Knowledge of the Company, none of the each other parties thereto have, violated any provision of, or committed or failed party to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any each Material Contract, except in each case for those violationson the other hand, acts (or failures have performed all obligations required to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company performed by it under such Material Adverse Effect Contract and, as of February 1, 2021, to the Knowledge of the Company, neither 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.
(c) As of the date of this Agreement, the Company nor is not a party to or bound by any Subsidiary Contract that (i) contains any provisions materially restricting the right of the Company has received written notice or any of its Subsidiaries (A) to compete or transact in any business or with any Person or in any geographic area, or (B) to acquire any material product or other 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 and relates (or would reasonably be expected to relate) to payments in excess of $1,000,000 in any of fiscal years 2014, 2015 or 2016.
(d) (x) There are no licenses granted to third parties under any of the foregoing. To Contracts set forth in Section 4.8(d)(i), Section 4.8(d)(ii) or Section 4.8(d)(iii) of the Company Disclosure Schedule (collectively, the “Specified Contracts”), and (y) to the Knowledge of the Company, since February 1there are no other Contracts to which the Company or its Subsidiaries is a party, 2021in the case of clause (x) or (y), no counterparty to that would, as a result of the change of control of the Company contemplated by this Agreement, the Closing or the fact of Parent or any Material Contract has of its Affiliates (Aother than the Company or its Subsidiaries) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with becoming an Affiliate of the Company or any Subsidiary of its Subsidiaries, grant to any third party a license or right to a license with respect to Parent’s or its Affiliates’ (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with excluding the Company and its Subsidiaries other thanSubsidiaries) Intellectual Property following the Closing, in each case, case except as would not reasonably be expected to have a Material Adverse Effectmaterially adversely impact Parent and its Affiliates’ (excluding the Company and its Subsidiaries) business.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (PMC Sierra Inc), Merger Agreement (PMC Sierra Inc)
Material Contracts. (a) Except (i) as filed as exhibits to Section 6.1(A)(t)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Allergan Disclosure Schedule sets forth a list as of the date hereof, neither the Company nor any Subsidiary of this Agreement of each of the Company is a party to or is bound by following Contracts (other than any Contract:
(iAllergan Benefit Plan) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Allergan or any of its Subsidiaries outside is a party or by which it is bound (each such Contract required to be so listed, and each of the ordinary course following types of business Contracts (other than any Allergan Benefit Plan) described below to which Allergan or any of its Subsidiaries becomes a party or by which it otherwise becomes bound after the date of this Agreement, an “Allergan Material Contract”):
(A) each (i) acquisition or divestiture Contract (including any Contracts pursuant to which any member of the Company Allergan Group has transferred or its Subsidiaries have material continuing obligations;
agreed to transfer ownership of any Intellectual Property) and (viiii) containing license (Aincluding any in-license or out-license and any sublicense), collaboration agreement or similar or equivalent Contract, that, in the case of each of clauses (i) and (ii), (x) has a covenant maximum potential value (or which otherwise requires the receipt or making of payments) in excess of $100 million (including pursuant to any “earn-out,” contingent value rights, milestone payments, license fees, royalty payments, development costs or other provision limiting in any material respect the ability of the Company contingent payment or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessvalue obligations), (By) “most favored nation”, “exclusivity” or similar provisions, (C) a right involves the issuance of first refusal or right any Equity Securities of first offer or similar right that limits the ability of the Company Allergan or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after following the date of this Agreement or (z) grants to any Person (other than any member of the Allergan Group) any right of first refusal, right of first negotiation, right of first offer, option to purchase, option to license, or any other similar rights with respect to any Allergan Product or any material Intellectual Property of Allergan;
(B) any Contract with any Governmental Entity that subjects is material to Allergan and its Subsidiaries, taken as a whole, and involving or that would reasonably be expected to involve payments to or from any Governmental Entity in an amount having a maximum potential value in excess of $100 million;
(C) any Contract that (x) limits or purports to limit, in any material respect, the Company freedom of Allergan or any of its Subsidiaries to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material ongoing requirements respect, the freedom of AbbVie or any of its Affiliates to take such actions after the Effective Time, (y) contains exclusivity or “most favored nation” obligations or restrictions (other than ordinary course confidentiality requirements that restrict or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating purport to any equity securities of the Company restrict Allergan or any of its Subsidiaries in any material respect or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time, (z) contains any other provisions materially restricting or purporting to materially restrict the ability of Allergan or any of its Subsidiaries to sell, market, distribute, promote, manufacture, develop, commercialize, test or research any Allergan Products through third parties or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time;
(D) any Contract relating to dispositionthird party indebtedness for borrowed money in excess of $100 million (whether incurred, voting assumed, guaranteed or dividends with respect to secured by any equity securities asset) of the Company Allergan or any of its Subsidiaries; or;
(xviE) is with an affiliate any Contract restricting Allergan or any of its Subsidiaries from (x) the payment of dividends (y) the making of distributions to shareholders or (z) the ability to repurchase or redeem Equity Securities;
(F) any joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research, development or other Person that would be required similar agreement, which is material to be disclosed under Item 404 the Allergan Group, taken as a whole;
(G) any Contracts or other transactions with any (A) executive officer or director of Regulation S-K Allergan, or (B) affiliate (as such term is defined in Rule 12b-2 promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.associates” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice members of any of the foregoing. To the Knowledge their “immediate family”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Company, since February 1, 2021, no counterparty to any Material Contract has (AExchange Act) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in executive officer, director or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.beneficial owner;
Appears in 2 contracts
Sources: Transaction Agreement, Transaction Agreement
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as set forth on Section 3.16 of the date hereofDisclosure Schedule, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contract:
any: (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
collective bargaining agreement or contract with any labor union; (ii) that bonus, pension, profit sharing, retirement or other form of deferred compensation plan; (iii) stock purchase, stock option, stock appreciation or similar plan; (iv) contract for the employment of any officer, individual employee or other person on a full-time or consulting basis involving an annual compensation commitment by the Company or a Subsidiary in excess of $200,000; (v) agreement or indenture relating to the borrowing of money in excess of $1,000,000 or to mortgaging, pledging or otherwise placing a Lien (other than a Permitted Lien (as defined herein)) on any material portion of the Company's assets; (vi) guaranty of any obligation for borrowed money in excess of $1,000,000; (vii) lease or agreement under which it is lessee of, or holds or operates any personal property owned by any other party, for which the annual rental exceeds $250,000, (viii) contract or group of related contracts with the ten same party for the purchase of inventories, supplies or services, under which the undelivered balance of such inventories, supplies or services has a selling price in excess of $1,000,000; (10ix) largest customers contract or group of related contracts with the same party for the sale of products or services under which the undelivered balance of such products or services has a sales price in excess of $1,000,000; (x) agreement pertaining to Intellectual Property (as hereinafter defined) including, license agreements or similar arrangements; or (xi) contract which prohibits or materially limits the Company or a Subsidiary in any material respect from freely engaging in business in the United States or anywhere else in the world (all such contracts and agreements, "Material Contracts"). The Company has provided or made available to ICS (i) true and complete copies of all written Material Contracts, or (ii) with respect to such Material Contracts that have not been reduced to writing, a written description thereof, each of which is listed on Section 3.16 of the Disclosure Schedule. Neither the Company and nor any of its Subsidiaries during is, or has received any notice or has any knowledge that any other party is, in default in any respect under any such Material Contract, except for those defaults which would not reasonably be likely, either individually or in the fiscal year ended January 31aggregate, 2024 to have a Material Adverse Effect with respect to the Company; and there has not occurred any event that, with the lapse of time or the giving of notice or both, would constitute such a material default. For purposes of this Agreement, "Permitted Liens" shall mean (as determined based on revenue received from such customers during such time periodi) Liens for Taxes (excluding any non-disclosure agreementsother than those pursuant to Section 412 of the Code) or governmental assessments, data processing agreementscharges or claims, purchase orders the payment of which is not yet due, or statements for Taxes, the validity of work which are being contested in good faith by appropriate proceedings; (ii) statutory Liens incurred in the ordinary course of business for sums not yet due or invoices entered into being contested in good faith; (iii) Liens relating to deposits made in the ordinary course of business, ; and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for Liens which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or do not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither aggregate materially interfere with or materially impair the Company nor any Subsidiary conduct of the Company hasBusiness as it is currently being conducted, andor the value, to the Knowledge marketability, use or ownership of the Company, none of the other parties thereto have, violated any provision of, or committed or failed asset to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectit attaches.
Appears in 2 contracts
Sources: Merger Agreement (Integrated Circuit Systems Inc), Merger Agreement (Microclock Inc)
Material Contracts. (a) Except (iSection 5.13(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Arch Disclosure Letter sets forth a correct and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, complete list as of the date hereof, neither the Company nor any Subsidiary hereof of all of the Company following types of Contracts used or held for use primarily in or related primarily to the operation or conduct of the Arch Business that are to be transferred to and assumed by the JV Entities as of the Closing Date and to which Arch or any of its Affiliates is a party or to which any of the Arch Contributed Assets or is bound by the Arch Transferred Subsidiaries are subject, in each case other than any Excluded Assets (each, an “Arch Material Contract:”):
(i) that any loan and credit agreement, Contract, note, debenture, bond, indenture, mortgage, security agreement, pledge or other similar agreement pursuant to which any material Indebtedness for borrowed money is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)outstanding or may be incurred;
(ii) that any Contract (other than any coal supply agreement, or purchase order or commitment to sell or offer to sell coal) with a remaining term of more than one year from the date hereof which is with expected to involve the ten (10) largest customers payment of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders an amount in excess of $10,000,000 or statements receipt of work or invoices entered into an amount in excess of $10,000,000 in the ordinary course aggregate over the remaining term of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)such Contract;
(iii) that is with the ten (10) largest vendors any joint venture, partnership or similar organizational Contract involving a sharing of profits or losses related to all or any portion of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Arch Business;
(iv) that is a Government Contractany Contract granting to any Person an option, right of first offer or right of first refusal to purchase or acquire any Arch Contributed Asset (other than purchase options for additional coal volumes);
(v) evidencing any Contract that (A) provides for exclusive rights for the benefit of any third party, (B) grants “most favored nation” status to any third party or (C) requires Arch or any of its Affiliates to provide any minimum level of service, in each case which (1) are, or in a capital expenditure for manner which future payments are required in excess is, material to the Arch Business taken as a whole and (2) may not be terminated (including such restrictive provisions) by Arch or its Affiliates on less than 90 days’ notice without payment by Arch or any of $5,000,000its Affiliates of any material penalty;
(vi) relating to any Contract that restricts in any material respect the disposition or acquisition ability of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company Arch or its Subsidiaries have material continuing obligations;
Affiliates (vii) containing (A) a covenant or other provision limiting could restrict in any material respect the ability of the Company or any Subsidiary of the Company JV Entities) to compete or engage in any line of business or to compete with any Person in any geographic areageographical area and which may not be terminated (including such restrictive provisions) by Arch or its Affiliates on less than 90 days’ notice without payment by Arch or any of its Affiliates of any material penalty;
(vii) any Contract with a remaining term of more than one year from the date hereof that could require the JV Entities to purchase all (or a specified portion of) their total requirements of any product or service from a third party or that contains “take or pay” provisions and which (A) is expected to involve the payment of an amount in excess of $10,000,000 in the aggregate during the fiscal year ending December 31, 2019 or any future fiscal year and (B) may not be terminated (including such restrictive provisions) by Arch or its Affiliates on less than 90 days’ notice without payment by Arch or any of its Affiliates of any material penalty;
(viii) any Contract relating to the disposition or acquisition by Arch or any of its Affiliates of any material business or any material amounts of assets (other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” with obligations remaining to be performed or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits Liabilities continuing after the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)date hereof;
(ix) any hedging, swap, derivativelease or agreement (including capital lease arrangements) under which Arch or any of its Affiliates is lessee of, or similar Contractholds or operates, any Tangible Personal Property for which the annual rental costs exceed $10,000,000;
(x) that is a license (any coal supply agreement, or a covenantpurchase order or commitment to sell or offer to sell coal, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, with a remaining term of more than three years from the date hereof or (B) pursuant to which the Company with remaining deliverable tonnage of (1) 10,000,000 tons from any mines located in Wyoming that are set forth on Schedule 1.1(a) or (2) 1,500,000 tons from any Subsidiary received licensing revenues for the fiscal year ended January 31mines located in Colorado that are set forth on Schedule 1.1(a);
(xi) any Contract involving swaps, 2024 in excess futures, derivatives or similar instruments, regardless of $1,000,000value, other than non-exclusive licenses granted to customers except such Contracts entered into as a hedging activity in the ordinary course of business, and/or (C) that is otherwise material to the Company business consistent with Arch’s past practice and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeinternal policy guidelines;
(xii) that any Contract pursuant to which a Governmental Authority is a Company Real Property Lease providing tax abatements or other similar economic incentives in connection with remaining obligations in excess of $1,000,000;the Arch Business; and
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) other Contract that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require material to the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesArch Business.
(b) Each Contract of the type described above Arch and its Affiliates have duly performed and complied in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “all material respects with their respective obligations under each Arch Material Contract.” Except for Material Contracts that have expired . None of Arch or terminated by their terms, all any of the Material Contracts are (A) valid and binding on the Company its Affiliates has received any notice of termination or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each default from any other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any such Arch Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021Arch, no counterparty other party to any such Arch Material Contract is in default of its obligations thereunder.
(c) Except as set forth on Section 5.13(c) of the Arch Disclosure Letter, Arch has (A) canceled or otherwise terminated, or threatened in writing made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount Peabody true and complete copies of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Arch Material Adverse EffectContract.
Appears in 2 contracts
Sources: Implementation Agreement (Arch Coal Inc), Implementation Agreement (Peabody Energy Corp)
Material Contracts. (a) Except (ias set forth on Schedule 3.7(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company no Seller Party is a party to or bound by, and the Acquired Assets are not subject to, any of the following Contracts (in each case below, to the extent that the same relates primarily to, or is bound by any Contract:otherwise necessary to the operation of the Business, the Acquired Assets or the Assumed Liabilities):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any Contracts for the purchase or sale of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices Inventory entered into in the ordinary course of business, and other similar which either individually or in conjunction with Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of businesssame party, and in connection with the same matter, relate to commitments in excess of $25,000 per annum (including any agreements requiring the payment of any royalties, milestones, minimum purchase payments or other similar Contracts that are ancillary to Contracts pursuant to which cost guarantees made by or on behalf of goods and services is paid or payable by the Company);
(ii) any Contracts relating to the purchase, lease or similar arrangement of any machinery, equipment, furniture, fixture or similar property having a value in excess of $25,000;
(iii) any Contracts with (A) any director, officer, employee or Affiliate of any Seller Party involving payments in excess of $5,000 per annum (or the equivalent amount in another currency), or (B) to the Knowledge of the Seller Parties, any Affiliate or family member of any of the foregoing involving payments in excess of $5,000 per annum;
(iv) any agreement with any independent contractor or similar Contract that (x) involves the payment or receipt of more than $25,000 per annum and (y) is a Government Contractnot terminable within thirty (30) days’ notice or less without penalty, liability or premium;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000any currently effective collective bargaining or union agreements with respect to its employees;
(vi) any agreement (A) restricting any Seller Party from engaging, participating, or competing with any other Person, in any line of business, market or geographic area, or to make use of any Intellectual Property Rights; (B) granting most favored nation pricing, exclusive sales, distribution, marketing or other exclusive rights, rights of first refusal or rights of first negotiation to any other Person; (C) otherwise limiting the right of any Seller Party to make, use, sell, offer for sale, import, or distribute any Acquired Technology or services related thereto; or (D) any agreement pursuant to which any Seller Party has granted exclusive rights with respect to the Acquired Technology, including any Intellectual Property Rights;
(vii) any agreement of guarantee, credit support, assumption or endorsement of, any indebtedness for borrowed money of other Persons;
(viii) any line of credit, standby financing, revolving credit or other similar financing arrangement of any sort that is secured by any Acquired Assets;
(ix) any agreement relating to any joint venture or partnership arrangement between any Seller Party, on the disposition one hand, and a third party, on the other hand;
(x) any leases for real property or acquisition personal property;
(xi) any distributorship, customer sales or leasing Contracts under which any Seller Party is currently providing or receiving products or services and involving more than $25,000 per annum; and
(xii) any Contract of indemnification or warranty, other than (A) under a Seller Party’s unmodified forms of standard customer/distribution agreements, the forms of which have been made available to the Purchaser or its counsel, or (B) warranties implied by Law;
(xiii) any business, equityContract pursuant to which any Seller Party has acquired or divested a business 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 or sale of assets, license or otherwise;
(xiv) any Person for aggregate consideration Contract with any Governmental Entity;
(xv) any confidentiality, secrecy or non-disclosure Contract in excess of $5,000,000 by the Company effect other than (A) any such Contract entered into with customers or any of its Subsidiaries outside of distributors in the ordinary course of business pursuant to a Seller Party’s standard unmodified form (a copy of which has been made available to the Purchaser or its counsel) and (B) any such Contract entered into in connection with a possible disposition by the Company or its Subsidiaries have material continuing obligationsof the Business, the terms of which prohibit the applicable Seller Party from disclosing the existence of such Contract, the parties thereto and/or the provisions thereof;
(viixvi) containing (A) any agreement 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 covenant result of the execution of this Agreement or the consummation of the transactions contemplated hereunder, either alone or in combination with any other provision limiting in any material respect event, which trigger or exercise of rights, consequence, result or effect would materially impair the ability of the Company Purchaser to consummate the transactions hereunder or operate the Business after Closing; and
(xvii) any Subsidiary Contracts related to research or development with respect to Acquired Technology. The agreements, documents and instruments set forth on Schedule 3.7(a) of the Company Disclosure Schedule are collectively with the KNE Contracts referred to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) herein as “most favored nationMaterial Contracts”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or . Except as otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(aSchedule 3.7(a) of the Company Disclosure Schedule, is referred true, complete and correct copies of each document or instrument constituting a Material Contract in its complete, current and up-to-date version and true, complete and correct written description of the material terms of any non-written Contract listed on Schedule 3.7(a) of the Company Disclosure Schedule (Material Contracts) have been made available to herein the Purchaser by virtue of having been posted on the electronic data room.
(b) Except as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsset forth on Schedule 3.7(b) of the Company Disclosure Schedule, all of the Material Contracts are (A) valid and valid, binding on the Company or the applicable Subsidiary of the Companyin accordance with their respective terms, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except and enforceable against (i) the Seller Party or KNE (as applicable) which are a party thereto, and (ii) to the Knowledge of the Seller Parties and KNE, each third party which is party thereto, in accordance with their respective terms, except, in each case, to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium and or other similar Applicable Law Laws affecting the enforcement of creditors’ rights generally and by general principles of equity and (ii) as would notequity, individually regardless of whether such enforceability is considered in a proceeding at law or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary equity.
(c) Except as set forth on Schedule 3.7(c) of the Company hasDisclosure Schedule, and, to the Knowledge of the Company, none of the other parties thereto have, violated neither any provision of, Seller Party nor KNE is in default under or committed in breach or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions violation of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021Seller Parties, no counterparty other party is in default under or in breach or violation of any Material Contract.
(d) The agreements, documents and instruments set forth on Schedule 3.7(d) of the Company Disclosure Schedule are referred to herein as the “KNE Contracts”. Other than the KNE Contracts, KNE is not a party to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Spectranetics Corp), Asset Purchase Agreement (Kensey Nash Corp)
Material Contracts. All agreements, contracts, leases, licenses, instruments, commitments (a) Except (i) as filed as exhibits oral or written), indebtedness, liabilities and other obligations to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the which a Group Company is a party to or by which it is bound by any Contract:
that (ia) that is a “are material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or conduct and operations of its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company business and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equityproperties, or all (b) obligate such Group Company to share, license or substantially all of the assets of develop any Person for aggregate consideration in excess of $5,000,000 by the Company product or any of its Subsidiaries technology outside of the ordinary course of business pursuant are hereinafter referred to which as “Material Contracts”. For purposes of clause (a) of this Section, “material” means any agreement, contract, indebtedness, liability, arrangement or other obligation (i) having an aggregate value, cost, liability or amount in excess of RMB5,000,000, (ii) with the Company or its Subsidiaries have material continuing obligations;
term thereof extending for more than one (vii1) year beyond the date of this Agreement, (iii) containing (A) a covenant exclusivity, non-competition, or other provision limiting in similar clauses that impair, restrict or impose conditions on any material respect the ability of the Company Group Companies’ right to offer or any Subsidiary of the Company to compete sell products or engage services in any line of business specified areas, during specified periods, or to compete with any Person in any geographic areaotherwise, other than any customary employee non-solicitation or no-hire clauses entered into (iv) not in the ordinary course of business, (Bv) “most favored nation”, “exclusivity” transferring or similar provisions, (C) a right of first refusal licensing any Intellectual Property to or right of first offer or similar right that limits the ability from any of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or Group Companies (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of than licenses granted under the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee medical devices sales agreements executed by the Group Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business), and/or (Cvi) involving any provision providing for exclusivity, “change in control”, “most favored nations”, rights of first refusal or first negotiation or similar rights, or granting a power of attorney, agency or similar authority, (vii) involving the ownership or lease of, title to, use of, or any leasehold or other interest in, any real or personal property with an annual rental exceeding US$200,000 (except for movable property leases in the ordinary course of business and involving payments of less than US$100,000), (viii) involving a loan (other than accounts receivable from trade debtors in the ordinary course of business) or advance to, or investment in, any Person that is otherwise material to not a Group Company, (ix) providing for the incurrence of indebtedness of any Group Company and its Subsidiaries taken as with a whole;
financial institute, (x) involving any provision providing for the guarantee of any indebtedness, (xi) that is a license (or a covenantbeing between, consent or on the one hand, any Group Company and, on the other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basishand, (Bx) on a non-exclusive basisthe Founder or his/her Affiliates or (y) any Related Party of any Group Company, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that being with a Governmental Authority, or sole-source supplier of any material product or service. Each Material Contract is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary agreement of the Companyparties thereto, as the case may beperformance of which does not and will not violate any applicable Laws in any material respects, andand is in full force and effect against the parties thereto. Each Group Company has duly performed all of its obligations under each Contract in material respects to the extent that such obligations to perform have accrued, and no breach or default, to the Knowledge of any of the CompanyWarrantors, each alleged breach or alleged default, or event which would constitute a breach or default thereunder by such Group Company or any other party or obligor with respect thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected has occurred. No Group Company has given notice that it intends to have terminate a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andContract or, to the Knowledge of the Company, none any of the Warrantors, that any other parties party thereto havehas breached, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of defaulted under any Material Contract, except in each case for those violationsand no Group Company has received any notice that it has breached, acts (violated or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company defaulted under any Material Adverse Effect and, as of February 1, 2021Contract or, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the CompanyWarrantors, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any other party thereto intends to terminate such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Share Purchase Agreement (Global Mofy Metaverse LTD), Share Purchase Agreement (Global Mofy Metaverse LTD)
Material Contracts. (a) Except For purposes of this Agreement, “Company Material Contract” shall mean any of the following to which the Company or any of its Subsidiaries is a party or by which it or its assets are bound: (i) as filed as exhibits any agreement relating to the Company SEC Documentsindebtedness for borrowed money in excess of $500,000, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(iiSEC) that is with the ten (10) largest customers of respect to the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
; (iii) that is with any agreement providing for the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding indemnification or any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 guarantee by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in of any line of business or to compete with any Person in any geographic areaperson, other than any customary employee non-solicitation or no-hire clauses except an agreement entered into in the ordinary course of business, (Biv) “most favored nation”any joint venture, “exclusivity” partnership or similar provisionsdocument or agreement, (Cv) a right of first refusal or right of first offer or similar right any agreement that limits or purports to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, license, pledge or otherwise dispose of assetsany assets having an aggregate value in excess of $2.5 million, rights (vi) any Contract listed in Section 2.2(b) of the Company Disclosure Letter, (vii) any employment, contractor or properties or (D) a minimum purchase, minimum volume, “earnout” consulting Contract with any executive officer or other contingentemployee of the Company and its Subsidiaries earning an annual salary in excess of $200,000 (and, deferred with respect to the Company’s and its Subsidiaries’ Indian operations, any employment, contractor or fixed payment consulting Contract with any executive officer or other employee earning an annual salary in excess of $50,000) or member of the Company’s Board of Directors, other than those that are terminable by the Company or any of its Subsidiaries on no more than 30 days notice without liability or financial obligation to the Company or any of its Subsidiaries; (viii) any material lease of real property; (ix)any Contract with any Key Company Client containing “most favored nation” provisions, (x) agreements, contracts or letter of intent regarding proposed or any pending acquisition of a Person or business, (xi) Contracts under which the Company or any of its Subsidiaries has loaned or advanced any material amounts to any Person (other than advances to Employees in the ordinary course of business), (xii) contracts under which the Company is obligated to pay an amount in excess of $2.5 million annually, and (xiii) any Contract, or group of Contracts with a Person (or group of affiliated Persons), the termination or breach of which could reasonably be expected to have a Material Adverse Effect on the Company and its Subsidiaries, taken as a whole; and any contract or other agreement not made in each case, that the ordinary course of business which is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to , or evidencing indebtedness for borrowed money, debt securities, warrants which would prohibit or other rights to acquire any debt securities, delay the consummation of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company Merger or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of transactions contemplated by this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesAgreement.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Cap Gemini Sa), Merger Agreement (Kanbay International Inc)
Material Contracts. (a) Except Section 4.06(a) of the Seller Disclosure Schedules lists each of the following Contracts that are primarily used in or related to, or primarily arise out of, the Business, the Purchased Assets or the Assumed Liabilities (together with all Leases, the Material Contracts):
(i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into all Contracts involving aggregate consideration in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as excess of $2,000,000 or requiring performance by any party more than one year from the date hereof, neither the Company nor any Subsidiary of the Company is a party to which, in each case, cannot be cancelled without penalty or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)on less than 90 days’ notice;
(ii) any Contract with (A) any supplier of goods or services that is has resulted in or that Seller expects to result in expenditures by the Business of more than $1,000,000 in 2017 or 2018 or (B) any customer that has resulted in or that Seller reasonably expects to result in sales by the Business of more than $2,000,000 in 2017 or 2018;
(iii) any Contract related to the Business with a sales representative, manufacturer’s representative, distributor, dealer, broker, sales agency, advertising agency, or other Person engaged in sales, distribution, or promotional activities or any other Contract providing for commissions, in each case, that has resulted in or that Seller reasonably expects to result in expenditures by the ten Business of more than $1,000,000 in 2017 or 2018;
(10iv) largest customers all Contracts that relate to the sale of any of the Company Purchased Assets, other than Inventory and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into Tangible Personal Property in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiiiv) all executory Contracts that involves relate to the acquisition of any business, a material joint venture, profit sharing, partnership amount of stock or similar agreement from which the Company assets of any other Person or any real property (whether by merger, sale of its Subsidiaries recognized revenues stock, sale of assets or otherwise), in each case involving amounts in excess of $2,000,000;
(vi) except for agreements relating to trade receivables, all Contracts relating to indebtedness (including guarantees), in each case having an outstanding principal amount in excess of $1,000,000;
(vii) all Contracts relating to the placing of an Encumbrance (other than a Permitted Encumbrance) on any of the Purchased Assets;
(viii) any lease for tangible personal property providing for rental payments in excess of $1,000,000 during the in any fiscal year ended January 31or $5,000,000 in the aggregate;
(ix) any Contract that expressly limits, 2024in any material respect, the freedom of the Business to compete with any Person or in any geographical area;
(x) any commitment to make any material capital expenditures to the extent binding on the Business;
(xi) any Contract relating to any joint venture, partnership, strategic alliance, profit sharing or similar relationship;
(xii) any Contract that contains a “most favored nation”, exclusivity, right of first offer, right of first refusal, requirements, “take or pay”, termination fee or similar provision, which, in each case, cannot be cancelled without penalty or on less than 90 days’ notice;
(xiii) all collective bargaining agreements or Contracts with any labor organization, union or association;
(xiv) that is a settlement, conciliation or similar any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require materially restricts the Company or any use of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Intellectual Property; and
(xv) any stockholders’ agreementall Contracts, proxy, voting trust agreement the loss or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities termination of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that which would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected likely to have a Material Adverse Effect.
(b) Seller has provided to Buyer a true and correct copy of each of the Material Contracts. Except as would not be material to the Business, each Material Contract is in full force and effect and constitutes a legal, valid, and binding obligation of the Seller or its Affiliates, enforceable against such party and, to Seller’s Knowledge, binding on and enforceable against any other party thereto, in accordance with its terms. Except as would not be material to the Business, neither the Seller, nor its Affiliates, nor, to Seller’s Knowledge, any other party to a Material Contract is in breach of, or default under, any Material Contract in any material respect.
Appears in 2 contracts
Sources: Transaction Agreement, Transaction Agreement (Starbucks Corp)
Material Contracts. (a) Except (iSection 4.19(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule sets forth, as of the date hereofof this Agreement, neither a correct and complete list of each of the following Contracts to which the Company nor or any Subsidiary of the Company its Subsidiaries is a party to party, or by which any of their respective properties or assets is bound by any Contractbound:
(i) that is a any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of promulgated by the Exchange ActSEC) (other than any Company Benefit Plan);
(ii) any Contract that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in imposes any material respect restriction on the ability of the Company right or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge compete with any other Person or otherwise dispose of assets, rights solicit any client or properties or customer;
(Diii) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of any Contract that obligates the Company or its Subsidiaries to conduct business with any third party on a preferential or exclusive basis and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viiiiv) any Contract relating to Indebtedness (other than intercompany indebtedness owed by the Company or evidencing indebtedness for borrowed moneyany wholly owned Subsidiary to any other wholly owned Subsidiary, debt securities, warrants or other rights by any wholly owned Subsidiary to acquire any debt securities, the Company) of the Company or any Subsidiary of the Company, its Subsidiaries having an outstanding principal amount in excess of $5,000,000 or any guarantee by that grants a Lien (other than a Permitted Lien) on properties or assets of the Company or any of its Subsidiaries of the obligations of Subsidiaries;
(v) any Person Contract with respect to an interest, rate, currency or other swap or derivative transaction (in each case, excluding, for the avoidance of doubt, intercompany loans other than those between the Company and its Subsidiaries) with a fair value in excess of $5,000,000;
(vi) any Contract that grants any right of first refusal, right of first offer or similar right with respect to any material assets, rights or properties of the Company or its wholly-Subsidiaries;
(vii) any Contract entered into on or after January 1, 2024 that provides for the acquisition or disposition of any assets (other than acquisitions or dispositions of sale in the ordinary course of business) or business (whether by merger, sale of stock, sale of assets or otherwise) or capital stock or other equity interests of any Person, and with any outstanding obligations as of the date of this Agreement, in each case with a value in excess of $5,000,000;
(viii) any material joint venture, partnership or limited liability company agreement or other similar Contract relating to the formation, creation, operation, management or control of any material joint venture, partnership or limited liability company, other than any such Contract solely between the Company and its wholly owned Subsidiaries or between or among any wholly-the Company’s wholly owned Subsidiaries or any organizational documents of the Company)’s wholly owned Subsidiaries;
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) Contract pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues has continuing “earn-out” or similar obligations that could result in payments in excess of $1,000,000 during 5,000,000 in the fiscal year ended January 31aggregate;
(x) any Contract relating to Program Rights under which it would reasonably be expected that the Company and its Subsidiaries would make annual payments in excess of $3,000,000 per year;
(xi) any network affiliation Contract (or similar Contract) with ABC, 2024CBS, Fox, NBC, CW, MyNetworkTV or Spanish language networks;
(xii) any Contract that is a material Sharing Agreement and any related option agreement (other than those among the Company and its Subsidiaries);
(xiii) any Contract that is a channel sharing agreement with a third party or parties with respect to the sharing of spectrum for the operation of two (2) or more separately owned television stations;
(xiv) any Contract relating to retransmission or distribution by any MVPD that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require reported more than 25,000 paid subscribers to the Company or any of and its Subsidiaries for May 2025 with respect to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the at least one Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Station; and
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is Contract with an affiliate or other Person that would be required to be disclosed by the Company under Item 404 404(a) of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among . All contracts of the types referred to in clauses (i) through (xv) above are referred to herein as “Company and its wholly-owned SubsidiariesMaterial Contracts.”
(b) Each Contract of Neither the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) Company nor any Subsidiary of the Company Disclosure Schedule, is referred to herein as a “in breach of or default in any respect under the terms of any Company Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, Contract and, to the Knowledge of the Company, each no other party theretoto any Company Material Contract is in breach of or default in any respect under the terms of any Company Material Contract, and (B) no event has occurred or not occurred through the Company’s or any of its Subsidiaries’ action or inaction or, to the Company’s Knowledge, through the action or inaction of any third party, that with notice or the lapse of time or both would constitute a breach of or default or result in full force and effectthe termination of or a right of termination or cancelation thereunder, accelerate the performance or obligations required thereby, or result in the loss of any benefit under the terms of any Company Material Contract, in each case except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any each Company Material Contract has (Ai) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with is a valid and binding obligation of the Company or any the Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company that is party thereto and its Subsidiaries of each other thanparty thereto, and (ii) is in full force and effect, subject to the Enforceability Exceptions, in each case, case except as would not reasonably be expected to have have, individually or in the aggregate, a Company Material Adverse Effect. There are no disputes pending or, to the Company’s Knowledge, threatened with respect to any Company Material Contract, and neither the Company nor any of its Subsidiaries has received any written notice of the intention of any other party to a Company Material Contract to terminate for default, convenience or otherwise any Company Material Contract, in each case except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. True and complete copies of the Company Material Contracts and any material amendments thereto have been made available to Representatives of Parent prior to the date of this Agreement, except if providing any such Contract would reasonably be expected to violate any applicable Law or such Company Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Tegna Inc), Merger Agreement (Nexstar Media Group, Inc.)
Material Contracts. (a) Except (i) as Except for this Agreement and except for Contracts filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansReports, as of the date hereof, neither the Company nor any Subsidiary none of the Company or its Subsidiaries is a party to or is bound by any Contractby:
(iA) any Contract that is a “material contract” (as such term is defined in would be required to be filed by the Company pursuant to Item 601(b)(10) 4 of Regulation Sthe Instructions to Exhibits of Form 20-K of F under the Exchange Act);
(iiB) that is with any Contract involving the ten (10) largest customers payment or receipt of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 amounts by the Company or any of its Subsidiaries outside Subsidiaries, or relating to indebtedness for borrowed money or any financial guaranty, of the ordinary course of business pursuant to which the Company or more than RMB 50,000,000 in any calendar year on its Subsidiaries have material continuing obligationsface;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) any Contract that contains a right of first refusal or right of first offer put, call or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024any Person or assets that have a fair market value or purchase price of more than RMB 30,000,000;
(xivD) that is a settlementany Contract relating to the formation, conciliation creation, operation, management or similar control of any joint venture;
(E) any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require between the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement and any director or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities executive officer of the Company or any of its Subsidiaries Person beneficially owning five percent or relating to disposition, voting or dividends with respect to any equity securities more of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be outstanding Shares required to be disclosed under pursuant to Item 404 7B or Item 19 of Regulation SForm 20-K promulgated F under the Exchange Act, ; and
(F) any non-competition Contract or other than Contract that limits or purports to limit in any Contract solely among material respect the type of business in which the Company and or its wholly-owned Subsidiaries.
(b) Each Contract of Subsidiaries may engage, the type described above in Section 4.15(a), whether of goods or not set forth in Section 4.15(a) of services which the Company Disclosure Scheduleor its Subsidiaries may manufacture, produce, import, export, offer for sale, sell or distribute or the manner or locations in which any of them may so engage in any business or use their assets. Each such Contract described in clauses (A) through (F) above and each such Contract that would be a Material Contract but for the exception of being filed as an exhibit to the Company Reports is referred to herein as a “Material Contract”.”
(ii) Except for as is not, individually or in the aggregate, a Material Contracts that have expired or terminated by their termsAdverse Effect, all (A) each of the Material Contracts are (A) is valid and binding on the Company or the applicable Subsidiary of the Companyits Subsidiaries, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium effect subject to the Bankruptcy and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity Equity Exception; and (iiB) as would not, individually there is no breach or in the aggregate, reasonably be expected to have a Company default under any Material Adverse Effect. Neither Contracts by the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, its Subsidiaries and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with thereunder by the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSubsidiaries.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (China GrenTech CORP LTD), Merger Agreement (China GrenTech CORP LTD)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary Section 4.11 of the Company Disclosure Letter lists each of the following contracts and agreements (and all amendments, modifications and supplements thereto and all side letters to which the Company or any of its Subsidiaries is a party affecting the obligations of any party thereunder) to which the Company or any of its Subsidiaries is a party or by which any of their respective properties or assets are bound by any Contract:(other than Government Contracts, which are addressed in Section 4.10):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of any contract or agreement, whether written or otherwise, for the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition sale of any business, equity, material personal property or all for the furnishing of services to or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside that involves future aggregate annual payments to or by the Company or any of its Subsidiaries of $1,000,000 or more (excluding those contracts and agreements terminable by the ordinary course Company or such Subsidiary upon 180 days’ notice or less without liability to the Company exceeding $500,000);
(ii) any contract, agreement or instrument relating to or evidencing capitalized lease obligations or other indebtedness of, for the benefit of, or payable to, the Company or any of business its Subsidiaries (or any guaranty of capital lease obligations or other indebtedness of or by the Company or any of its Subsidiaries) in the amount of $500,000 or more;
(iii) any contract or agreement pursuant to which any third party is authorized to use any material intellectual property rights owned by or exclusively licensed to the Company or any of its Subsidiaries;
(iv) any contract or agreement pursuant to which the Company or any of its Subsidiaries have is authorized to use any material continuing obligationsCompany Intellectual Property Rights;
(viiv) any agreement concerning an interest rate cap, interest rate collar, interest rate swap, currency hedging transaction or any other similar agreement to which the Company or any of its Subsidiaries is a party;
(vi) any agreement (other than agreements containing (Aimmaterial or de minimis restrictions) a covenant that contains any non-compete or other provision limiting exclusivity provisions with respect to any line of business in which the Company or any of its Subsidiaries is currently engaged or geographic area with respect to the Company or any of its Subsidiaries, or that purports to restrict in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose conduct any line of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, business in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues is currently engaged or to compete with any Person or operate in excess of $1,000,000 during the fiscal year ended January 31, 2024any geographic area or location;
(xivvii) that is a settlementany material partnership, conciliation limited liability company agreement, joint venture or other similar Contract (x) agreement entered into with any Governmental Authority entered into since February 1, 2021, third party;
(yviii) any contract or agreement with respect to any acquisition or disposition of any person or business or material portion thereof pursuant to which would require the Company or any of its Subsidiaries has any continuing indemnification, “earn-out” or other contingent payment obligation;
(ix) any contract or agreement pursuant to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects which the Company or any of its Subsidiaries agrees to indemnify or hold harmless any material ongoing requirements director or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities executive officer of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities (other than the organizational documents of the Company or the Company’s Subsidiaries);
(x) any contract or agreement that would prevent, materially delay or materially impede the Company’s ability to consummate the Offer, the Merger or any of its Subsidiariesthe other transactions contemplated by this Agreement; or
(xvixi) is any commitments and agreements to enter into any of the foregoing. Each such contract described in clauses (i) through (xi) above, together with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
each contract described in paragraph (b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedulebelow, is referred to herein as a “Material Contract.” Except for Material Contracts ”
(b) All the material contracts that are required to be filed as exhibits to the Company SEC Reports have expired been described or terminated by their terms, all filed as required.
(c) Each of the Material Contracts are (A) is a valid and binding on obligation of the Company (or the applicable Subsidiary Subsidiaries of the Company party thereto), and to the Company’s knowledge, as the case may beother parties thereto, enforceable against the Company and its Subsidiaries and, to the Knowledge of Company’s knowledge, the Company, each other party thereto, and (B) parties thereto in full force and effectaccordance with its terms, except (i) as enforceability may be limited by bankruptcybankruptcy laws, insolvency, moratorium and other similar Applicable Law laws affecting creditors’ rights generally and by general principles of equity affecting the availability of specific performance and other equitable remedies.
(iid) as Neither the Company nor any of its Subsidiaries is, nor to the Company’s knowledge is any other party, in breach, default or violation (and no event has occurred or not occurred through the Company’s or any of its Subsidiaries’ action or inaction or, to the Company’s knowledge, through the action or inaction of any third party that with notice or the lapse of time or both would notconstitute a breach, default or violation) of any term, condition or provision of any Contract, except for breaches, defaults or violations that have not had and would not reasonably be expected to have, either individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (United Industrial Corp /De/), Merger Agreement (Textron Inc)
Material Contracts. (a) Except (iSchedule 3.12(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansSeller Disclosure Letter sets forth, as of the date hereof, neither the Company nor any Subsidiary a list of all of the Company following Contracts that relate primarily to the Business or are necessary for the operation of the Business, in each case, to which a Seller or a Conveyed Entity is a party to party, or is bound by any Contract:
that has been entered into on behalf of the Business (i) collectively, together with each such Contract that is entered into after the date of this Agreement, the “Material Contracts”; and each a “material contract” Material Contract”), materially correct and complete copies of which (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices for Business Products entered into in the ordinary course of businessthe Business) have been made available to Purchaser:
(i) each equipment lease or other lease of personal property which entails annual rental payments in excess of $250,000 per annum or $500,000 in the aggregate;
(ii) each Contract for goods and/or services (including any intercompany Contracts) by and between any of the Sellers and/or the Conveyed Entities and/or any of their Affiliates (other than the Business) and/or any of the officers, directors or employees of either Seller or the Conveyed Entities and/or any of their Affiliates (other than the Business), on the one hand, and the Business, on the other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)hand;
(iii) that is with the ten each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee (10excluding items set forth in Schedule 3.15(b) largest vendors of the Company and its Subsidiaries during Seller Disclosure Letter) in respect of Indebtedness of the fiscal year ended January 31, 2024 (as determined based on cost Conveyed Entities or the Business in excess of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$250,000;
(iv) each customer, distribution, reseller or sales representative Contract expected to result in payment to the applicable Conveyed Entity or any other Person on behalf of the Business in excess of $1,000,000 per annum or that is a Government Contracthave resulted in such payments in excess of $2,000,000 in the aggregate over the last three years;
(v) evidencing each Contract with a capital expenditure for which future payments are required Governmental Authority expected to result in payment to a Conveyed Entity in excess of $5,000,000100,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all each Contract with vendors (including OEMs) of the assets of any Person for aggregate consideration Business expected to result in payment by the applicable Conveyed Entity in excess of $5,000,000 by 1,000,000 per annum or that have resulted in such payments in excess of $2,000,000 in the Company or any of its Subsidiaries outside of aggregate over the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationslast three years;
(vii) containing each Contract relating to capital expenditures and involving similar future payments in excess of $250,000 individually or $500,000 in the aggregate;
(Aviii) a covenant each Contract relating to the disposition of material assets of the Business or other provision limiting the acquisition or disposition of any assets or any interest in any material respect Person or business enterprise;
(ix) each Contract limiting the ability of any Conveyed Entity or the Company or any Subsidiary of the Company to compete or engage in any line of business or Business to compete with any Person in Person;
(x) each material joint venture Contract;
(xi) each Intellectual Property License;
(xii) each employment Contract, consulting Contract and severance agreement with any geographic areadirector, other than any customary officer or employee non-solicitation of either Seller or no-hire clauses entered into in its Affiliates, Tyco or its Affiliates or the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesConveyed Entities, in each case, that engaged primarily in the Business, which is material likely to the Company and its Subsidiaries, taken as a whole;
(viii) relating to involve payments by or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, on behalf of the Company Seller or any Subsidiary its Affiliates, Tyco or its Affiliates or the Conveyed Entities in excess of the Company$150,000 per year, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property including Contracts (A) on an exclusive basisto employ or terminate executive officers or other key personnel (including key engineering staff), (B) with such present or former officers or directors pursuant to which the Company Conveyed Entities or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or Business has current Liabilities or (C) that is will result in the payment by, or the creation of any Liability to pay on behalf of the Conveyed Entities, the Business or the Purchaser any severance, termination, “golden parachute,” or other similar payments to any such present or former employees following termination of employment or otherwise material as a result of the consummation of the transactions contemplated by Transaction Documents, provided that the information relating to the Company and its Subsidiaries taken foregoing shall be as a whole;
(xi) that is a license (or a covenant, consent or other rights of the date specified in or to use Intellectual PropertySchedule 3.12(a) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000Seller Disclosure Letter;
(xiii) that involves a material joint venture, profit sharing, partnership each collective bargaining Contract or similar agreement from which the Company Contract, including any Contract with any union, works council or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024similar labor entity;
(xiv) that is a settlement, conciliation each Contract of indemnification or similar Contract hold harmless agreement (x) including with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries respect to any material ongoing requirements director, officer or restrictions (other than ordinary course confidentiality requirements employee of either Seller or restrictionsits Affiliates, Tyco or its Affiliate or the Conveyed Entities, in each case, engaged primarily in the Business);
(xv) each power of attorney granted by any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities Conveyed Entity that is effective and outstanding as of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiariesdate hereof; orand
(xvi) is with an affiliate or each other Person that Contract, the loss of which would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiarieshave a Material Adverse Effect.
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(aon Schedule 3.12(a) of the Company Seller Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsLetter, all notices, approvals and consents that were agreed by the parties to the Tyco Agreement to be given or obtained pursuant to that agreement have been properly given or obtained as required by each Material Contract in order to validly assign, transfer or convey each such Contract to Sellers or the Conveyed Entities. Except as set forth on Schedule 3.12(a) of the Seller Disclosure Letter, each Material Contracts are (A) Contract is in full force and effect and is a valid and binding on the Company or the applicable Subsidiary agreement of each of the CompanyConveyed Entities (or, as applicable, the case may be, Affiliate of the Conveyed Entities party thereto) and, to the Knowledge of the CompanySellers, each any other party theretoto any such Contract; and there exists no breach, and (B) in full force and effectviolation, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles default or event of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which default (with or without notice, lapse of time or both) would constitute by the applicable Seller or a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021Conveyed Entity or, to the Knowledge of the CompanySellers, neither the Company nor any Subsidiary of the Company has received written notice other party to any such Contract, with respect to any term or provision of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other thanContract, in each case, as which would not reasonably be expected to have a Material Adverse Effect.
(c) There are no warranty claims or other uninsured claims pending or, to the Knowledge of Sellers, threatened against any of the Sellers, the Conveyed Entities or the Business under any Contracts which might involve a material monetary Liability which is not reserved against in the Balance Sheet.
Appears in 2 contracts
Sources: Purchase Agreement (M/a-Com Technology Solutions Holdings, Inc.), Purchase Agreement (M/a-Com Technology Solutions Holdings, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to Section 6.1(A)(t)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Allergan Disclosure Schedule sets forth a list as of the date hereof, neither the Company nor any Subsidiary of this Agreement of each of the Company is a party to or is bound by following Contracts (other than any Contract:
(iAllergan Benefit Plan) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Allergan or any of its Subsidiaries outside is a party or by which it is bound (each such Contract required to be so listed, and each of the ordinary course following types of business Contracts (other than any Allergan Benefit Plan) described below to which Allergan or any of its Subsidiaries becomes a party or by which it otherwise becomes bound after the date of this Agreement, an “Allergan Material Contract”):
(A) each (i) acquisition or divestiture Contract (including any Contracts pursuant to which any member of the Company Allergan Group has transferred or its Subsidiaries have material continuing obligations;
agreed to transfer ownership of any Intellectual Property) and (viiii) containing license (Aincluding any in-license or out-license and any sublicense), collaboration agreement or similar or equivalent Contract, that, in the case of each of clauses (i) and (ii), (x) has a covenant maximum potential value (or which otherwise requires the receipt or making of payments) in excess of $100 million (including pursuant to any “earn-out,” contingent value rights, milestone payments, license fees, royalty payments, development costs or other provision limiting in any material respect the ability of the Company contingent payment or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessvalue obligations), (By) “most favored nation”, “exclusivity” or similar provisions, (C) a right involves the issuance of first refusal or right any Equity Securities of first offer or similar right that limits the ability of the Company Allergan or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after following the date of this Agreement or (z) grants to any Person (other than any member of the Allergan Group) any right of first refusal, right of first negotiation, right of first offer, option to purchase, option to license, or any other similar rights with respect to any Allergan Product or any material Intellectual Property of Allergan;
(B) any Contract with any Governmental Entity that subjects is material to Allergan and its Subsidiaries, taken as a whole, and involving or that would reasonably be expected to involve payments to or from any Governmental Entity in an amount having a maximum potential value in excess of $100 million;
(C) any Contract that (x) limits or purports to limit, in any material respect, the Company freedom of Allergan or any of its Subsidiaries to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material ongoing requirements respect, the freedom of AbbVie or any of its Affiliates to take such actions after the Effective Time, (y) contains exclusivity or “most favored nation” obligations or restrictions (other than ordinary course confidentiality requirements that restrict or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating purport to any equity securities of the Company restrict Allergan or any of its Subsidiaries in any material respect or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time, (z) contains any other provisions materially restricting or purporting to materially restrict the ability of Allergan or any of its Subsidiaries to sell, market, distribute, promote, manufacture, develop, commercialize, test or research any Allergan Products through third parties or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time;
(D) any Contract relating to dispositionthird party indebtedness for borrowed money in excess of $100 million (whether incurred, voting assumed, guaranteed or secured by any asset) of Allergan or any of its Subsidiaries;
(E) any Contract restricting Allergan or any of its Subsidiaries from (x) the payment of dividends (y) the making of distributions to shareholders or (z) the ability to repurchase or redeem Equity Securities;
(F) any joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research, development or other similar agreement, which is material to the Allergan Group, taken as a whole;
(G) any Contracts or other transactions with any (A) executive officer or director of Allergan, or (B) affiliate (as such term is defined in Rule 12b-2 promulgated under the Exchange Act) or “associates” (or members of any of their “immediate family”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act) of any such executive officer, director or beneficial owner;
(H) any Contract involving the settlement of any Action or threatened Action (or series of related Actions) (A) which (x) will involve payments by Allergan or any of its Subsidiaries after the date hereof, or involved such payments, in excess of $100 million or (y) will impose, or imposed, materially burdensome monitoring or reporting obligations by Allergan or any of its Subsidiaries outside the ordinary course of business or material restrictions on Allergan or any Subsidiary of Allergan (or, following the Completion, on AbbVie or any Subsidiary of AbbVie) or (B) which impose material restrictions on the use of any material Intellectual Property other than, in the case of this clause (B), the granting of non-exclusive licenses or sublicenses or the granting of exclusive licenses in connection with the settlement of ANDA-related litigation in the ordinary course of business;
(I) any stockholders, investors rights, registration rights or similar agreements or arrangements with respect to any equity securities the Equity Securities of the Company Allergan or any of its Subsidiaries; orand
(xviJ) is with an affiliate or any other Person that would be Contract required to be disclosed under filed by Allergan pursuant to Item 404 601(b)(10) of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.K.
(bii) Each Contract All of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Allergan Material Contracts that have expired or terminated by their termsare, all of subject to the Material Contracts are Equitable Exceptions, (A) valid and binding on the Company obligations of Allergan or the applicable a Subsidiary of the Company, Allergan (as the case may be, ) and, to the Knowledge knowledge of Allergan, each of the Company, each other party parties thereto, and (B) in full force and effecteffect and enforceable in accordance with their respective terms against Allergan or its Subsidiaries (as the case may be) and, to the knowledge of Allergan, each of the other parties thereto, in each case of (A) and (B), except (i) for such Allergan Material Contracts that are terminated after the date of this Agreement in accordance with their respective terms, other than as may a result of a default or breach by Allergan or any of its Subsidiaries of any of the provisions thereof, and except where the failure to be limited by bankruptcy, insolvency, moratorium valid and other similar Applicable Law affecting creditors’ rights generally binding obligations and by general principles of equity in full force and (ii) as effect and enforceable has not had and would notnot reasonably be expected to have, individually or in the aggregate, an Allergan Material Adverse Effect. To the knowledge of Allergan, as of the date hereof, no Person is seeking to terminate or challenging the validity or enforceability of any Allergan Material Contract, except such terminations or challenges which have not had and would not reasonably be expected to have a Company have, individually or in the aggregate, an Allergan Material Adverse Effect. Neither the Company Allergan nor any Subsidiary of its Subsidiaries, nor, as of the Company has, anddate hereof, to the Knowledge knowledge of the CompanyAllergan, none any of the other parties thereto have, has violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach default under any provision of, and as of the date hereof neither Allergan nor any of its Subsidiaries has received written notice that it has violated or default defaulted under, the provisions of any Allergan Material Contract, except in each case for those violations, acts violations and defaults (or failures potential defaults) which have not had and would not reasonably be expected to act) and defaults whichhave, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a an Allergan Material Adverse Effect. Allergan has made available to AbbVie true and complete copies of each Allergan Material Contract as in effect as of the date hereof.
Appears in 2 contracts
Sources: Transaction Agreement (Allergan PLC), Transaction Agreement (AbbVie Inc.)
Material Contracts. (a) Except (iSection 4.12(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Disclosure Schedule sets forth a complete and accurate list of binding Contracts to which any Company Entity is a party falling within the other agreements entered into in connection with the transactions contemplated hereby following categories and (iii) for Company Employee Plans, existing as of the date hereof, neither and in each case excluding any Contracts to which only Company Entities are party (collectively, the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:“Material Contracts”):
(i) that is a “material contract” any Contract (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices entered into in the ordinary course of businessOrdinary Course) with a Key Supplier or a Key Customer, and other similar Contracts that are ancillary to Contracts providing for, or pursuant to which would reasonably be expected to result in, either (A) annual payments by the Company Entities of $5 million or more, (B) annual revenue is paid or payable to the Company Entities of $5 million or its Subsidiaries)more or (C) revenue to the Company Entities of $10 million or more over the term of the Contract;
(iiiii) that is with the ten any Contract (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices entered into in the ordinary course Ordinary Course) not with a Key Supplier or a Key Customer, for the purchase, sale, lease or other disposition of businessreal or personal property, and services, equipment or other similar Contracts that are ancillary to Contracts tangible assets or materials providing for, or pursuant to which cost of goods and services is paid or payable would reasonably be expected to result in, either (A) annual payments by the Company);
Company Entities of $10 million or more, (ivB) that is a Government annual revenue to the Company Entities of $10 million or more or (C) revenue to the Company Entities of $10 million or more over the term of the Contract;
(viii) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing Contract establishing (A) a covenant any Material Joint Venture or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”any other joint venture, “exclusivity” strategic alliance or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, teaming arrangement that is or would reasonably be expected to be material to the Company and its SubsidiariesEntities, taken as a whole;
(viiiiv) relating to or evidencing indebtedness any Government Contract providing for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee either (A) annual payments by the Company Entities of $10 million or more or (B) annual revenue to the Company Entities of its Subsidiaries $10 million or more;
(v) any Contract relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) pursuant to which any Company Entity has material outstanding obligations;
(vi) the obligations Credit Agreements and any other Contract to which any Company Entity is obligor or guarantor relating to Indebtedness, except any such Contract with an aggregate outstanding principal amount not exceeding $5 million;
(vii) any Contract under which any Company Entity (A) has made or agreed to make any loan, advance or assignment of payment to, or (B) made any capital contribution to, or other investment in, any Person (in each caseother than any Company Entity), excluding, for the avoidance of doubt, intercompany loans between the Company and or guaranteed or agreed to guarantee any of its wholly-owned Subsidiaries the foregoing, except any such Contract with an aggregate amount of such an obligation not exceeding $10 million;
(viii) any Contract that obligates any Company Entity to make any capital expenditure or between or among any wholly-owned Subsidiaries investment in excess of the Company)$10 million;
(ix) any hedgingContract granting any Person (other than any other Company Entity) a Lien, swapin each case, derivativeother than a Permitted Lien, on material assets or similar Contractproperties of any Company Entity;
(x) the Company Name License Agreements and any other Contract that is a license (or a covenant, consent or other rights in or material to use Intellectual Property) granted by the business of any Company or Entity and pursuant to which any Subsidiary of the Company to Company Intellectual Property Entity: (A) obtains a license to, a covenant not to be sued under, or other right to use any Intellectual Property Right of a third party (other than (1) licenses for off-the-shelf software generally available to the public on an non-discriminatory pricing terms, (2) non-exclusive basislicenses of Intellectual Property Rights that are not material to the business of any Company Entity and that are incidental to the transaction contemplated by the Contracts containing such licenses, where the purpose of such Contracts is primarily something other than the license of such Intellectual Property Rights, or (3) licenses for Open Source software) or (B) pursuant grants a license to, a covenant not to which the Company be sued under, or other right to use any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, Company-Owned Intellectual Property Right (other than non-exclusive licenses granted to customers in the ordinary course Ordinary Course that are not material to the business of businessany Company Entity and that are incidental to the transaction contemplated by the Contracts containing such licenses, and/or where the purpose of such Contracts is primarily something other than the license of such Company Intellectual Property Rights);
(Cxi) any Labor Agreement;
(xii) any Contract with a Key Employee providing for compensation (including deferred compensation);
(xiii) any Contract providing for indemnification obligations of any Company Entity not entered into in the Ordinary Course;
(xiv) any Contract providing for “most favored customer” or similar terms that limit any Company Entity’s right to set pricing independently of any other Contract, in a manner that is otherwise or would reasonably be expected to be material to the Company and its Subsidiaries Entities, taken as a whole;
(xixv) any Contract granting a third Person any right of first refusal, right of first offer, right of first negotiation or similar right in a manner that is a license (or a covenant, consent or other rights in or would reasonably be expected to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise be material to the Company and its Subsidiaries Entities, taken as a whole;
(xiixvi) any Contract containing covenants expressly limiting in any material respect the freedom of any Company Entity to compete with any Person or operate in any jurisdiction, or containing any exclusivity, standstill or non-solicitation (other than relating to employees) obligation binding on any of the Company Entities;
(xvii) any Contract that prohibits or restricts in any material respect the right of any Company Entity to make, sell, supply, market or distribute any products or services sold or provided by any Company Entity;
(xviii) any Contract with a Seller or any of its Affiliates (other than the Company Entities, Material Joint Ventures or Other Joint Ventures) (“Intercompany Agreements”);
(xix) any Contract that provides for potential revenue to the Company Entities of $10 million or more over the term of the Contract;
(xx) any Contract involving a resolution or settlement of any Action where the amount paid in the resolution or settlement exceeds $20 million; or
(xxi) any Real Property Lease that is a lease, sublease or other occupancy agreement providing for the lease or sublease by a Company Real Property Lease with remaining obligations Entity of real property at an annual base rent in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries5 million.
(b) Each Contract of the type described above in Section 4.15(a)Sellers have made available to Buyer a true, whether correct and complete copy (including all amendments or not set forth in Section 4.15(amodifications thereto) of the Company Disclosure Schedule, is referred to herein as a “each Material Contract.” Except for . Each Material Contracts that have expired or terminated by their termsContract is a legal, all of the Material Contracts are (A) valid and binding on the agreement of one or more Company or Entities, and is in full force and effect, and is enforceable against the applicable Subsidiary of the Company, as the case may beCompany Entity party thereto, and, to the Knowledge knowledge of the CompanySellers, each other party thereto, and in accordance with the terms thereof (B) subject to the Remedies Exception). No Company Entity or, to the knowledge of Sellers, any other party is, or is alleged to be, in full force and effectmaterial default or breach under the terms of any such Material Contract, except (i) as may for any such defaults or breaches which would not reasonably be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notexpected to be, individually or in the aggregate, material to the Company Entities, taken as a whole. Without limitation of the foregoing, no Credit Agreement Default has occurred that would reasonably be expected to have result in a Company Material Adverse Effect. Neither the Company nor any Subsidiary failure of the Company hascondition set forth in Section 8.01(b)(iv); provided that, and, to the Knowledge solely for purposes of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default underthis Section 4.12(b), the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or following phrase shall be disregarded in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect anddefinition of Credit Agreement Default: “of which Sellers have, as of February 1such date of determination, 2021, to the (i) Actual Knowledge of the Company, neither the Company nor any Subsidiary of the Company has Sellers or (ii) received written notice of any of from the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary Administrative Agent (as applicable) or defined in the applicable Credit Agreement referenced in this clause (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effecta)).”
Appears in 2 contracts
Sources: Equity Purchase Agreement (Cameco Corp), Equity Purchase Agreement (Brookfield Business Corp)
Material Contracts. (a) Except (i) as filed as exhibits to Section 6.1(A)(t)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Allergan Disclosure Schedule sets forth a list as of the date hereof, neither the Company nor any Subsidiary of this Agreement of each of the Company is a party to or is bound by following Contracts (other than any Contract:
(iAllergan Benefit Plan) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Allergan or any of its Subsidiaries outside is a party or by which it is bound (each such Contract required to be so listed, and each of the ordinary course following types of business Contracts (other than any Allergan Benefit Plan) described below to which Allergan or any of its Subsidiaries becomes a party or by which it otherwise becomes bound after the date of this Agreement, an “Allergan Material Contract”):
(A) each (i) acquisition or divestiture Contract (including any Contracts pursuant to which any member of the Company Allergan Group has transferred or its Subsidiaries have material continuing obligations;
agreed to transfer ownership of any Intellectual Property) and (viiii) containing license (Aincluding any in-license or out-license and any sublicense), collaboration agreement or similar or equivalent Contract, that, in the case of each of clauses (i) and (ii), (x) has a covenant maximum potential value (or which otherwise requires the receipt or making of payments) in excess of $100 million (including pursuant to any “earn-out,” contingent value rights, milestone payments, license fees, royalty payments, development costs or other provision limiting in any material respect the ability of the Company contingent payment or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessvalue obligations), (By) “most favored nation”, “exclusivity” or similar provisions, (C) a right involves the issuance of first refusal or right any Equity Securities of first offer or similar right that limits the ability of the Company Allergan or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after following the date of this Agreement or (z) grants to any Person (other than any member of the Allergan Group) any right of first refusal, right of first negotiation, right of first offer, option to purchase, option to license, or any other similar rights with respect to any Allergan Product or any material Intellectual Property of Allergan;
(B) any Contract with any Governmental Entity that subjects is material to Allergan and its Subsidiaries, taken as a whole, and involving or that would reasonably be expected to involve payments to or from any Governmental Entity in an amount having a maximum potential value in excess of $100 million;
(C) any Contract that (x) limits or purports to limit, in any material respect, the Company freedom of Allergan or any of its Subsidiaries to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material ongoing requirements respect, the freedom of AbbVie or any of its Affiliates to take such actions after the Effective Time, (y) contains exclusivity or “most favored nation” obligations or restrictions (other than ordinary course confidentiality requirements that restrict or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating purport to any equity securities of the Company restrict Allergan or any of its Subsidiaries in any material respect or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time, (z) contains any other provisions materially restricting or purporting to materially restrict the ability of Allergan or any of its Subsidiaries to sell, market, distribute, promote, manufacture, develop, commercialize, test or research any Allergan Products through third parties or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time;
(D) any Contract relating to dispositionthird party indebtedness for borrowed money in excess of $100 million (whether incurred, voting assumed, guaranteed or dividends with respect to secured by any equity securities asset) of the Company Allergan or any of its Subsidiaries; or;
(xviE) is with an affiliate any Contract restricting Allergan or any of its Subsidiaries from (x) the payment of dividends (y) the making of distributions to shareholders or (z) the ability to repurchase or redeem Equity Securities;
(F) any joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research, development or other Person that would be required similar agreement, which is material to be disclosed under Item 404 the Allergan Group, taken as a whole;
(G) any Contracts or other transactions with any (A) executive officer or director of Regulation S-K Allergan, or (B) affiliate (as such term is defined in Rule 12b-2 promulgated under the Exchange Act) or “associates” (or members of any of their “immediate family”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act) of any such executive officer, other than director or beneficial owner;
(H) any Contract solely among involving the Company and its wholly-owned Subsidiaries.
settlement of any Action or threatened Action (bor series of related Actions) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding which (x) will involve payments by Allergan or any of its Subsidiaries after the date hereof, or involved such payments, in excess of $100 million or (y) will impose, or imposed, materially burdensome monitoring or reporting obligations by Allergan or any of its Subsidiaries outside the ordinary course of business or material restrictions on the Company Allergan or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of Allergan (or, following the Company hasCompletion, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, on AbbVie or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (AAbbVie) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.or
Appears in 1 contract
Sources: Transaction Agreement
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.01(n)(i) of the Company SEC Documents, (ii) for this Agreement and Letter sets forth a list of each of the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plansfollowing Contracts to which, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company or its Subsidiaries is a party or to or is bound by any which its assets are subject (each, a “Material Contract:”):
(iA) that is a each “material contract” (as such term is defined described in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC as determined as of the date of this Agreement, other than those agreements and arrangements described in Item 601(b)(10)(iii)) with respect to the Company;
(iiB) each Contract (1) that is with the ten includes obligations not to (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work that otherwise restricts or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect limits the ability of the Company or any Subsidiary of the Company to its Subsidiaries or affiliates to) compete or engage in any line of business or geographic area or (2) that includes obligations that restrict the ability of the Company or its Subsidiaries or affiliates to compete with any Person conduct business in any geographic area, ;
(C) each Contract (other than any customary employee non-solicitation Company Benefit Plan) providing for or no-hire clauses entered into resulting in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of payments by the Company or any of its Subsidiaries to sellthat exceeded $100,000 in the calendar year ended December 31, transfer2022, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material reasonably likely to the Company and its Subsidiariesrequire, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31remaining term of such Contract, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which annual payments by the Company or any of its Subsidiaries recognized revenues that exceed $100,000;
(D) all Contracts granting to any person an option or a first refusal, first offer or similar preferential right to purchase or acquire any material assets of the Company or its Subsidiaries;
(E) all Contracts (1) for the granting or receiving of a license, sublicense, covenant not to sue or similar right with respect to Company Intellectual Property material to the business of the Company and its Subsidiaries (2) under which any person is obligated to pay or has the right to receive a royalty, license fee, franchise fee or similar payment in which it is reasonably expected to pay or receive a royalty, license fee, franchise fee or similar payment in excess of $1,000,000 during 100,000, or (3) that materially restricts the fiscal year ended January 31Company’s or its Subsidiaries’ right to use or exploit any Company Owned Intellectual Property, 2024in each case of clause (1) and clause (2), other than agreements with employees, non-exclusive licenses granted to the Company’s or its Subsidiaries’ customers, and non-exclusive licenses to commercially available, off-the-shelf Software or information technology services that have been granted on standardized, generally available terms;
(xivF) that is a settlementall partnership, conciliation joint venture or other similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company agreements or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)arrangements;
(xvG) any stockholders’ agreementagreement with any director, proxy, voting trust agreement officer or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities stockholder of the Company or any of its Subsidiaries or Subsidiary;
(H) any agreement relating to dispositionindebtedness for borrowed money or the deferred purchase price of any asset or property (in either case, voting whether incurred, assumed, guaranteed or dividends secured by any asset), except any such agreement with respect to an aggregate outstanding principal amount not exceeding $100,000;
(I) any equity securities of agreement for the disposition or acquisition by the Company or any of its Subsidiaries; or
(xvi) is , with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) material obligations of the Company Disclosure Schedule, is referred or its Subsidiaries (other than confidentiality obligations) remaining to herein as a “Material Contract.” Except for Material Contracts that have expired be performed or terminated by their terms, all Liabilities of the Material Contracts are (A) valid and binding on the Company or its Subsidiaries continuing after the applicable Subsidiary date of the Companythis Agreement, as the case may be, and, to the Knowledge of the Company, each any business or any assets other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or than in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount ordinary course of business consistent with past practice;
(J) any agreement restricting or limiting the payment of dividends or the making of distributions to stockholders, including intercompany dividends or distributions other than such restrictions or limitations that are required by applicable Law; and
(K) all agreements with any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectGovernmental Entity.
Appears in 1 contract
Sources: Investment Agreement (SilverSun Technologies, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 2.14 of the date hereof, neither the Company nor any Subsidiary Disclosure Schedule sets forth a true and correct list of the Company is a party to or is bound by any Contract:following types of Assigned Contracts, other than the Lease Agreements, which are separately addressed in Section 2.12 (the “Material Contracts”):
(i) open orders that is a “material contract” (as such term is defined involve the performance of services or delivery of goods or materials by the Business providing for annual revenue to Seller in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$50,000;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, open purchase orders that involve the performance of services for, or statements delivery of work goods or invoices entered into materials to, the Business involving annual payments by the Business in the ordinary course excess of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$50,000;
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders collective bargaining agreements or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)contracts with any labor union covering any Employees;
(iv) that is agreements for the employment of any Employee on a Government Contractfull-time, part-time, consulting or other basis (A) providing annual cash or other compensation in excess of $50,000, or (B) providing for the payment of any cash or other compensation or benefits upon the consummation of the transactions contemplated hereby;
(v) evidencing a capital expenditure for which future payments are required in excess agreements relating to any Lien on any of $5,000,000the Purchased Assets;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect agreements that restrict the ability of the Company or any Subsidiary of the Company Business to compete or engage in any line of business or to compete with any Person;
(vii) joint venture or partnership agreements involving a sharing of profits, losses costs or liabilities by the Business with any third Person;
(viii) personal property leases under which the Business is the (A) lessee of tangible personal property owned by any other Person and involving annual rental payments in any geographic area, excess of $25,000 and (B) lessor of tangible personal property owned by Seller;
(ix) other than agreements for the sale of ball bearings by the Business on a purchase order basis to the Seller’s Optical Systems Group, and except as otherwise set forth in clauses (i) through (viii) above or in Section 2.14 of the Disclosure Schedule, agreements with, or loans to or from, any customary employee non-solicitation director, officer, Employee, agent or no-hire other Affiliate of Seller involving the Business or any Purchased Asset; and
(x) Contracts (except as otherwise set forth in clauses (i) through (ix) above or in Section 2.14 of the Disclosure Schedule) entered into other than in the ordinary course of business, (B) “most favored nation”, “exclusivity” business consistent with past practice or similar provisions, (C) a right of first refusal providing for annual payments by or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 Business in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries50,000.
(b) Each Contract Seller has made available to Purchaser a correct and complete copy of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “each Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of . With respect to the Material Contracts are Contracts, (Ai) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) Material Contract is in full force and effecteffect and is valid, except (i) as may be limited by bankruptcybinding and enforceable against Seller and, insolvencyto Seller’s Knowledge, moratorium and the other similar Applicable Law affecting creditors’ rights generally and by general principles of equity parties thereto in accordance with its terms, subject to the General Enforceability Exceptions, and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andneither Seller nor, to the Knowledge of the CompanySeller’s Knowledge, none of the any other parties thereto have, violated any provision Person is in material breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to set forth on Section 3.15 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Letter, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to to, or is bound by by, any of the following (each, a “Company Material Contract:”):
(i) any Contract that is a “material contract” (as such term is defined in Item 601(b)(10601(b)(1) of Regulation S-K of the Exchange Act);
(ii) that is with the ten any Contract relating to Indebtedness of any Person (10) largest customers of other than ordinary course arrangements among the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time periodwholly-owned Subsidiaries) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$25 million;
(iii) any Contract that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge compete in any line of business or otherwise dispose of assets, rights within any geographic area or properties or with any Person (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, than Contracts with such restrictions that is are not material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, conduct of the Company or any Subsidiary business of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole) or (B) contains any material exclusivity, most favored nation or similar provision;
(xiiv) that is a license (any Contract involving future payments, performance of services or a covenant, consent delivery of goods or other rights in materials to or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to by the Company and its Subsidiaries taken as a wholeof an amount or value reasonably expected to exceed $5 million in the aggregate during the twelve (12) month period following the date hereof;
(xiiv) that is any Contract entered into after January 1, 2015 involving the acquisition or disposition, directly or indirectly (by merger or otherwise), of assets (other than equipment or inventory in the ordinary course of business consistent with past practice) or capital stock or other equity interests of another Person for aggregate consideration (in one or a Company Real Property Lease with remaining obligations in excess series of transactions) under such Contract of $1,000,0005 million or more;
(xiiivi) that involves a material joint venture, profit sharing, partnership or similar agreement from which any Contract the Company or any termination of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither ;
(vii) any collective bargaining agreement or other Contract with any labor union or other employee representative or group;
(viii) any Contract with a Governmental Authority or pursuant to which the Company or any of its Subsidiaries provides good or services to any Governmental Authority, other than ordinary course goods or services offered to business, consumer or government customers.
(ix) 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 agreements or arrangements with respect to wholly owned Subsidiaries of the Company;
(x) Contracts by which the Company or any of its Subsidiaries obtains transmissions or programming for the channel line-up for each of its Cable Systems or its broadcast television stations that they own or operate (whether by antennae, microwave, satellite or otherwise) of video or audio programming or other cable or broadcast distributed information which require annual expenditures by the Company or any of its Subsidiaries in excess of $4 million, including all Contracts with respect to any network affiliation and all related agreements and any agreements related to the retransmission of any broadcast television stations to the extent such Contracts require annual expenditures in excess of $4 million;
(xi) pole attachment Contracts with annual rent payments in excess of $1 million;
(xii) any roaming or similar Contracts; and
(xiii) any Contract that commits the Company or any of its Subsidiaries to enter into any of the foregoing.
(b) As of the date hereof, the Company has made available to Liberty true, correct and complete copies of all Company Material Contracts, including all material amendments, additions, addenda, service orders or other modifications with respect thereto.
(c) Except as set forth or described on Section 3.15(c) of the Company Disclosure Letter, (i) neither the Company nor any Subsidiary of the Company has, andits Subsidiaries nor, to the Knowledge of the Company, none of the any other parties thereto haveparty to a Company Material Contract, violated any provision is in breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or in default under, the provisions of any Company Material Contract, except in each case for those violations, acts (ii) with respect to either the Company or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as any of February 1, 2021its Subsidiaries or, to the Knowledge of the Company, neither the any other party to a Company nor Material Contract, no event has occurred or circumstance exists which would result in a breach or violation of, or a default under, any Subsidiary Company Material Contract (in each case, with or without notice or lapse of time or both), and (iii) each Company Material Contract is valid and binding on each of the Company has received written notice and its Subsidiaries, as applicable, and each other party thereto and enforceable in accordance with its terms, subject to applicable bankruptcy, 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 any 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 foregoing. To Company and its Subsidiaries, as applicable, and to the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries each other thanparty thereto, in the case of each caseof the foregoing, other than as would not be reasonably be expected to have a Company Material Adverse Effect.
Appears in 1 contract
Sources: Agreement and Plan of Reorganization (Liberty Interactive Corp)
Material Contracts. (a) Except (iSection 3.09(a) as filed as exhibits to of the Company SEC DocumentsSeller Disclosure Schedules sets forth a true, (ii) for this Agreement complete and correct list of each of the other agreements entered into following Contracts in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, effect as of the date hereof, neither the Company nor any Subsidiary of hereof to which the Company is a party or by which the Company is otherwise bound (such Contracts, collectively, the “Material Contracts”), a true, complete and correct copy of each (including any amendments, waivers or supplements thereto) of which has been made available to or is bound by any ContractBuyer:
(i) that is each Contract with a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)Material Customer or Material Supplier;
(ii) each Contract that is with the ten (10) largest customers of requires the Company and to purchase its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received total requirements of any product or service from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders a third party or statements of work that contains “take or invoices entered into in the ordinary course of business, and other pay” or similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)covenants;
(iii) each Contract (A) that is with the ten (10) largest vendors of obligates the Company and its Subsidiaries during the fiscal year ended January 31, 2024 to conduct business with any third party on a preferential or exclusive basis or (as determined based on cost of goods and services paid to such vendors by the Company during such time periodB) (excluding any non-disclosure agreements, data processing agreements, purchase orders that contains “most favored nation” or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)covenants;
(iv) that is a Government Contracteach Contract relating to Indebtedness for borrowed money (including guarantees thereof), or evidencing any other Indebtedness in excess of $50,000;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating each Contract that limits or purports to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect limit the ability of the Company or any Subsidiary of its Affiliates (including, following the Company Closing, Buyer or any of its Affiliates after the Closing) to compete or engage in any line of business or to compete with any Person or in any geographic area;
(vi) each Contract to which the Company is a party that provides for any joint venture, strategic alliance, partnership or similar arrangement;
(vii) each Contract pursuant to which the Company grants or receives a material license with respect to Intellectual Property, other than any customary employee non-solicitation exclusive licenses granted (A) to the Company for the use of commercially available software or no-hire clauses entered into in the ordinary course information technology services on standard terms with an annual cost of businessless than $100,000, (B) to the Company on an “most favored nation”, “exclusivityopen source” or similar provisionsfree licensing arrangement, or (C) by the Company on standardized terms to its customers or end users in connection with permitting the use of the products or services of the Company;
(viii) each Contract pursuant to which the Company has paid or received payments in excess of $250,000 in fiscal years ended March 31, 2021, or is obligated to pay or entitled to receive payments in excess of $250,000 in the twelve (12)-month period following the date hereof;
(ix) each Company Lease;
(x) each Contract under which (A) the Company is lessee of, or holds, operates or uses, any machinery, equipment, vehicle or other tangible personal property owned by a third party or (B) the Company is a lessor or sublessor of, or makes available for use by a third party, any tangible personal property owned or leased by the Company, in each case, under which the Company has paid or received payments in excess of $50,000 in fiscal year ended March 31, 2021 or is obligated to pay or entitled to receive payments excess of $50,000 in the twelve (12)-month period following the date hereof;
(xi) each Contract that is a settlement or similar agreement restricting in any respect the operations or conduct of the Company;
(xii) each Contract (A) entered into since January 1, 2019 relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) or for the acquisition or disposition of the securities of or any assets (other than equipment or machinery) of any other person for consideration in excess of $50,000, (B) that contains a put, call or similar right pursuant to which the Company could be required to purchase or sell any equity or debt securities or (C) that contains indemnities or any “earnout” or other contingent payment obligations that would reasonably be expected to result in the receipt or making by the Company of future payments in excess of $250,000;
(xiii) each Contract providing for a loan or advance to, or an investment in, or a guarantee of the obligations of, any Person by the Company;
(xiv) each Contract providing for future capital expenditures in excess of $50,000;
(xv) each Contract that grants any right of first refusal or refusal, right of first offer or similar right with respect to any material assets, rights or properties of the Company, or that limits or purports to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of assets, rights any assets or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholebusiness;
(viiixvi) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement Person that is owned or (z) that subjects the Company or controlled by any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Governmental Authority; and
(xvxvii) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiarieseach Affiliate Agreement.
(b) Each Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of Company’s Knowledge, the Company, each other party thereto, parties thereto in accordance with its terms and (B) is in full force and effect, except (i) as may for such failures to be limited by bankruptcy, insolvency, moratorium valid and other similar Applicable Law affecting creditors’ rights generally binding or to be in full force and by general principles of equity and (ii) effect as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effectbe material to the Company. Neither the Company Company, nor any Subsidiary to the Knowledge of the Company, any other party to a Material Contract is in material breach of or default under such Material Contract, and no event, occurrence or condition exists (after notice or lapse of time or both) that would constitute a material breach or default by the Company has, andor, to the Knowledge of the Company, none any other party to a Material Contract. As of the other parties thereto havedate of this Agreement, violated (A) the Company has not received written notice from or on behalf of any provision ofthird party to a Material Contract indicating that such party intends to cancel, terminate, or committed not renew, the applicable Material Contract, (B) no party to a Material Contract has provided written notice of any present expectation or failed intention not to fully perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of material obligation pursuant to any Material Contract, except in each case for those violations(C) no party to a Material Contract has claimed a force majeure or other similar contractual remedy under (such as impossibility of performance, acts including as a result of COVID-19 or COVID-19 Measures) such Material Contract; and (or failures D) no party to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company Contract has received given written notice of any material dispute with respect to such Material Contract (including any alleged material breach or default by the Company of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectterms thereof).
Appears in 1 contract
Sources: Stock Purchase Agreement (American Eagle Outfitters Inc)
Material Contracts. (a) Except (iSchedule 3.31(a) as filed as exhibits sets forth a true, correct and complete list ---------------- of all contracts, commitments, licenses, agreements, obligations or binding arrangements, whether oral or written, to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as which Falcon or any of the date hereof, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party (or intends to become a party) or to which any of its assets or properties is bound by any Contractbound:
(i) that under which such Person is a “material contract” (as indemnified for or against any liability in excess of $50,000 or under which such term Person is defined or could be obligated to indemnify any Person in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$50,000;
(ii) that under which such Person leases personal property from or to third parties under capital leases which involve rental payments of at least $25,000 per annum or under operating leases which involve rental payments of at least $25,000 per annum;
(iii) for the purchase or sale of products or other personal property or for the furnishing or receipt of services (A) which calls for performance over a period of more than one (1) year and which involves payments of more than the $50,000 per year in the aggregate or (B) in which such Person has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from any Person;
(iv) (A) granting representation, marketing or distribution rights or (B) relating to Intellectual Property (including, without limitation, license, franchise, development or similar agreements other than those listed in response to item (xiv) below);
(v) under which such Person has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness in excess of $25,000;
(vi) establishing or maintaining any partnership, joint venture or strategic alliance;
(vii) under which there is with or may be imposed a security interest or other Lien on any of its assets, whether tangible or intangible, the ten net book value or fair market value of which is in excess of $50,000 (10) largest customers other than the security interests or Liens granted in favor of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 Collateral Agent);
(as determined based on revenue received from such customers during such time periodviii) (excluding concerning any confidentiality or non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices solicitation obligations entered into in outside the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiix) that under which such Person is with the ten (10) largest vendors of the Company and restricted from carrying on its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding business or any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equitypart thereof, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage from competing in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractPerson;
(x) that is a license (with officers, directors, employees, consultants or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary independent contractors of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesuch Person;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) involving any Affiliates of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesuch Person;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from under which the Company consequences of a default or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which termination would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect;
(xiii) under which such Person will (A) receive aggregate payments from customers, (B) make aggregate payments to vendors or other suppliers or (C) make or receive aggregate payments to or from any other Persons, in each case in excess of $50,000 per annum;
(xiv) which are franchise agreements or development agreements; and
(xv) not entered into in the ordinary course of business and not otherwise disclosed on Schedule 3.31
(b) in response to any ---------------- of the foregoing clauses. All of the contracts, commitments, licenses, agreements, obligations or arrangements described in clauses (i) through (xv) above, together with the Investment Documents, the Bank Credit Documents, the Subordinated Debt Documents and the Convertible Subordinated Debentures, the Real Property leases, subleases, licenses and other interests described in Section 3.35, whether entered into prior to, on or after the Closing Date, and the agreements with officers, are collectively referred to herein as the "MATERIAL CONTRACTS". The Borrowers have delivered or made available to the Lenders true and complete copies of each Material Contract in existence as of the date hereof.
Appears in 1 contract
Sources: Loan and Securities Purchase Agreement (Falcon Products Inc /De/)
Material Contracts. (a) Except Schedule 3.11 lists (without duplication), with respect to each of the Companies, all contracts and other agreements (or, in the case of oral contracts or agreements, summaries thereof) to which any of the Companies is a party or by, or to which, any of the Companies or any of their assets or properties is bound or subject (such contracts and agreements being "MATERIAL CONTRACTS") of the following types:
(i) as filed as exhibits any advertising, market research and other marketing agreements which contain firm commitments by any of the Companies to make annual payments in excess of $25,000 in any calendar year and which is not terminable on notice of ninety (90) days or less without the Company SEC Documents, payment of any termination fee or similar payment;
(ii) for this Agreement and the any employment, severance, non-competition, stock option agreement, restricted stock agreement, consulting or other agreements entered into in connection with any current or former stockholder, director, officer, sales associate, consultant or employee of any of the transactions contemplated hereby and (iii) for Company Employee PlansCompanies, under which any of the Companies has any material obligation as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding including any non-disclosure agreements, data processing agreements, purchase orders or statements competition agreements executed in favor of work or invoices entered into any of the Companies; in each case (other than independent contractor agreements with sales associates substantially in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesform attached hereto as Schedule 3.11(a)(ii);
). (iii) that is with the ten any agreements (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(viA) relating to the disposition Indebtedness, interest rate swap or acquisition of any businesshedging arrangements, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant sale and leaseback transactions or other provision limiting in any material respect similar financing transactions or (B) restricting the ability of the Company or any Subsidiary of the Company Companies to compete incur Indebtedness or engage in make any line of business loan or to compete with any Person in any geographic areaadvance or own, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessoperate, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assetsany assets owned by any of the Companies;
(iii) any agreements (A) relating to Indebtedness, rights interest rate swap or properties hedging arrangements, sale and leaseback transactions or other similar financing transactions or (DB) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation restricting the ability of any of the Company and its SubsidiariesCompanies to incur Indebtedness or make any loan or advance or own, operate, sell, transfer, pledge or otherwise dispose of any assets owned by any of the Companies;
(iv) any agreements with any Governmental Authority except those entered into in each case, that is the ordinary course of business which are not material to any of the Company Companies;
(v) any agreements relating to the purchasing of goods by, or the furnishing of services to, any of the Companies (A) requiring payments by the Companies in excess of $25,000 in any calendar year and its Subsidiaries(B) which are not terminable on notice of ninety (90) days or less without the payment of any termination fee or similar payment;
(vi) any contracts, taken as a wholeagreements and other arrangements for the furnishing of services by any of the Companies in exchange for payments in excess of $25,000 in any calendar year and which are not terminable on notice of ninety (90) days or less without the payment of any termination fee or similar payment;
(vii) any agreements (including settlement agreements and consent agreements) pursuant to which any of the Companies licenses the right to use any Intellectual Property to any Person or from any Person (other than off-the-shelf applications) or pursuant to which any Person has the right to acquire rights in Intellectual Property from any of the Companies;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, confidentiality agreements entered into by any of the Company or Companies during the period commencing two (2) years prior to the date of this Agreement pursuant to which any Subsidiary of the Company, or Companies was restricted from providing information to third parties and any guarantee by the Company or of its Subsidiaries agreements pursuant to which any of the obligations of Companies has agreed to provide any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and information regarding any of its wholly-owned Subsidiaries or between or among listings to any wholly-owned Subsidiaries of the Company)third party;
(ix) any hedgingshareholder, swap, derivative, voting trust or similar Contractagreements relating to the Business or any of the Companies to which any of the Companies or the Seller (or any Affiliate thereof) is a party and any joint venture, partnership or similar organizational documents or agreements to which any of the Companies is a party;
(x) that is a license (any agreements relating to the origination or a covenantbrokering of mortgage loans or relating to the provision of mortgage, consent escrow or title services by any of the Companies or relating to the purchase by any of the Companies of property pursuant to any guaranteed sales or other rights in or to use Intellectual Property) granted by the Company similar programs or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesettlement services;
(xi) that is a license (or a covenant, consent or other rights in or any Leases and any lease agreement with respect to use Intellectual Property) of Third Party Rights granted to the Company or personal property which requires any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant Companies to which the Company or any Subsidiary made make annual payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or 25,000 and which is not terminable upon notice of ninety (C90) that is otherwise material to days or less without the Company and its Subsidiaries taken as a wholepayment of any termination fee or similar payment;
(xii) any agreements that is a Company Real Property Lease with remaining obligations limit or purport to limit the ability of any of the Companies or any transferee of the Shares to compete in excess any business or to acquire, own, operate, sell, transfer, pledge or otherwise dispose of $1,000,000any assets or hire or solicit for employment any person;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or all agreements between any of its Subsidiaries recognized revenues the Companies, on the one hand, and any current or former shareholder, director, officer or other Affiliate of any of the Companies, on the other hand; and
(xiv) all other agreements, contracts or commitments which cannot be terminated upon notice of ninety (90) days or less and will require payments by any of the Companies of an amount in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with 25,000 in any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariescalendar year.
(b) Each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company obligation of, and enforceable against, one or the applicable Subsidiary more of the Company, as the case may beCompanies, and, to the Knowledge knowledge of the CompanySeller, each the other party parties thereto, and (B) is in full force and effect, except (i) as may be limited by effect subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and or other similar Applicable Law affecting laws relating to creditors’ ' rights generally and by to general principles of equity equity. The sales of the Shares and (ii) as would the Mortgage Shares pursuant to this Agreement will not, individually by themselves together with the transactions contemplated hereby and by the Related Agreements, give any Person the right to terminate or adversely modify any Material Contract. The Companies are not (and with the giving of notice or lapse of time would not be) in the aggregatematerial breach of, reasonably be expected to have a Company or default under, any Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, Contract and, to the Knowledge knowledge of the CompanySeller, none of the no other parties party thereto have, violated any provision is in breach of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge . None of the Company, neither the Company nor any Subsidiary of the Company Companies has received written notice of that any of party to a Material Contract intends to terminate such Material Contract prior to the foregoing. To the Knowledge of the Companytermination date specified therein, since February 1or that any other party is in material breach of, 2021or default under, no counterparty to any Material Contract has (A) canceled Contract. True and complete copies of all Material Contracts have been previously delivered or otherwise terminated, or threatened in writing made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectPurchaser.
Appears in 1 contract
Sources: Stock Purchase Agreement (St Joe Co)
Material Contracts. Except for the Contracts set out in Schedule 4.23 (a) Except (i) as filed as exhibits to the Company SEC Documents“Material Contracts”), (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company Corporation is not a party to or is bound by:
(a) 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 $100,000.00 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 Corporation;
(b) any Contract that expires, or may be renewed at the option of a Person other than the Corporation so as to expire, more than one year after the date of this Agreement;
(c) any rental agreement between the Corporation and its customers and clients;
(d) any financing or loan Contract pursuant to which the Corporation has extended a loan or other financing to any customer or client of the Corporation or any other third party;
(e) any promissory note, loan agreement or other Contract for the borrowing of money, any currency exchange, commodities or other hedging or swap arrangement or any leasing transaction of the type required to be capitalized in accordance with ASPE;
(f) any shareholder loan agreements or other Contracts pursuant to which the Shareholders, their Affiliates, or any employees of the Corporation have loaned money to the Corporation, including any loans made by the Shareholders, their Affiliates, or employees of Corporation for the benefit of the Corporation;
(g) any line of credit, credit card, or financing agreements, including any type of short-term or long-term financing facilities provided to the Corporation by any Contract:financial institution or other lenders;
(h) any Contract for capital expenditures in excess of $10,000.00 in the aggregate;
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any confidentiality or non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices Contract entered into other than in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid Ordinary Course or payable to any Contract limiting the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors freedom of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid Corporation to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to business, compete with any Person in Person, solicit any geographic areaPerson, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of operate its Subsidiaries to sell, transfer, pledge assets at maximum production capacity or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of restrict its ability to carry on the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeBusiness;
(viiij) relating any Contract pursuant to which the Corporation is a lessor or evidencing indebtedness for borrowed moneylessee of any of the Corporation’s assets including, debt securitieswithout limitation, warrants machinery, equipment, motor vehicles, office furniture, fixtures or other rights to acquire any debt securities, personal or real property outside the Ordinary Course of the Company Business;
(k) any Contract pursuant to which the Corporation is a lessor or lessee of any machinery, equipment, motor vehicles, office furniture, fixtures or other personal or real property;
(l) any Contract with an Affiliate of the Corporation or the Shareholders or any Subsidiary other Person with whom the Corporation or the Shareholders do not deal at arm’s length within the meaning of the CompanyTax Act;
(m) any agreement of guarantee, support, indemnification, assumption, endorsement, or any guarantee by similar commitment with respect to the Company obligations, liabilities (whether accrued, absolute, contingent or of its Subsidiaries of the obligations otherwise) or Indebtedness of any other Person;
(n) 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 (in each casewhether by merger, excludingsale of shares, for the avoidance sale of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries assets or between or among any wholly-owned Subsidiaries of the Companyotherwise);
(ixo) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent Contract relating to grants or other rights in or to use Intellectual Property) granted forms of assistance received by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement Corporation from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its SubsidiariesAuthority; or
(xvip) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, material to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually Business or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge Corporation Assets or any Contract made outside of the CompanyOrdinary Course. True, since February 1, 2021, no counterparty correct and complete copies of all Material Contracts have been provided to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSubscriber.
Appears in 1 contract
Material Contracts. (a) Except (iSchedule 4.6(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planssets forth a complete list, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the following Contracts (excluding any Employee Benefit Plan) to which a Group Company is a party to or is bound by any Contract:(the Contracts set forth on such Schedule, collectively, the “Material Contracts”):
(i) Contracts with the Group Companies’ vendors that is a “material contract” involved expenditures by the Group Companies of more than $100,000 for the twelve (as such term is defined in Item 601(b)(10) 12)-month period ended on December 31, 2015 or are reasonably expected to involve expenditures by the Group Companies of Regulation S-K of more than $100,000 for the Exchange Act)twelve (12)-month period commencing on January 1, 2016;
(ii) that is with Contracts relating to the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, Credit Arrangements and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Indebtedness with a principal amount outstanding greater than $250,000;
(iii) that is with Contracts prohibiting or restricting the ten (10) largest vendors ability of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Group Company or any of its Subsidiaries outside of the ordinary course of business pursuant Affiliates to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or engage any other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete service providers or engage in any line of business or to compete with any Person in any geographic geographical area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viiiiv) relating to joint venture Contracts, partnership agreements or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person limited liability company agreements with a third party (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-other than with respect to wholly owned Subsidiaries of the Company);
(v) Contracts pursuant to which any Group Company grants or receives a license to use any Group Company IP Rights (other than licenses for commercially-available software or involving annual payments to or from the Group Companies that do not exceed $150,000 per year);
(vi) Contracts that require any Group Company to dispose of or acquire any assets or properties valued in excess of $500,000 after the date hereof, or any merger or business combination with respect to any Group Company;
(vii) Contracts that constitute an interest rate cap, interest rate collar, interest rate swap or other contract or agreement relating to a hedging transaction;
(viii) Contracts that constitute an agreement under which any Group Company has purchased or sold real property and such Group Company has uncompleted financial obligations in excess of $250,000 or material obligations to indemnify a third party that have not expired;
(ix) Contracts that require any hedging, swap, derivativeGroup Company to make any re-prorations or adjustments to previously paid prorations with respect to any Owned Real Property that would reasonably be expected to result in the loss of future payments to, or similar Contractan obligation to make payments by, any such Group Company of more than $250,000;
(x) that is Contracts under which a license (or Person other than a covenant, consent or other rights in or Group Company provides property management services to use Intellectual Property) granted by the a Group Company or any Subsidiary of the under which a Group Company provides property management services to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, a Person other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeGroup Company;
(xi) Contracts that is constitute a license loan to any Person (or other than a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any wholly-owned Subsidiary of the Company) by any Group Company (A) on in an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 amount in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;250,000; or
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends Contracts with respect to any equity securities of the transactions between a Group Company or any of its Subsidiaries; or
(xvi) is with and an affiliate or other Person that would be Affiliate required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesset forth on Schedule 4.18.
(b) Each Contract of the type described above in Section 4.15(aExcept as set forth on Schedule 4.6(b), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, each Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the applicable Group Company or the applicable Subsidiary of the Company, as the case may be, and enforceable in accordance with its terms against such Group Company and, to the Knowledge of the Company, each other party thereto, and thereto (B) in full force and effect, except (i) as may be limited by subject to applicable bankruptcy, insolvency, reorganization, moratorium and or other similar Applicable Law Laws affecting generally the enforcement of creditors’ rights generally and by subject to general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contractequity), except in each case for those violationswhere any such invalidity, acts (failure to be binding or failures to act) and defaults which, individually non-enforceability is not or in the aggregate, would not reasonably be expected to have be material to the Group Companies, taken as a Company Material Adverse Effect whole. Except as set forth on Schedule 4.6(b), each Group Company, and, as of February 1, 2021, to the Knowledge Company’s Knowledge, each of the Companyother parties thereto, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty performed all obligations required to any be performed by it under each Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that except where any such counterparty presently engages in non-performance is not or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to be material to the Group Companies, taken as a whole.
(c) No Group Company is a party or is subject, directly or indirectly, to any Tax Protection Agreement that will survive the Closing or that would require payments thereunder in connection with the consummation of the Merger and the other transactions contemplated hereunder. As used herein, a “Tax Protection Agreement” is an agreement that has as one of its purposes to permit a Person to take the position that such Person could defer federal taxable income that otherwise might have been recognized upon a Material Adverse Effecttransfer of property to a Group Company that is treated as a partnership for federal income tax purposes, and that (i) prohibits or restricts in any manner the disposition of any assets of a Group Company, (ii) requires that any Group Company maintain, put in place, or replace, indebtedness, whether or not secured by any Owned Real Property, or (iii) requires that any Group Company offer to any Person at any time the opportunity to guarantee or otherwise assume, directly or indirectly (including through a “deficit restoration obligation,” guarantee (including a “bottom dollar” guarantee), indemnification agreement or other similar arrangement (including a “bottom dollar” reimbursement agreement)), the risk of loss for federal income tax purposes for indebtedness or other liabilities of any Group Company.
(d) No Group Company has guaranteed the Indebtedness of any Person that is not a Group Company.
Appears in 1 contract
Material Contracts. The Company has delivered or made available to Purchaser a true and complete copy of each written Contract that is of a type described below (collectively, the "COMPANY MATERIAL CONTRACTS"):
(a) Except any Contract for capital expenditures or the acquisition or construction of fixed assets in excess of $250,000.00 per annum;
(ib) as filed as exhibits any Contract for the purchase or lease of goods or services (including without limitation, equipment, materials, software, hardware, supplies, merchandise, parts or other property, assets or services), requiring aggregate future payments in excess of $250,000.00 per annum, other than standard inventory purchase orders executed in the ordinary course of business;
(c) any Contract relating to the Company SEC Documentsborrowing of money or guaranty of indebtedness;
(d) any collective bargaining or other arrangement with any labor union;
(e) any Contract granting a first refusal, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as first offer or similar preferential right to purchase or acquire any of the date hereofCompany's capital stock or assets;
(f) any Contract limiting, neither restricting or prohibiting the Company nor from conducting business anywhere in the United States or elsewhere in the world or any Subsidiary Contract limiting the freedom of the Company is a party to engage in any line of business or is bound by to compete with any other Person;
(g) any joint venture or partnership Contract:;
(h) any written employment Contract, severance agreement or other similar binding agreement or policy with any officer or employee; and
(i) any Contracts requiring future payments of $250,000.00 or more per annum which are not otherwise described in clauses (a) though (h) above. The Company has also delivered or made available to Purchaser a copy of the Company's form of independent contractor agreement. Each Company Material Contract is a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms, subject only to bankruptcy, reorganization, receivership or other laws affecting creditors' rights generally and general principles of equity (whether applied in an action at law or in equity). The Company is in compliance with all obligations required to be performed by it under the Company Material Contracts, and the Company is not and, to the Knowledge of the Company, no other party to a Company Material Contract is, in breach or default thereunder in any material respect. Each Contract of the Company that is a “"material contract” (" as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of SEC has been filed in the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable SEC Reports prior to the date hereof. The Company is not a party to any written or its Subsidiaries);
(iii) that is oral customer contract with the ten (10) largest vendors revenues of the Company and its Subsidiaries during the fiscal over $150,000 per year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of requires the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities penalty upon termination of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariessuch contract.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Merger Agreement (Cd&l Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into disclosed in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 3.10 of the date hereofSeller Disclosure Schedule, neither the Company nor any Subsidiary none of the Company Acquired Entities is a party to or is bound by any Contract (including any Government Contract:) currently in effect and of the following nature (all such Contracts required to be disclosed by this Section 3.10, collectively, the “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) pursuant to which, the Company or any of Regulation S-K of its Subsidiaries incurred Indebtedness exceeding $1,000,000 for which any Acquired Entity will be liable following the Exchange Act)Closing;
(ii) that is with (A) involve the ten performance by the Acquired Entities of services of an amount or value (10) largest customers of as measured by the Company and its Subsidiaries revenue derived therefrom during the fiscal year ended January 31September 28, 2024 2013) in excess of $1,000,000 annually or (B) involve payments by the Acquired Entities in excess of $1,000,000 annually, unless, in the case of clauses (A) and (B), terminable by the Acquired Entities on not more than 60 days’ notice without material penalty;
(iii) which involve, as determined based parties thereto, any Acquired Entity on revenue received the one hand, and any of the directors, officers or other Affiliates of any Acquired Entity (other than any other Acquired Entity), on the other hand exceeding $250,000;
(iv) which prohibits any Acquired Entity from such customers during such time periodfreely engaging in any material business;
(v) that relates to the future disposition or acquisition of material assets or properties by any Acquired Entity except in the ordinary course of business, or any merger or business combination with respect to any other Person;
(vi) requiring or providing for any capital expenditure in excess of $1,000,000;
(vii) for the employment of any officer, individual employee or other person on a full-time, part-time, consulting or other basis providing annual base salary or consulting fees in excess of $250,000 (other than any “at-will” contract that may be terminated by any party thereto upon thirty (30) days or less advance notice);
(viii) under which any Acquired Entity leases, or is provided with the right to hold or operate, any tangible property (other than real property), owned by any other Person, except for any lease or agreement under which the aggregate annual rental payments do not exceed $250,000;
(ix) under which any Acquired Entity leases, or permits any third party to hold or operate, any tangible property (other than real property), owned or controlled by the Company, except for any lease or agreement under which the aggregate annual rental payments do not exceed $250,000;
(x) which establish a joint venture, strategic alliance or material partnership;
(xi) which involve the license or grant of rights to Intellectual Property material to the Business but excluding (1) any noninbound agreements that have individual acquisition costs of $250,000 or less relating to “shrink wrap”, “click wrap” and similar generally available end-disclosure agreementsuser licenses to software, data processing agreements, purchase orders or statements (2) any outbound agreements that involve consideration of work or invoices entered into less than $250,000 over the twelve (12) months prior to the date of this Agreement; (3) any nonexclusive license to Owned Intellectual Property granted in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii4) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements or Company employee agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;; and
(xii) that is a Company each Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesLease.
(b) Each Contract As of the type described above date of this Agreement, (i) each Material Contract is in Section 4.15(a)full force and effect, whether or not set forth in Section 4.15(a) and is a valid and binding obligation of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other Acquired Entities party thereto, and (B) in full force and effectto Seller’s Knowledge, except (i) as may be limited by bankruptcy, insolvency, moratorium and each other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and party thereto; (ii) as would not, individually the applicable Acquired Entity is not in material breach or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision material violation of, or committed material default under any such Material Contract; (iii) no Material Contract has been terminated in writing by any other party thereto; (iv) to Seller’s Knowledge, no other party is in material breach or failed to perform any act undermaterial violation of, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, any Material Contract; and (v) no Acquired Entity has given a written notice of its intent to terminate, modify, amend or otherwise materially alter the provisions terms and conditions of any Material Contract, except in each case for those violations, acts (Contract or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received any written notice claim of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to default under any Material Contract Contract. The Seller has (A) canceled furnished or otherwise terminatedmade available to Purchaser true and complete copies of all Material Contracts, or threatened in writing including any amendments to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContracts.
Appears in 1 contract
Sources: Purchase Agreement (Hennessy Capital Acquisition Corp.)
Material Contracts. (a) Except (i) as filed as exhibits Section 2.10 of the Disclosure Schedule sets forth a correct and complete list of all Contracts that are material to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansCompanies’ Business, as it is presently conducted and proposed by the Companies to be conducted (collectively, the “Material Contracts”). Without in any way limiting the generality of such term, the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any ContractMaterial Contracts include:
(i) each Contract providing for the performance of services or delivery of goods or materials by or to customers of or suppliers to any of the Companies that provides for consideration to be furnished to or by any of the Companies of value in excess of one hundred thousand dollars ($100,000) during calendar year 2009 (after giving effect to automatic, customary or routine renewals to any such Contract), in each case identifying each such Contract that is with a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)sole source supplier;
(ii) each lease or sublease or other rental or occupancy Contract involving aggregate payments in excess of twenty-five thousand dollars ($25,000) during calendar year 2009;
(iii) each licensing or other Contract granting the Companies, or pursuant to which the Companies has granted to any Person, the right to use Intellectual Property that is with material to the ten (10) largest customers operation of the Company and its Subsidiaries during Business;
(iv) each Contract to make a capital expenditure in excess of fifty thousand dollars ($50,000) with respect to the fiscal year ended January 31Business;
(v) each Contract to sell, 2024 lease or otherwise dispose of any assets or properties of the Companies in excess of fifty thousand dollars (as determined based on revenue received from such customers during such time period$50,000) (excluding any non-disclosure agreementsin the aggregate, data processing agreements, purchase orders or statements other than sales of work or invoices entered into inventory in the ordinary course of business;
(vi) each collective bargaining agreement with any labor union or other employee representative of a group of employees relating to wages, hours and other similar Contracts that are ancillary to Contracts pursuant conditions of employment;
(vii) each joint venture agreement, partnership agreement or limited liability company agreement to which revenue any of the Companies is paid a party;
(viii) each Contract that limits the right of the Companies to compete in any industry or payable geographic area;
(ix) each Contract that obligates any of the Companies to clean up or remediate any Hazardous Substances;
(x) each Contract relating to the Company acquisition or its Subsidiariesdisposition of any business, or any operating division, business unit or product line thereof (whether by merger, consolidation, reorganization, acquisition of assets or otherwise);
(iiixi) that is with the ten (10) largest vendors all Contracts relating to Indebtedness of the Company and its Subsidiaries during Business, or pursuant to which any of the fiscal year ended January 31Companies guarantees, 2024 (as determined based on cost indemnifies or otherwise agrees to support the obligations of, any other Person, other than trade payables incurred by any of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into Companies in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete consistent with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholepast practice;
(xii) that is a Company Real Property Lease all Contracts with remaining obligations in excess employees, independent contractors or consultants of $1,000,000;any of the Companies; and
(xiii) each other Contract not otherwise listed pursuant to the preceding clauses (i) through (xii), that involves a material joint venture, profit sharing, partnership creates future payment or similar agreement from which the Company or performance obligations by any of its Subsidiaries recognized revenues the Companies that requires consideration to be furnished to or by any of the Companies of value in excess of fifty thousand dollars ($1,000,000 50,000) during the fiscal calendar year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company 2009 or any of calendar year thereafter, respectively and which by its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or terms is not terminable by any of its Subsidiaries the Companies on ninety (90) days’ notice or less without penalty to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesCompanies.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) is a valid and binding on the Company or the applicable Subsidiary obligation of the CompanyCompanies, as enforceable against the case may be, Companies and, to the Knowledge Companies’ Knowledge, the other parties thereto, subject to the Equitable Exceptions. Except as set forth on Section 2.10(b) of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the CompanyDisclosure Schedule, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a Companies is in breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021Contract nor, to the Knowledge Companies’ Knowledge, is any other party thereto in breach thereof. The Sellers have supplied to the Purchaser complete and accurate copies of each of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContracts.
Appears in 1 contract
Sources: Purchase Agreement (Global Telecom & Technology, Inc.)
Material Contracts. (a) Except Section 3.11(a) of the Disclosure Schedules sets forth a correct and complete list, organized by the categories set forth below, of each of the following Contracts (ior a description of the material terms thereof, in the case of oral Contracts) to which the Corporation is a party or by which it or any of its properties, rights or assets are bound and which, except as filed as exhibits to the Company SEC Documentsotherwise provided below, (ii) for this Agreement and the other agreements entered into are in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of effect on the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) any Contract that is a “material contract” or is reasonably likely to require expenditures (as such term is defined in Item 601(b)(10including capital expenditures) of Regulation S-K of or payments to or from the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required Corporation in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not50,000, individually or in the aggregate, reasonably in any calendar year, other than those that can be expected terminated without premium or penalty by the Corporation upon not more than sixty (60) days’ notice;
(ii) all Contracts involving any material resolution or settlement of any actual or threatened, litigation, arbitration, claim or other dispute;
(iii) all Contracts which contain restrictions with respect to have a Company Material Adverse Effect. Neither the Company nor payment of dividends or any Subsidiary other distribution in respect of the Company hasEquity Interests of the Corporation;
(iv) all Contracts pursuant to which the Corporation has an obligation to make an investment in or loan to any Person, andin each case, other than in the ordinary course of the origination or loan servicing businesses of the Corporation consistent with past practice;
(v) any Contract under which the Corporation is obligated to sell or lease as lessor real or personal property having a value in excess of $50,000 in any single given annual period;
(vi) any Contract that contains a covenant not to compete applicable to the Knowledge Corporation or any of its Affiliates by virtue of such affiliation or that binds the Corporation to any exclusive business arrangements or licenses;
(vii) any Contract granting a customer of the CompanyCorporation “most favored nation” or similar terms (whether in respect of pricing or otherwise);
(viii) any management, none distributor, consultant, representative, financial advisory, broker or similar type of Contract and any Contract with any investment or commercial bank, that is not terminable by the Corporation at will and without liability;
(ix) any joint venture, partnership, strategic alliance or teaming Contract or other similar co-ownership or joint management agreements involving a sharing of profits, losses, costs or liabilities by the Corporation with any Person (other than the Corporation);
(x) any Contract under which the Corporation has (A) created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) (x) indebtedness for borrowed money, including, without limitation Warehouse Facilities and/or any financing arrangements with respect to the Servicing Rights and Servicing Advances of the other parties thereto have, violated any provision ofCorporation (“Existing Financing Facilities”), or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or bothy) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults other Indebtedness which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect andexceeds $50,000, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially granted a Lien, other than Permitted Liens, on its assets, whether tangible or threatened intangible, to decrease materially secure Indebtedness or limit materially(C) extended credit to any Person;
(xi) any Affiliate Contract and any Contract between Seller or its Related Persons, on the amount one hand, and any employee, on the other hand;
(xii) any collective bargaining, labor or similar Contract and any Contract between the Corporation and any third party provider of employee management services, including employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development.
(xiii) any Contract related to Intellectual Property used in the operation of the Corporation’s business, other than unmodified, commercially available, off-the-shelf, shrink-wrap, click-wrap or non-exclusive software licenses with an aggregate value of less than $100,000;
(xiv) any Contract with any Agency or Governmental Entity (whether as prime contractor, subcontractor or otherwise), including any performance bonds or similar arrangements related thereto;
(xv) any stock purchase, asset purchase, merger, consolidation or other acquisition or divestiture agreement relating to the acquisition, lease, license, disposition or consolidation by the Corporation of assets (other than in the ordinary course of business that consistent with past practice), properties, rights or any capital stock or other Equity Interests of any Person (x) providing for any indemnification, guaranty or surety obligation of the Corporation or (y) with a fair market value in excess of $50,000;
(xvi) any Contract relating to the establishment, management or control of any joint venture or strategic alliance;
(xvii) any Servicing Agreement;
(xviii) any Subservicing Agreement;
(xix) any Warehouse Facility not disclosed under subsection (x) above to which the Corporation was a party at any time since January 1, 2010;
(xx) any Interest Rate Protection Agreement or Other Hedging Agreement to which the Corporation is currently a party, together with a description of the dollar amount, counterparty, collateral, and maturity of any such counterparty presently engages in agreement;
(xxi) any Contract with an Investor to which the Corporation is currently a party or, since January 1, 2010 was a party, providing for the sale by the Corporation to such Investor of one or presently conducts with more Mortgage Loans originated by the Company and its Subsidiaries other than, in each case, as Corporation;
(xxii) any Contract the termination of which would not reasonably be expected to have a Material Adverse Effect; and
(xxiii) any outstanding written commitment to enter into any Contract of the type described in subsection (i) through (xxii) of this Section 3.11(a). All Contracts set forth in Section 3.11(a) of the Disclosure Schedules and any Contract required to be set forth therein, but omitted therefrom are referred to herein as “Material Contracts.” The Corporation has made available to Buyer a correct and complete copy of each Material Contract (including any and all amendments and other modifications to such Contract).
(b) Each Material Contract is in full force and effect and is the legal, valid and binding obligation of the Corporation, and is enforceable against the Corporation in accordance with its terms (subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other laws of general application affecting the rights and remedies of creditors and general principles of equity) and, to the Knowledge of the Corporation, is the legal, valid and binding obligation of the other parties thereto (the “Other Parties”), and neither the Corporation nor, to the Knowledge of the Corporation, any of the Other Parties to any Material Contract is in breach, violation or default, and no event has occurred which with notice or lapse of time or both would constitute a breach, violation or default by any such party, or permit termination, modification or acceleration by the Other Parties, under such Material Contract.
(c) The Corporation has not waived any material right it may have under any Material Contract. No party has provided any written or oral notice of any intention to terminate, materially modify or accelerate any Material Contract.
(d) Except as set forth in Section 3.11(d) of the Disclosure Schedules, no consent of any other party to any Material Contract is required in connection with the performance of this Agreement.
Appears in 1 contract
Material Contracts. (a) Except (iSection 3.15(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Disclosure Schedule sets forth as of the date hereof, neither the Company nor any Subsidiary hereof a list of the Company following Contracts (excluding any intercompany Contracts among Seller and its Affiliates that are not Transferred Contracts) that primarily relate to the DCB Business and to which a member of the Covidien Group is a party party, true and correct copies of which Seller has made available to or is bound by any Purchaser (each, a “Material Transferred Contract:”):
(i) that each lease or other Contract under which a member of the Covidien Group is a “material contract” (as such term is defined lessee of, or holds or operates, any machinery, equipment, vehicle or other tangible personal property owned by a third party that requires rental payments in Item 601(b)(10) excess of Regulation S-K of $200,000 per annum or $500,000 in the Exchange Act)aggregate;
(ii) that each Contract with any DCB Employee requiring payments of base salary in excess of $150,000 per annum, other than any Contract which by its terms is with the ten (10) largest customers cancelable by a member of the Company Covidien Group with notice of not more than thirty (30) days (or such longer period as required by Law) and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders without cancellation penalties or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)severance payments;
(iii) each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee in respect of indebtedness for borrowed money or any agreement that is with the ten creates a material Encumbrance (10other than a Permitted Encumbrance) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Purchased Asset;
(iv) that is a Government Contracteach customer Contract requiring payments to the Covidien Group with respect to DCB Products in excess of $100,000 per annum or $500,000 in the aggregate;
(v) evidencing a capital expenditure for which future each outstanding Contract with vendors requiring payments are required by the Covidien Group with respect to DCB Products in excess of $5,000,000100,000 per annum or $500,000 in the aggregate;
(vi) relating each Contract materially restricting the ability of Seller to the disposition engage in any business or acquisition of compete with any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;Person; and
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar venture Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any and material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesjoint product development Contract.
(b) Each Contract of the type described above Except as disclosed in Section 4.15(a), whether or not set forth in Section 4.15(a3.15(b) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsthe Knowledge of Seller, all each Transferred Contract set forth on Section 3.15(a) of the Material Contracts are (A) Disclosure Schedule is a valid and binding on the Company or the applicable Subsidiary obligation of a member of the CompanyCovidien Group, as enforceable against such member of the case may be, Covidien Group in accordance with its terms and, to the Knowledge of the CompanySeller, each other party thereto, and (B) in full force and effect, except (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other or similar Applicable Law Laws affecting creditors’ rights generally and or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law), and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary neither such member of the Company has, andCovidien Group nor, to the Knowledge of the CompanySeller, none of the any other parties thereto haveparty thereto, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a is in material breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that under any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectTransferred Contract.
Appears in 1 contract
Material Contracts. Section 3.01(w) (aMaterial Contracts) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is Disclosure Letter sets forth a party to complete list of all currently effective written or is bound by any Contractoral:
(i) agreements, arrangements or obligations to which the Company or any of its Subsidiaries is a party that is would constitute a “material contract” under Item 6.01 of Regulation S-K under the Securities Act and the Exchange Act;
(ii) agreements, arrangements or other obligations relating to indebtedness owed by the Company or any of its Subsidiaries;
(iii) stockholders agreements relating to Equity Securities of the Company or equity securities of any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party;
(iv) employment, severance and non-compete agreements or arrangements of the Company or any of its Key Subsidiaries (A) with any executive officer (as such term is defined in Item 601(b)(10Rule 3(b)(7) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company or any Key Subsidiary (and its Subsidiaries during for this purpose such Key Subsidiary shall be deemed the fiscal year ended January 31, 2024 “registrant” for purposes of Rule 3(b)(7)) or (as determined based on revenue received from such customers during such time periodB) in excess of two hundred fifty thousand Dollars (excluding $250,000) per annum each (or the equivalent in any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariescurrency);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;; and
(v) evidencing a capital expenditure for other agreements, arrangements and obligations to which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing is a party that (A) a covenant or other provision limiting in any are material respect the ability of to the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areaand its Subsidiaries, other than any customary employee non-solicitation or no-hire clauses taken as a whole, even if entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in were entered into outside the ordinary course of business, and/or business or (C) that is otherwise material are not on arm’s-length terms. With respect to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (each agreement, arrangement or a covenant, consent or other rights in or obligation to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Key Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlementparty or to which any of their respective properties are subject (the “Company Agreements”), conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require neither the Company or nor any of its Subsidiaries nor, to pay consideration of more than $1,000,000 after the date of this Agreement Company’s Knowledge, any other party is in breach or (z) that subjects the Company or any of its Subsidiaries to default in any material ongoing requirements respect. No event has occurred which, with notice or restrictions lapse of time or both, would: (other than ordinary course confidentiality requirements A) constitute a breach or restrictions);
(xv) default in any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with material respect to any equity securities of by the Company or any of its Subsidiaries; , or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company’s Knowledge, each by any such other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a relevant Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) Agreement; or (B) decreased materially permit termination, modification or threatened to decrease materially acceleration of or limit materially, under the amount of business that any such counterparty presently engages in or presently conducts with the relevant Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAgreement.
Appears in 1 contract
Sources: Subscription Agreement (Net 1 Ueps Technologies Inc)
Material Contracts. (ab) Except (iSection 2.13(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party Disclosure Schedule sets forth an accurate and complete list (arranged in paragraphs corresponding to or is bound by any Contract:
the numbered paragraphs contained in this Section 2.13(a)) of the following Contracts (i) that is each such Contract required to be set forth, a “material contract” (as such term is defined in Item 601(b)(10Material Contract”) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party:
(i) all customer Contracts, including, without limitation, all license, development, maintenance, support and professional services Contracts, that (i) provides for the payment to the Company or any Company Subsidiary of $50,000 or more following the date of this Agreement, or (ii) that deviates from the customary form of the Company ▇▇▇▇ or customary Maintenance Agreement;
(ii) all Contracts under which the Company or any Company Subsidiary is obligated to provide any maintenance, support or professional services with respect to any Company Products that are no longer marketed by the Company or any Company Subsidiary;
(iii) all Contracts with suppliers and service providers of the Company or any Company Subsidiary that involve the performance of services for, or delivery of goods or materials to, the Company or any Company Subsidiary under which the Company or any Company Subsidiary is obligated to make payments of more than $50,000 following the date of this Agreement, excluding Contracts with any employees and independent contractors engaged on a full-time basis;
(iv) all Contracts involving a loan (other than accounts receivable owing from trade debtors in the ordinary course of business pursuant business) or advance to which (other than travel and entertainment advances to the Employees 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;
(v) all Contracts involving Company Indebtedness or granting or evidencing a Lien on any property or asset of the Company or any of its Subsidiaries have material continuing obligationsSubsidiaries;
(vi) all Contracts under which any Person (other than the Company) has directly or indirectly guaranteed Company Indebtedness;
(vii) containing all Contracts with any Governmental Entity;
(viii) all Contracts involving the lease of real property (“Lease Agreements”);
(ix) all Contracts for the lease of any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property involving the payment of more than $15,000 over the term of the Contract;
(x) all financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(xi) all Contracts (A) a covenant limiting or other provision limiting in any material respect purporting to limit the ability of the Company or any Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person or in any geographic geographical area, (B) granting or purporting to grant any exclusive rights to any Person or limiting in any respect the right of the Company or any Company Subsidiary to make use of any Company Intellectual Property, including any "covenant not to ▇▇▇" clauses, (C) containing any exclusive licensing obligations, (D) containing any future royalty payments, or (E) containing any “most favored nation” or “most favored customer” terms;
(xii) other than employment Contracts, all Contracts between the Company and any customary employee non-solicitation of its Subsidiaries on the one hand and any stockholder, officer, director, Affiliate of the Company, any Company Subsidiary or no-hire clauses entered into any family member thereof on the other hand;
(xiii) all Contracts (including letters of intent) relating to or involving the disposition or acquisition of assets, properties, capital stock or other equity interests of any other Person, or any merger, consolidation or similar business combination transaction, whether or not enforceable, but excluding the purchase of assets in the ordinary course of businessbusiness for less than $25,000;
(xiv) all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement or joint development;
(Bxv) “most favored nation”all Contracts with distributors or representatives of the Company or any Company Subsidiary that have generated or expected to generate annual revenues in excess of $50,000 (excluding Contracts with Employees and independent contractors engaged on a full time basis, “exclusivity” in sales on behalf of the Company or similar provisionsany Subsidiary);
(xvi) all Contracts involving any resolution or settlement of any actual or threatened litigation or arbitration in the past two (2) years;
(xvii) all Collective Bargaining Agreements;
(xviii) all Contracts to which the Company or any Company Subsidiary is a party or by which it is bound and under which the Company or any Company Subsidiary is granted or provided any rights, or permitted any uses, of Intellectual Property or Intellectual Property Rights by a third party, other than: (Ci) Contracts for licenses to Shrink-Wrapped Code that are not royalty bearing; and (ii) Open Source Licenses or CopyLeft Software licenses.
(xix) all Contracts (i) containing a right of first refusal or right of first offer or similar right that limits the ability of grant by the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose a Person of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) any right relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of under the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted grant to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues of any right relating to or under the Intellectual Property or Intellectual Property Rights of any Person involving anticipated annual gross revenue or expense in excess of $1,000,000 during 20,000, other than agreements with customers for the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority sale and/or licensing of Products entered into since February 1, 2021, in the ordinary course of business (yincluding Contracts for “off-the-shelf” software) which would require and (ii) regarding development of Intellectual Property or Technology for the Company or any of its Subsidiaries to pay consideration in excess of more than $1,000,000 after the date of this Agreement or 5,000; and
(zxx) that subjects the Company or All Contracts containing any of its Subsidiaries provisions which are triggered by, and all Contracts entitling any Person to any material ongoing requirements right of notice, novation, waiver, authorization, consent or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Companyapproval, as the case may be, andin connection with, to the Knowledge a change-in-control of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Company Subsidiary (as applicable) or (B) decreased materially the consummation of the transactions contemplated by this Agreement. For the purpose of this subsection, "Change-in-Control" shall not include any notice, novation, waiver, authorization, consent or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each caseapproval, as would not reasonably be expected the case may be, required solely in the event of assignment of the applicable Contract to have a Material Adverse Effectthird party unless the provision includes assignment by "operation of law" or similar wording.
Appears in 1 contract
Sources: Merger Agreement (Attunity LTD)
Material Contracts. (a) Except (iHoldco is not party to any Contract that would constitute a Material Contract except as set forth in Section 3.09(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither Disclosure Schedules. Section 3.09(a) of the Company nor any Subsidiary Disclosure Schedules lists each of the following Contracts of the Company is a party to (such Contracts, together with all Contracts concerning the occupancy, management or is bound by operation of any Contract:Real Property (including without limitation, brokerage contracts) listed or otherwise disclosed in Section 3.10(b) of the Disclosure Schedules and all Company IP Agreements set forth in Section 3.12(b) of the Disclosure Schedules, being “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers each Contract of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for involving aggregate consideration in excess of $5,000,000 100,000 and which, in each case, cannot be cancelled by the Company without penalty or without more than ninety (90) days’ notice;
(ii) all Contracts that require the Company to purchase its total requirements of any product or service from a third party or that contain “take or pay” provisions, in each case the value over the life of its Subsidiaries outside the Contract is in excess of $100,000;
(iii) all Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax, environmental or other Liability of any Person, in each case other than Contracts (i) entered in the ordinary course of business pursuant consistent with past practice and that do not provide indemnification by the Company or assumption of Liabilities for an unlimited amount or (ii) with potential liability for an amount less than $100,000;
(iv) all Contracts that relate to the acquisition or disposition of any business or assets of any other Person or any real property (whether by merger, sale of stock, sale of assets or otherwise), in each case involving amounts in excess of $100,000, or any stock of any other Person;
(v) 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;
(vi) all employment agreements and Contracts with independent contractors or its Subsidiaries have consultants (or similar arrangements) to which the Company is a party and which involve annual payments in excess of $100,000 and which are not cancellable without material continuing obligationspenalty or without more than ninety (90) days’ notice;
(vii) containing except for Contracts relating to trade receivables, all Contracts relating to Indebtedness of the Company;
(Aviii) all Contracts with any Governmental Authority to which the Company is a covenant party (“Government Contracts”);
(ix) all Contracts that limit or other provision limiting in any material respect purport to limit the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person or in any geographic areaarea or during any period of time;
(x) any Contracts to which the Company is a party that provide for any joint venture, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” partnership or similar provisions, arrangement by the Company;
(Cxi) a right of first refusal all Contracts between or right of first offer or similar right that limits the ability of among the Company on the one hand and Seller or any Affiliate of its Subsidiaries any Seller Party on the other hand;
(xii) all collective bargaining agreements or Contracts with any Union to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of which the Company and its Subsidiaries, in each case, is a party; and
(xiii) any other Contract that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) not previously disclosed pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesSection 3.09.
(b) Each Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, and each Contract to which Holdco is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) party is valid and binding on the Company or the applicable Subsidiary of the CompanyHoldco, as the case may beapplicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in subject to the aggregate, reasonably be expected to have a Company Material Adverse EffectEnforceability Exception. Neither the Company nor any Subsidiary None of the Company has, andor Holdco or, to the Knowledge Seller’s Knowledge, any other party thereto is in breach of the Company, none or default under (or is alleged to be in breach of the other parties thereto have, violated any provision ofor default under), or committed has provided or failed received any notice of any intention to perform terminate, any act under, and no Material Contract or any Contract to which Holdco is a party. No event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute a breach an event of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to under any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary Contract to which Holdco is a party 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 copies of each Material Contract and each Contract to which Holdco is a party (as applicableincluding all modifications, amendments and supplements thereto and waivers thereunder) or (B) decreased materially or threatened have been made available to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectBuyer.
Appears in 1 contract
Sources: Stock Purchase Agreement (Nuverra Environmental Solutions, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 5.15 of the date hereof, neither the Company nor any Subsidiary Sellers’ Disclosure Schedule sets forth all of the Company is following Contracts to which the Sellers are a party to or is by which the Sellers are bound and that are related to, used in or held for use in the Business or by any Contract:which the Purchased Assets may be bound or affected (collectively, the “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)▇▇▇ Agreements;
(ii) that is Contracts with the ten (10) largest customers any current or former officer, director, stockholder or Affiliate of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Sellers;
(iii) that is with Contracts for the ten (10) largest vendors sale of any of the Company and assets of the Sellers or for the grant to any person of any preferential rights to purchase any of its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)assets;
(iv) that is a Government ContractContracts for joint ventures, strategic alliances or partnerships;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all Contracts containing covenants of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company Sellers not to compete or engage in any line of business or to compete with any Person in any geographic geographical area or covenants of any other Person not to compete with the Sellers in any line of business or in any geographical area;
(vi) Contracts relating to the acquisition by the Sellers of any operating business or the capital stock of any other Person;
(vii) Contracts relating to the incurrence, other than assumption or guarantee of any customary employee non-solicitation Indebtedness or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) imposing a right of first refusal or right of first offer or similar right that limits the ability of the Company or Lien on any of its Subsidiaries to sell, transfer, pledge assets exceeding $10,000 individually or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of $25,000 in the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeaggregate;
(viii) relating Contracts under which the Sellers have made advances or loans to or evidencing indebtedness for borrowed money, debt securities, warrants or any other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Person;
(ix) Contracts providing for severance, retention, change in control or other similar payments to any hedging, swap, derivative, or similar ContractBusiness Employee;
(x) that is Contracts for the employment of any individual on a license (full-time, part-time or a covenant, consent consulting or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (Contracts for the provision of goods or a covenantservices, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or including any Subsidiary of the Company (A) on an exclusive basissystem operator agreements, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company support center services agreement and its Subsidiaries taken as a wholeMDU sub provider agreements;
(xii) that is a Company Real Property Lease with remaining obligations Contracts (or group of related contracts) which involve the expenditure of more than $10,000 annually or $25,000 in excess of $1,000,000the aggregate or require performance by any party more than one year from the date hereof;
(xiii) any Intellectual Property Licenses other than licenses to computer software that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024are commercially available;
(xiv) that is a settlementall non-disclosure, conciliation confidentiality, or similar Contract non-solicitation agreements between (xA) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or Sellers and any of its Subsidiaries to pay consideration of more than $1,000,000 after current or former employees, consultants or agents, and (B) the date of this Agreement or (z) that subjects the Company or Sellers and any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Person; and
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating Contracts that are otherwise material to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesBusiness.
(b) Each Material Contract of is in full force and effect and is the type described above in Section 4.15(a)legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or obligation of the applicable Subsidiary of the CompanySeller, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and subject, as the case may beto enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). No Seller is in material default under any Material Contract, and, to the Knowledge of the CompanySellers, each no other party theretoto any Material Contract is in material default thereunder. To the Seller’s Knowledge, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach of or default under, the provisions of under any Material Contract, except in each case for those violations, acts (or failures . No party to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoingMaterial Contracts has exercised any termination rights with respect thereto. To The Sellers have delivered or otherwise made available to the Knowledge Purchaser true, correct and complete copies of all of the CompanyMaterial Contracts, since February 1together with all amendments, 2021, no counterparty to any Material Contract has (A) canceled modifications or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectsupplements thereto.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Schedule 3.7 of the date hereof, neither the Company nor any Subsidiary of the Seller Disclosure Letter lists each Material Contract to which a Target Company is a party and under which either a Target Company or any other party thereto has unperformed material obligations or unsatisfied material liabilities as of the Effective Date and the Closing Date. The following Contracts, and no others, will be deemed to or is bound by be “Material Contracts”: any Contract:Contract that
(ia) is an employment agreement with any current or former employee pursuant to which a Target Company has any actual or contingent obligation to provide compensation and/or benefits after the Closing Date in consideration for past, present or future services; provided, that is a “material contract” for the avoidance of doubt, such agreements do not include employment offer letters solely for at-will employment which provide for nothing other than cash compensation (as such term is defined in Item 601(b)(10other than incentive compensation or severance obligations) payable to employee up to the date of Regulation S-K termination of the Exchange Act)employment;
(iib) that provides for the payment or receipt by a Target Company of more than $150,000 per year, including any such Contracts with customers or clients;
(c) is a Real Property Lease;
(d) obligates a Target Company to make capital expenditures with respect to which the ten remaining unpaid balance is in excess of $150,000;
(10e) largest customers expressly restricts the ability of a Target Company to compete in any manner or place or solicit, engage or hire any Person;
(f) relates to the borrowing of money or guarantee by a Target Company and its Subsidiaries during the fiscal year ended January 31or to mortgaging, 2024 pledging or otherwise placing a Lien on any of their assets;
(as determined based on revenue received from such customers during such time periodg) (excluding grants an option or a right of first refusal, right of first-offer or similar preferential right to purchase or acquire any non-disclosure agreementsmaterial asset of a Target Company, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiih) that is with the ten (10) largest vendors of grants a license or sublicense by a Target Company to a third party under the Company Intellectual Property, other than Contracts that involve total payments that do not exceed $100,000 in the aggregate;
(i) grants a license or sublicense by a third party to a Target Company, but not including licenses to (i) commercially available “off-the-shelf” software, and its Subsidiaries during (ii) freeware or open source programs;
(j) is a joint venture or partnership agreement or similar Contract that provides for the fiscal year ended January 31, 2024 sharing of any profits;
(as determined based on cost k) relates to the sale or purchase of goods and services paid to such vendors by the Company during such time period) (excluding material assets or capital stock of any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into Person other than inventory in the ordinary course of the business, and other similar Contracts that are ancillary to Contracts pursuant to which cost or provides for a dissolution, merger, consolidation, business combination, sale of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, stock or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationssimilar extraordinary transaction involving a Target Company;
(viil) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete is with any Person in any geographic area, other than any customary employee non-solicitation labor union or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeassociation;
(viiim) relating relates to the lease of any material asset to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights from any Target Company under which the lessee is required to acquire any debt securities, of the Company or any Subsidiary of the pay more than $150,000 per year;
(n) is a Tax sharing agreement involving a Target Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person ;
(in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or o) is a Contract between or among any wholly-owned Subsidiaries Target Company, on the one hand, and any Seller, Affiliate of any Seller or any officer or director of any Target Company, on the Company);
(ix) other hand, except for any hedging, swap, derivativeContract arising out of, or similar Contract;
(x) that is relating to, such persons employment with a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its SubsidiariesTarget Company; or
(xvip) is with an affiliate any bond or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the surety arrangement. The Material Contracts are (A) valid and binding on obligations of a Target Company enforceable in accordance with their terms (except that (i) such enforcement may be subject to any bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other laws, now or hereafter in effect, relating to or limiting creditors’ rights generally and (ii) enforcement of such Contracts, including, among other things, the Company or remedy of specific performance and injunctive and other forms of equitable relief, may be subject to equitable defenses and to the applicable Subsidiary discretion of the Companycourt before which any proceeding therefor may be brought). No material breach or default, as the case may bealleged material breach or default, andor, to the Knowledge of the CompanySellers, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as event which would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without noticethe passage of time, lapse of time notice or both) would constitute a material breach of or default under, the provisions of any under a Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have Contract by a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Target Company has received written notice of any of the foregoingoccurred and is continuing. To the Knowledge of the Company, since February 1, 2021Sellers, no counterparty other party to any a Material Contract has (A) canceled is in material breach or otherwise terminateddefault under such Material Contract. True, correct and complete copies of all Material Contracts have been made available to Buyer or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectParent.
Appears in 1 contract
Material Contracts. (aExcept as expressly disclosed in Section 1(h) Except (i) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansPerfection Certificate, as of the date hereof, neither the Company nor any Subsidiary of the Company Closing Date no Loan Party is (a) a party to any contract which has had or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not could reasonably be expected to have a Material Adverse EffectEffect or (b) in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (x) any contract to which it is a party or by which any of its assets or properties is bound, which default, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or result in liabilities in excess of $200,000 or (y) any Material Contract. Except for the contracts and other agreements listed in Section 1(h) of the Perfection Certificate, no Loan Party is party, as of the Closing Date, to any (i) collective bargaining, works council, shop, enterprise or recognition agreement or other Contract with any Union, (ii) any employment agreement, (iii) contract relating to (A) Indebtedness, (B) the PPP Loan or (C) the mortgaging, pledging or otherwise placing of an Lien (other than Permitted Liens) on any Loan Party’s assets, (iv) lease or agreement under which it is the lessee of, or holds or operates any personal property owned by any other party, or lease or agreement under which it is the lessor of or permits any third party to hold or operate any Loan Party property, real or personal, (v) contract, other than purchase orders entered into in the Ordinary Course of Business, (A) with the twenty-five (25) customers and twenty-five (25) suppliers/vendors of the Loan Parties that have purchased from or sold to, as applicable, the Loan Parties the most products or services (based upon consideration received/paid by the Loan Parties) since January 1, 2019, (B) for the purchase or sale of materials, supplies, merchandise, equipment, parts or other property or services with other customers or suppliers requiring aggregate future payments in excess of $10,000, or (C) any guaranty of any obligation described in clauses (A) and (B), (vi) contract for capital expenditures or the acquisition or construction of fixed assets for the benefit and use of the Loan Parties, the performance of which involves unpaid commitments or liabilities in excess of $50,000, (vii) contract (A) for the acquisition (by merger or otherwise) of any business or securities of another Person or all or substantially all of the of the assets of another Person or (B) for the disposition of the assets or of any business enterprise of any Loan Party other than dispositions of inventory and products of the Loan Parties in the Ordinary Course of Business, in each case that is the source of any surviving rights, obligations or other provisions, (viii) license, sublicense, consent to use agreement, settlement, coexistence agreement, covenants not to ▇▇▇, permission or other contract pursuant to which a Loan Party grants rights to any third party or receives a grant of rights from any third party to use any Intellectual Property material to the operation of the business of a Loan Party, other than agreements relating to off-the-shelf commercially available software available for an annual or one time license fee of less than $10,000 in the aggregate, (ix) contract that requires a Loan Party to purchase its total requirements of any product or service from a third party or that contain “take or pay” provisions, (x) material broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting or advertising contract, (xi) contract with any Governmental Authority, (xii) contract that limits the ability of a Loan Party to compete in any line of business or with any Person or in any geographic area or during any period of time, (xiii) contract that provides for any joint venture, partnership or similar arrangement by the Company; or any other contract involving aggregate consideration in excess of $50,000 and which, in each case, cannot be cancelled by the Loan Party without penalty or without more than 90 days’ notice. (each such contract and agreement, described in the preceding clauses (i) to (xiii), a "Material Contract"). Each Material Contract listed on Schedule 7.18 is in full force and effect (except to the extent terminated after the Closing Date) and there are no events of defaults thereunder or any event which with notice or passage of time, or both, would constitute a material event of default thereunder.
Appears in 1 contract
Material Contracts. (a) Except Schedule 3.16 contains a list of all material contracts, agreements and commitments (whether written or oral) to which any Company or any Subsidiary is, directly or indirectly, a party (in its own name or as a successor in interest), or by which it or any of its properties or assets is otherwise bound, in each case that is in effect on the Agreement Date (collectively, the “Contracts”), including the following: (i) as filed as exhibits all franchise, dealer, or other distribution agreements pursuant to the Company SEC Documents, which any of them sells or otherwise distributes its products or services; (ii) for this Agreement and the all supply contracts, construction contracts, or other such agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts understandings pursuant to which revenue is paid any of them purchased in 2007, or payable expects to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31purchase in 2008, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
50,000 in products or services; (viiii) relating to any agreement involving the disposition licensing of Intellectual Property or acquisition the payment of royalties; (iv) any business, equity, or all or substantially all consulting agreement providing for total remaining payments by any of the assets of any Person for aggregate consideration them in excess of $5,000,000 by the Company 50,000, (v) an agreement that would restrict a Company’s or any of its Subsidiaries outside of the ordinary course of Subsidiary’s ability to compete in any business pursuant to which the Company in any location, (vi) agreements concerning a partnership or its Subsidiaries have material continuing obligations;
joint venture; (vii) containing any guaranty or undertaking to be liable for the debts of others; (Aviii) a covenant any letters of credit; (ix) any agreement relating to ownership of or other provision limiting investments in any material Person (including investments in joint ventures and minority equity investments); (x) any agreement relating to business acquisitions or dispositions entered into since January 1, 2007, including any not yet consummated; (xi) any resale or collocation agreements with any communications carriers; (xii) contracts for the sales of any capital asset in excess of $50,000; (xiii) contract for capital expenditures in excess of $100,000, outside the Ordinary Course of Business; (xiv) any written warranties, guaranties or similar undertakings with respect the ability of the to contractual performance extended by a Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course Ordinary Course of business, Business; (Bxv) “most favored nation”, “exclusivity” or similar provisions, (C) contracts terminable by any other party upon a right change of first refusal or right control of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary or upon failure of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary to satisfy financial or performance criteria; (xvi) any employment agreement containing provisions of severance, otherwise limiting any Company or Subsidiary to terminate such agreement or the employment of the Company individual under such agreement, or providing rights or benefits to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the employee in the event of a change of control of any Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (zxvii) powers of attorney that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesare currently in effect.
(b) Each Contract True and complete copies of the type described above in Section 4.15(a), whether Contracts (or not a true and compete narrative description of any oral Contract) previously have been made available to the Buyer. Except as set forth in Section 4.15(a) on Schedule 3.16, none of the Company Disclosure ScheduleCompanies, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsthe Subsidiaries, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, andnor, to the Knowledge of the CompanySeller, each any other party thereto, and (B) in full force and effect, except to any of the Contracts (i) as may be limited by bankruptcyis in default under (nor does there exist any condition that, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually with notice or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) , would constitute cause such a breach of or default under) any of the Contracts, or (ii) has waived any right it may have under any of the provisions Contracts. All of any Material Contract, except in each case for those violations, acts (or failures to act) the Contracts constitute valid and defaults which, individually or in the aggregate, would not reasonably be expected to have binding obligations of a Company Material Adverse Effect andand/or its Subsidiaries, as of February 1enforceable in accordance with their respective terms, 2021, and to the Knowledge of Seller, of the Companyother parties thereto. For purposes of inclusion on Schedule 3.16, neither a Contract shall be deemed material if it requires the payment by, or to, any Company nor any or its Subsidiary of the Company has received written notice of $50,000 or more during any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has twelve (A12) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectmonth period.
Appears in 1 contract
Material Contracts. (a) Except (iSchedule 5.13(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as sets forth all of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party to or by which it is bound by any Contract:(collectively, the “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K Contracts with Parent, Seller or any current officer, director or employee of the Exchange Act)Parent, Seller or the Company;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to under which the Company is or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect will after the ability of the Company or any Subsidiary of the Company to compete or engage Closing be restricted from competing in any line of business or to compete with any Person in any geographic area, other than geographical area or soliciting or hiring any customary employee non-solicitation person;
(iii) any joint venture or no-hire clauses entered into in partnership Contract;
(iv) Contracts for the ordinary course sale of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right any of first refusal or right of first offer or similar right that limits the ability assets of the Company or other than in the Ordinary Course of Business, for consideration in excess of $50,000;
(v) Contracts relating to any of its Subsidiaries acquisition to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of be made by the Company and its Subsidiariesof any operating business or the capital stock of any other Person, in each case, that is material case for consideration in excess of $100,000;
(vi) Contracts relating to the Company and its Subsidiariesincurrence of Indebtedness, taken as a wholeor the making of any loans, in each case involving amounts in excess of $100,000;
(vii) Contracts providing for severance, retention, change in control or other similar payments;
(viii) relating to Contracts which involve the expenditure of more than $100,000 in the aggregate or evidencing indebtedness for borrowed moneyrequire performance by any party more than one year from the date hereof that, debt securitiesin either case, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee are not terminable by the Company without penalty on notice of 180 days’ or less, except for purchase orders issued in the Ordinary Course of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Business;
(ix) any hedging, swap, derivative, or similar Contractadvertising sales representative agreements providing for third parties to receive commissions upon sales by the Company;
(x) any contract regarding the development, ownership or use of material Intellectual Property (including material licenses to or from third parties, but other than commercial off the shelf software, as the terms is commonly understood);
(xi) Website hosting agreements and co-location facility agreements with any third party;
(xii) any Contract under which real time user updates and other social media communications, end user profiles and other data information is supplied or otherwise made available to the Company; and
(xiii) any Agreement, the consequences of default or termination of which could cause a Material Adverse Effect.
(b) Except as set forth on Schedule 5.13(b), the Company has not received any written notice of any material default or event that is with notice or lapse of time, or both, would constitute a license (or a covenant, consent or other rights in or to use Intellectual Property) granted material default by the Company or any Subsidiary other party under any Material Contract. As of the Company to Company Intellectual Property (A) on an exclusive basisdate hereof, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all each of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcyand there exists no default or event of default or event, insolvencyoccurrence, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notcondition or act, individually or in the aggregate, reasonably be expected with respect to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, or to the Knowledge of the CompanyCompany with respect to the other contracting party, none which, with the giving of notice, the lapse of the time or the happening of any other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition existscondition, which (with would become a material default or without notice, lapse event of time or both) would constitute a breach of or default under, the provisions of under any Material Contract. True, except in each case for those violations, acts (correct and complete copies of all Material Contracts have been delivered or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, made available to the Knowledge Purchaser.
(c) With respect to the fifteen (15) largest advertisers of the Company, neither as measured by the dollar amount of ad purchases therefrom for cash for the fiscal year ended December 31, 2011 (the “Material Advertisers”), the Company nor is not involved in any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Companymaterial claim, since February 1, 2021, no counterparty to any Material Contract has (A) canceled dispute or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship controversy with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAdvertiser.
Appears in 1 contract
Material Contracts. (a) Except Section 3.11 of the Seller Disclosure Schedule lists all Contracts described in clauses (i) as filed as exhibits through (xiii) below that relate primarily to the Company SEC Documents, (ii) for this Agreement US Wireless Sales Business to which the Seller is a party or pursuant to which the Transferred Assets are otherwise bound and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planswhich have not, as of the date hereof, neither the Company nor any Subsidiary been terminated or fully performed ("MATERIAL CONTRACTS"). A true, correct and complete copy of the Company is a party each such Material Contract has been made available to or is bound by any Contract:Buyer.
(i) that is any Contracts providing for a “material contract” (as such term is defined commitment of employment or consultation services requiring payments in Item 601(b)(10) any one year in excess of Regulation S-K of the Exchange Act)$100,000;
(ii) that is any Contracts with any Person containing any provision or covenant prohibiting or materially limiting the ten ability of Seller to engage in any business activity or compete with any Person;
(10iii) largest customers any Contracts pursuant to which any Lien (other than Permitted Liens) has been imposed on any Transferred Assets;
(iv) any Contracts (other than this Agreement) providing for (i) the future disposition or acquisition of any of the Company and its Subsidiaries during the fiscal year ended January 31Transferred Assets, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders other than dispositions or statements of work or invoices entered into acquisitions in the ordinary course of businessbusiness of Inventory or of assets having a fair market value of $50,000 or less, and (ii) any merger or other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to business combination involving the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government ContractUS Wireless Sales Business;
(v) evidencing a capital expenditure for any Contract the terms of which future payments are required in excess of $5,000,000include express provisions regarding confidentiality;
(vi) relating any Contract for the lease of personal property or Equipment constituting a Transferred Asset to the disposition or acquisition of any business, equity, or all or substantially all of the assets of from any Person which provides for aggregate consideration lease payments in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations100,000 per year;
(vii) containing (A) a covenant any Contract that limits or other provision limiting in any material respect contains restrictions on the ability of Seller to incur or suffer to exist any Lien, to purchase or sell any assets, to change the Company lines of business in which it participates or any Subsidiary of the Company engages or to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” merger or other contingent, deferred or fixed payment obligation of the Company business combination and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken which are included as a wholeAssumed Liabilities;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or any other rights to acquire any debt securities, Contracts (excluding outstanding warranty obligations of the Company or any Subsidiary of Seller) that (A) involve the Companypayment, or any guarantee by pursuant to the Company or of its Subsidiaries of the obligations terms of any Person such Contract, (1) by Seller of more than $50,000 annually or (2) to Seller of more than $200,000 annually and (B) cannot be terminated within ninety (90) days after giving notice of termination without resulting in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries material cost or between or among any wholly-owned Subsidiaries of the Company)penalty to Seller;
(ix) any hedgingContract concerning the issuance of a permit, swapfranchise or license which is material to the US Wireless Sales Business requiring an annual payment of $100,000 or more in fees, derivative, royalties or similar Contractotherwise by Seller;
(x) any Contract the particulars of which are required to be furnished to any competition or regulatory authority and any undertaking that is a license (has been given or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) order made pursuant to which the Company any competition legislation or in response to any Subsidiary received licensing revenues request for the fiscal year ended January 31, 2024 in excess information or statement of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeobjection from any Governmental Authority;
(xi) that is a license (any bid, tender, proposal or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basisoffer which, if pursuant accepted, will result in Seller becoming a party to any agreement or arrangement in which the Company aggregate payments to be received or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of paid by Seller would exceed $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole500,000;
(xii) that is any Contract not otherwise described in any of clauses (i) through (xi) above under which the consequences of a Company Real Property Lease with remaining obligations in excess of $1,000,000default or termination could reasonably be expected to have Seller Material Adverse Effect;
(xiii) that involves a any material joint venture, profit sharing, partnership or similar agreement from which the Company or amendment to any of its Subsidiaries recognized revenues the Contracts described in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesSection 3.11.
(b) Each Material Contract of the type described above is legal, valid, binding and enforceable by and against Seller in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their accordance with its terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, except to the Knowledge of the Companyextent such enforceability may be limited by applicable bankruptcy or other laws affecting creditors' rights, each other party theretoor by general equity principles, and (B) is in full force and effect, except (i) as may effect on the date hereof. Such Material Contracts are fully performable by Seller in accordance with their terms. Seller has performed all material obligations required to be limited performed by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected it to have a Company date under each such Material Adverse Effect. 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 any provision of, or committed or failed to perform any act underContract, and no is not in material default under any such Material Contract. No event has occurred which, with due notice or condition exists, which (with or without notice, lapse of time or both) , would constitute a breach of or material default under, the provisions of under any such Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021Seller, no counterparty other party to any such Material Contract is in material default of any Material Contract and no event has (A) canceled occurred which, with due notice of lapse of time or both, would constitute such a default, and otherwise terminated, there are no grounds for the termination or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount cancellation of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract by Seller.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansSchedule 4.20 sets forth a list, as of the date hereof, neither the Company nor any Subsidiary of all currently effective Contracts of the Company is in the following categories (excluding Contracts between the Company, on the one hand, and Seller or any of its Affiliates (excluding the Company) on the other hand, which will be terminated at or prior to the Closing in accordance with Section 9.12):
(a) each partnership agreement or joint venture agreement;
(b) each Contract under which the Company has (i) incurred any Indebtedness or created any security interest pursuant to any Indebtedness, in each case having an outstanding principal amount in excess of two hundred and fifty thousand Dollars ($250,000), or (ii) an obligation to make an investment in or loan to any Person in excess of two hundred and fifty thousand Dollars ($250,000);
(c) each Contract for the purchase by the Company of goods or services involving total annual payments in excess of five hundred thousand Dollars ($500,000), other than for purchases pursuant to purchase or service orders;
(d) each Contract for the sale by the Company of goods or services involving total annual revenues in excess of two hundred and fifty thousand Dollars ($250,000), other than for the sale of Products pursuant to purchase orders;
(e) each Contract containing covenants materially restricting or limiting the freedom of the Company to engage in any line of business;
(f) each Contract under which a third party has a right to share in any profits of the Company;
(g) each Contract with Seller or is bound by any Contract:of its respective Affiliates;
(h) each Contract requiring the Company to make capital expenditures in excess of two hundred and fifty thousand Dollars ($250,000) in the aggregate other than pursuant to purchase or service orders;
(i) that is a “material contract” each Contract obligating the Company to pay royalties, license fees, rent or similar payments involving amounts in excess of two hundred and fifty thousand Dollars (as such term is defined $250,000) in Item 601(b)(10any consecutive twelve (12)-month period;
(j) each Contract relating to the settlement of Regulation S-K any dispute under which the Company has ongoing monetary obligations in excess of the Exchange Acttwo hundred and fifty thousand Dollars ($250,000);
(iik) each written employment or consulting agreement with any current director, officer or employee that is an Assumed Benefit Plan that is not terminable without notice or cost or which requires an annual payment of base cash compensation in excess of one hundred thousand Dollars ($100,000) for each Person;
(l) each Collective Bargaining Agreement;
(m) each Contract with any current officer or director, other than any employment or consulting agreement with such officer or director;
(n) each Contract for the ten (10) largest customers sale of any material assets of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is business consistent with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business past practice pursuant to which the Company has any material remaining obligations (other than customary confidentiality and non-disclosure obligations or its Subsidiaries have material continuing obligationscustomary covenants to provide reasonable access to books and records);
(viio) containing each Contract relating to the acquisition by the Company of any operating business or any other Person (Awhether by merger, sale of stock, sale of assets or otherwise) a covenant or other provision limiting in pursuant to which the Company has any material respect the ability of the Company remaining obligations (other than customary confidentiality and non-disclosure obligations or any Subsidiary of customary covenants to provide reasonable access to books and records);
(p) each Contract that requires the Company to compete purchase its total requirements of any product or engage in any line service from a third party or that contains “take or pay” provisions;
(q) each Contract that provides for the indemnification by the Company of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of express assumption by the Company or of any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” environmental or other contingent, deferred or fixed payment obligation Liabilities of the Company and its Subsidiaries, in each case, any Person; and
(r) any other Contract that is material to the Company and its Subsidiariesnot previously disclosed pursuant to this Section 4.20. Except as set forth on Schedule 4.20 or as would not be material to the Company, taken as (i) each Contract required to be listed on Schedule 4.20 is (A) a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary valid and binding obligation of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force to the Company’s Knowledge, a valid and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and binding obligation of each other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and party thereto; (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither neither the Company nor any Subsidiary of the Company has, andnor, to the Knowledge of the Company’s Knowledge, none of the any other parties party thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a is in breach of or default under, and the provisions Company has not provided or received any written notice of an alleged breach of or default under, or any Material Contractintention to terminate, except in each case for those violationsany Contract listed on Schedule 4.20, acts and (iii) no event or failures to act) and defaults whichcircumstance has occurred that, individually with notice or in the aggregatelapse of time or both, would not reasonably be expected to have a constitute an event of default by the Company Material Adverse Effect under any Contract listed on Schedule 4.20, and, as of February 1, 2021, to the Knowledge Company’s Knowledge, no event or circumstance has occurred that, with notice or lapse of time or both, would (x) constitute an event of default by any other party thereto, (y) result in termination thereof or (z) would cause or permit the Company, neither acceleration or other changes in any respect of any right or obligation or the Company nor loss of any Subsidiary of the benefit thereunder. The Company has received written notice delivered or made available to Buyer true, correct and complete copies of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty all Contracts required to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectset forth on Schedule 4.20.
Appears in 1 contract
Material Contracts. (a) Except (iSchedule 3.13(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement sets forth an accurate and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as complete list of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party and by which it is currently bound or pursuant to which the Company's business is subject or is bound in respect of which assets, rights or properties are held for use by the Company by any Contractother Person:
(i) that is a “material contract” (as such term is defined all Contracts which contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)capital stock or other equity interests of the Company;
(ii) that is with the ten all Contracts relating to capital expenditures or other purchases of material, supplies, equipment or other tangible assets or properties (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders for inventory or statements of work or invoices entered into supplies in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)business consistent with past practice) in excess of $20,000 individually;
(iii) that is with the ten all Contracts involving a loan (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than accounts receivable from trade debtors in the ordinary course of businessbusiness consistent with past practice) or advance to (other than travel and entertainment allowances to the employees of the Company extended in the ordinary course of business consistent with past practice), and other similar Contracts that are ancillary or investment in, any Person or any Contract relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by the Company)investment;
(iv) that is a Government Contractall Contracts involving Indebtedness of the Company;
(v) evidencing a capital expenditure for all Contracts (including so called take-or-pay or keep-well agreements) under which future payments are required in excess any Person (other than the Company) has directly or indirectly guaranteed Indebtedness of $5,000,000the Company;
(vi) relating to the disposition all Contracts granting or acquisition of evidencing a Lien on any business, equity, properties or all or substantially all assets of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsCompany, other than a Permitted Lien;
(vii) containing all management service, consulting, financial advisory or any other similar type Contract and any Contracts with any investment or commercial bank;
(Aviii) a covenant or other provision all Contracts limiting in any material respect the ability of the Company or any Subsidiary of the Company its Affiliates to compete or engage in any line of business or to compete with any Person or to operate its business in any geographic area, ;
(ix) all Contracts (other than this Agreement and any customary employee non-solicitation agreement or no-hire clauses instrument entered into in pursuant to this Agreement) between the ordinary course of businessCompany and (A) Seller, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability any other Affiliate of the Company or any Affiliate of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties Seller (other than the Company) or (DB) a minimum purchaseany current or former officer, minimum volumedirector or shareholder of the Company, “earnout” Seller or any Affiliate of Seller;
(x) all Contracts (including letters of intent) involving the disposition or acquisition or the future disposition or acquisition of material assets or properties, or any merger, consolidation or similar business combination transaction, whether or not enforceable;
(xi) all Contracts involving any joint venture, partnership, strategic alliance, shareholders' agreement, co-marketing, co-promotion, co-packaging, joint development, distribution or similar arrangement;
(xii) all Contracts involving any material resolution or settlement of any actual or threatened litigation, arbitration, claim or other contingentdispute;
(xiii) all Contracts involving a standstill or similar arrangement;
(xiv) all Contracts involving leases or subleases of personal property, deferred or fixed payment obligation of including capital leases, to which the Company and its Subsidiaries, in each case, that is a party (as lessee or lessor);
(xv) all Contracts which are material to the Company and its Subsidiaries, taken as contain a whole"change in control" or similar provision;
(viiixvi) all Contracts relating to indemnification, whether the Company is the beneficiary or evidencing indebtedness the obligated party thereunder, including Contracts providing for borrowed money, debt securities, warrants indemnification of any Person with respect to Liabilities relating to any current or other rights to acquire any debt securities, former business;
(xvii) all Contracts which include an obligation of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of to indemnify any Person in connection with third party claims relating to infringement or misappropriation of Intellectual Property (unless capped in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries liability at or between or among any wholly-owned Subsidiaries of the Companybelow $25,000);
(ixxviii) any hedgingall customer Contracts (including but not limited to Contracts with respect to hosting services, swapsupport services, derivative, or similar Contractoutsourcing services and other information technology-related services) that individually account for more than $5,000 in sales of the Company on a monthly basis (other than the Contracts with the Company's CMS customers);
(xxix) that is a license all Contracts (or a covenantincluding but not limited to network connection agreements, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basisdata center agreements, (Bequipment leases and disaster recovery service agreements) pursuant to which the Company is provided equipment or any Subsidiary received licensing revenues services that are material to the operation of the Company's business and individually account for more than $25,000 in annual purchases of the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers Company;
(xx) all Contracts not made in the ordinary course of businessbusiness or under which the consequences of a default or termination could reasonably be expected to have, and/or (C) that is otherwise material individually or in the aggregate, a Material Adverse Effect with respect to the Company and its Subsidiaries taken as a wholeCompany;
(xixxi) all Contracts involving cash (or cash equivalents), property, services or other consideration valued at $10,000 or more which are not cancelable by the Company without penalty on thirty (30) days or less notice;
(xxii) all Contracts under which the Company has the right to use any Intellectual Property that is a license material to its business;
(or a covenant, consent or other rights in or to use Intellectual Propertyxxiii) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if all Contracts pursuant to which the Company grants any Person the exclusive right to use any Company Intellectual Property with respect to any line of business or any Subsidiary made payments during geographic area;
(xxiv) all other Contracts not covered by the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) above that is otherwise are material to the business of the Company and its Subsidiaries taken as a whole;; and
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xvxxv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends guaranty with respect to the Company's obligations or performance under any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesforegoing Contracts.
(b) Each Contract of the type described above in Section 4.15(aExcept as noted on Schedule 3.13(b), whether or not each Contract set forth in Section 4.15(aSchedule 3.13(a) of the Company Disclosure Schedule, (or required to be set forth in Schedule 3.13(a)) is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) legal valid and binding on obligation against the Company or and, to the applicable Subsidiary knowledge of Seller, each other party thereto, enforceable in accordance with its terms against the Company, as the case may be, and, to the Knowledge knowledge of the CompanySeller, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary each covenant of the Company has, and, to the Knowledge knowledge of Seller, of each other party thereto, required to have been performed has been fully performed in all material respects, and there exists no (i) default or event of default by the Company or, to the knowledge of Seller, any other party to any such Contract with respect to any material term or provision of any such Contract, or (ii) event, occurrence, condition or act (including the consummation of the Companytransactions contemplated hereby) which, none with the giving of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, the lapse of time or both) would constitute a breach of or default under, the provisions happening of any Material Contract, except in each case for those violations, acts (other event or failures to act) and defaults which, individually or in the aggregatecondition, would not reasonably be expected to have become a default or event of default by the Company Material Adverse Effect and, as of February 1, 2021or, to the Knowledge knowledge of the CompanySeller, neither the Company nor any Subsidiary of the Company has received written notice other party thereto, with respect to any material term or provision of any such Contract. Seller has delivered to Purchaser true and complete copies, including all material amendments, of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material each Contract has (A) canceled or otherwise terminated, or threatened set forth in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSchedule 3.13(a).
Appears in 1 contract
Material Contracts. (a) Except Section 4.09(a) of the Disclosure Schedules sets forth a true, complete and correct list of each of the following Contracts (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements than purchase orders entered into in connection with the transactions contemplated hereby and (iiiordinary course of business and, Contracts that by their terms may be terminated in the ordinary course of business upon less than 60 days’ notice without penalty or premium) for Company Employee Plans, as of the date hereof, neither the Company nor to which any Subsidiary of the Company is a party to or by which any Company is bound by any Contract:and which have not been entirely fulfilled or performed (such Contracts, collectively, the “Material Contracts”):
(i) all Contracts that is a “material contract” (as such term is defined contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)Membership Interests or other Equity of any of the Company nor its Subsidiaries;
(ii) any Contract that is with by its terms requires the ten (10) largest customers payment by or on behalf of any of the Company and or its Subsidiaries during in excess of $50,000 per annum or the fiscal year ended January 31delivery by any of the Company nor its Subsidiaries of goods or services with a fair market value in excess of $50,000 per annum or provides for any of the Company or its Subsidiaries to receive payments in excess of $50,000 per annum;
(iii) all Contracts involving a loan (other than accounts receivable owing from trade debtors in the ordinary course of business) or advance to (other than travel and entertainment advances to the employees of any of the Company or its Subsidiaries extended in the ordinary course of business), 2024 or investment in, any Person or any agreement relating to the making of any such loan, advance or investment;
(iv) any Contract that (i) requires any of the Company or its Subsidiaries to purchase any product or service in excess of $50,000 from a third party or (ii) requires that any of the Company or its Subsidiaries deal exclusively with a third party in connection with the sale or purchase of any product or service;
(v) any Contract that relates to an acquisition or divestiture of material assets that contains covenants, indemnities or other contractual obligations that could impose a Liability that is material to any of the Company or its Subsidiaries;
(vi) any Contract under which any of the Company or its Subsidiaries has any outstanding Debt or evidencing an Encumbrance on any property or asset of any of the Company or its Subsidiaries, other than a Permitted Encumbrance;
(vii) all Contracts under which any Person (other than the Company or its Subsidiaries) has directly or indirectly guaranteed Debt of any of the Company or its Subsidiaries;
(viii) any bonds or Contracts of Guarantee in which any of the Company or its Subsidiaries acts as determined based on revenue received a surety or guarantor with respect to any obligation (fixed or contingent) of another Person;
(ix) all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, joint development or similar arrangement;
(x) all Contracts involving any resolution or settlement of any actual or threatened Action under which any of the Company or its Subsidiaries has any obligation or Liability that will continue after the Closing Date;
(xi) any Contract limiting or restraining any of the Company or its Subsidiaries or any successor thereto from engaging or competing in any manner, in any location or in any business;
(xii) all Affiliate Contracts;
(xiii) any Contract providing for the license of or settlement with respect to the Company or its Subsidiaries’ Intellectual Property (other than commercially available software and hardware), as well as Intellectual Property license agreements under which any of the Company or its Subsidiaries is currently a licensee;
(xiv) any Contract concerning the occupancy, management or operation of any Real Property owned, leased or used by any of the Company or its Subsidiaries;
(xv) all collective bargaining agreements entered into by any of the Company or its Subsidiaries; and
(xvi) any Contract providing that any of the Company or its Subsidiaries indemnify any Person in an amount that would be material to such customers during Company or Subsidiary, other than any such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices agreement entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);.
(iiib) that is with the ten (10) largest vendors Each of the Company and all of its Subsidiaries during is in material compliance with the fiscal year ended January 31, 2024 (as determined based on cost terms and provisions of goods and services paid each Material Contract. No party to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Material Contract is in breach or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or default under any of its Subsidiaries outside terms. Neither of the ordinary course of business pursuant to which the Company or nor its Subsidiaries have material continuing obligations;has received written notice of any breach, default or notice of termination by any Person under any Material Contract. A copy of each written Material Contract has been provided to the Parent and a description of each verbal Material Contract is set forth in Section 4.09(a) of the Disclosure Schedules.
(viic) containing Each Material Contract is (Ai) a covenant or other provision limiting in any material respect the ability valid and binding on each of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete accordance with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, respective terms and (Bii) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary None of the Company has, and, or its Subsidiaries is in breach of or default under (or is alleged to the Knowledge be in breach of the Company, none of the other parties thereto have, violated any provision ofor default under), or committed has provided, delivered, or failed received any notice of any intention to perform terminate, any act under, and no Material Contract. No event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute an event of default under any Material Contract or result in a breach of termination thereof or default under, would cause or permit the provisions acceleration or other changes of any Material Contract, except right or obligation or the loss of any benefit thereunder.
(d) Other than as set forth in each case for those violations, acts (or failures to actSection 4.09(d) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanyDisclosure Schedules, neither of the Company nor its Subsidiaries has any Subsidiary Liability for the deferred purchase price of property, goods or services, whether connected or not to the Company has received written notice acquisition of any business (earn-out or other similar type of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicablepayments) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectnoncompetition agreement.
Appears in 1 contract
Sources: Agreement and Plan of Merger and Reorganization (Green Thumb Industries Inc.)
Material Contracts. Schedule 3.26(a) sets forth (a) Except (i) as filed as exhibits by reference to the Company SEC Documents, (iiapplicable subsection of this Section 3.26(a)) for this Agreement a complete and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as accurate list of the date hereoffollowing executory contracts (including all amendments, neither the Company nor any Subsidiary of modifications and supplements thereof) to which the Company is a party or by which the Company, its business or operations or any of its assets or properties are bound or affected (collectively, the “Material Contracts”), true, accurate and correct copies of which have been made available to or is bound by any ContractPurchaser:
(i) any Contract involving a distributor’s or manufacturer’s representative or agency arrangement that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)exclusive or not terminable by providing written notice;
(ii) that is with any Contract obligating the ten (10) largest customers Company to purchase or sell a stated amount or portion of its output or requirements relating to the products or services of the Company or of any other Person or that contains “take or pay” provisions, where the obligation of the Company, or the value to the Company, exceeds $10,000;
(iii) any lease of real or personal property where the payments remaining exceed $10,000;
(iv) any Contract requiring the performance by Company of any obligation for a period of time extending beyond one year after the Closing Date involving total consideration of more than $25,000;
(v) any Contract with any Governmental Authority,
(vi) any Contract for the purchase or sale of raw materials, commodities, supplies, products or other personal property, or for the furnishing or receipt of services, the performance of which would extend over a period of more than one year or that involves consideration in excess of $25,000;
(vii) any Contract involving the Company’s ownership or profits interests in another Entity;
(viii) any Contract under which the Company has created, incurred, assumed or guaranteed any indebtedness for borrowed money or any capitalized lease obligation, or under which any Lien (other than a Permitted Lien) is imposed on any of the assets or properties of the Company, including but not limited to any loan or credit agreement, mortgage, deed of trust, pledge agreement, security agreement, guarantee, indenture, bond, sale and its Subsidiaries during leaseback agreement, purchase money obligation, or conditional sale or title retention agreement;
(ix) any Contract concerning the fiscal year ended January 31disclosure of Trade Secrets or other confidential or proprietary information of the Company, 2024 (as determined based on revenue received from such customers during such time period) (excluding any other than confidentiality or non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices agreements entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiix) that is with the ten any Contract containing covenants (10or purporting to contain covenants) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors A) by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders limiting or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of restricting its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areageographical area or during any period of time or in any markets, other than or its ability to solicit or hire any customary employee non-solicitation Person as an employee, consultant or no-hire clauses entered into in the ordinary course of businesscontractor, or (B) “most favored nation”, “exclusivity” by any other Person limiting or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the restricting its ability of to compete against the Company in any line of business or in any geographical area or during any period of its Subsidiaries to sell, transfer, pledge time or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Companymarkets, or its ability to solicit or hire any guarantee by the Company employee, consultant or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholecontractor;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to Contract involving the Company and its Subsidiaries taken as a wholeany current or former director, officer, shareholder or other affiliate of the Company;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;[intentionally omitted]
(xiii) any Contract for the employment or retention of any employee, contractor, consultant, agent or other Person on a full-time, part-time, consulting, independent contractor or other basis that involves a material joint venture(a) is not terminable upon less than 60 days prior written notice or (b) provides severance, profit sharingretention, partnership change in control or similar agreement from which the Company other termination benefits or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024payments;
(xiv) that is a settlement, conciliation or similar any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) under which would require the Company has advanced or loaned any money to any of its Subsidiaries directors, officers, shareholders, employees or affiliates, or has agreed to pay consideration of more than $1,000,000 after or is obligated to do the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)same;
(xv) any stockholders’ agreementContract that provides any guaranty, proxy, voting trust agreement surety arrangement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities indemnification by the Company of the Company liabilities or obligations of other any Person, of its Subsidiaries any or relating to dispositionthe assumption of any Tax, voting environmental or dividends with respect to other liability of any equity securities of the Company or any of its Subsidiaries; orPerson;
(xvi) is with an affiliate any Contract that relates to the acquisition or disposition of any business, division, material amount of assets (excluding inventory and raw materials), real property or capital stock of any other Person that would be required to be disclosed under Item 404 (whether by merger, purchase, sale, transfer, assignment, change of Regulation S-K promulgated under the Exchange Act, other than control or otherwise);
(xvii) any Contract solely among to which the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a)is a party that provides for any joint venture, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedulepartnership, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsstrategic alliance, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default underlicensing arrangement, the provisions sharing of any Material Contract, except in each case for those violations, acts (revenues or failures to act) and defaults which, individually profits or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled proprietary information or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.similar arrangement;
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits Schedule 2.14 contains a complete and accurate list of all Contracts of the following categories to which any of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Terminals Companies is a party or by which any of them is bound as of the date hereof, neither of this Agreement (the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:"Material Contracts"):
(i) (1) continuing contracts for the purchase of materials, supplies, or equipment (other than purchase contracts and orders for inventory in the ordinary course of business consistent with past practice), (2) management, service, consulting, or other similar types of contracts or (3) advertising agreements or arrangements, in any such case that have an aggregate committed future liability to any Person (other than the applicable Terminals Company) in excess of $1,000,000 and that is not terminable by the applicable Terminals Company by notice of not more than 60 days for a “material contract” (as such term is defined in Item 601(b)(10) cost of Regulation S-K of the Exchange Act)less than $1,000,000;
(ii) that material Intellectual Property licenses (including any license or other agreement under which the applicable Terminals Company is with the ten (10) largest customers licensee or licensor of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from any such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its SubsidiariesIntellectual Property);
(iii) that is with the ten (10) largest vendors agreements under which any of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Terminals Companies has directly or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets indirectly guaranteed indebtedness of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations principal amount individually in excess of $1,000,000;
(xiiiiv) that involves a material joint venture, profit sharing, partnership or similar agreement from agreements under which the Company or any of its Subsidiaries recognized revenues the Terminals Companies is obligated to advance, loan, extend credit, or make a capital contribution to, or other investment in, any Person (other than any of the Terminals Companies), in any such case that, individually, is in excess of $1,000,000;
(v) all Contracts, leases or easements involving annual rental payments or receipts in excess of $1,000,000;
(vi) all promissory notes, loans, agreements, indentures, evidences of indebtedness or other instruments providing for the lending of money, whether as borrower or lender, in excess of $1,000,000 during the fiscal year ended January 31, 2024and all related security agreements or similar agreements associated therewith;
(xivvii) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) Contracts which would require limit the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice freedom of any of the foregoing. To the Knowledge Terminals Companies to compete with any Person or operate at any location, including, without limitation, any preferential rights granted to third parties to purchase or lease such location;
(viii) any Contract for a pending or completed acquisition or disposition (by merger or otherwise) of all or substantially all of the Company, since February 1, 2021, no counterparty to any Material Contract has assets (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicableother than inventory) or capital stock of any Person (B) decreased materially or threatened to decrease materially or limit materiallyincluding, without limitation, the amount Terminals Companies) under which any of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.the
Appears in 1 contract
Sources: Stock Purchase Agreement (Kinder Morgan Energy Partners L P)
Material Contracts. (a) Except (i) as filed as exhibits for the Real Property Leases, any contracts related to any Owned Real Property, the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Easements or any Plans, as Schedule 3.15(a) contains a list of each of the date hereof, neither the Company nor any Subsidiary of the following contracts to which an Acquired Company is a party to or is bound by any Contract:
as of the Execution Date (as amended, the “Material Contracts”): (i) that is a “material any gathering contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
, transportation contract, connection contract, processing contract, storage contract or marketing contract or other commitment to gather, handle, transport, store, process, or deliver hydrocarbons; (ii) any contract for the supply of goods or services by or to such Acquired Company that is with will not be terminated prior to the ten Closing, or that cannot be terminated on 90 or fewer days’ notice, and that provides for future payments by or to such Acquired Company of more than $1,000,000 per annum (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices service orders entered into in the ordinary course of business, and other similar Contracts business or bids or quotes that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into have been submitted in the ordinary course of business); (iii) any contract for the purchase of any material asset that provides for the future payment by an Acquired Company of more than $1,000,000 per annum or $3,000,000 in the aggregate, and other similar Contracts that are ancillary to Contracts pursuant to which cost any contract for the sale of goods and services is paid or payable by the Company);
any material asset; (iv) any contract that is grants to any Person a Government Contract;
right to purchase (including rights of first refusal, options or similar rights) any material assets of such Acquired Company; (v) evidencing a capital expenditure for which future payments are required in excess any contract that contains any covenant of $5,000,000;
(vi) relating such Acquired Company that materially limits or purports to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect limit the ability of the Company or any Subsidiary of the such Acquired Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than ; (vi) any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” construction contract or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material commitment to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire make any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in capital expenditure or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 purchase a capital asset in excess of $1,000,000, ; (vii) any agreement with any Seller or any Affiliate of a Seller; (viii) any contract under which such Acquired Company has directly or indirectly guaranteed any liabilities or obligations of a third party; (ix) any contract pursuant to which any Acquired Company is a party pursuant to which any material Intellectual Property rights or material IT Assets are granted by or to the Acquired Company (other than (A) non-exclusive licenses granted to customers in implied by the ordinary course sale of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, product and (B) in full force licenses of commercially-available, unmodified, off-the-shelf software or IT Assets licensed pursuant to standard terms and effectconditions for less than $1,000,000 annually); (x) any partnership, except (i) as may be joint venture, limited by bankruptcy, insolvency, moratorium and other liability company agreement or substantially similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.contract; 29
Appears in 1 contract
Material Contracts. (a) Except for this Agreement, the Existing Development Agreement, the Existing Company Option and the Contracts specifically identified in Schedule 2.18 of the Disclosure Letter, the Company is not a party to or bound by any of the following Contracts (each a “Material Contract”):
(i) as filed as exhibits any Contract pursuant to the which any Person has a right to market, resell or distribute any Company SEC Documents, Product;
(ii) any continuing Contract for the purchase, sale or license of materials, supplies, equipment, services, software, Intellectual Property or other assets involving in the case of any such Contract more than US$10,000 over the life of the Contract;
(iii) any Contract that expires or may be renewed at the option of any Person other than the Company so as to expire more than one year after the date of this Agreement, other than a Contract which is terminable for any reason by the Company within one year after the date of this Agreement;
(iv) 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;
(v) any Contract for capital expenditures in excess of US$10,000 in the aggregate;
(vi) any Contract limiting the freedom of the Company to engage or participate, or compete with any other Person, in any line of business, market or geographic area, or to make use of any Intellectual Property, or any Contract granting most favored nation pricing, exclusive sales, distribution, marketing or other exclusive rights, rights of refusal, rights of first negotiation or similar rights and/or terms to any Person, or any Contract otherwise limiting the right of the Company to sell, distribute or manufacture any products or services or to purchase or otherwise obtain any products or services;
(vii) any Contract pursuant to which the Company is a lessor or lessee of any real property or any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property involving in excess of US$10,000 per annum;
(viii) other than employment agreements already disclosed in Schedules 2.13(a), 2.13(c), 2.18 and 2.18(b) of the Disclosure Letter, any Contract (A) with any of its officers, directors, Employees or shareholders or any member of their immediate families or other closely related Persons (B) with any Person with whom the Company does not deal at arm’s length;
(ix) any Contract of guarantee, support, indemnification, assumption or endorsement of, or any similar commitment with respect to and/or statements regarding, the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or indebtedness of any other Person;
(x) all licenses, sublicenses and other Contracts as to which the Company is a party and pursuant to which any Person is authorized to use any Company IP Rights or pursuant to which the Company has agreed to any restriction on the right of the Company to use or enforce any Company-Owned IP Rights or pursuant to which the Company agrees to encumber, transfer or sell rights in or with respect to any Company-Owned IP Rights;
(xi) other than “shrink wrap” and similar generally available commercial end-user licenses to software that is not redistributed with or used in the development or provision of the Company Products that have an individual acquisition cost of US$5,000 or less, 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 Rights;
(xii) any Contract providing for the development of any software, content, technology or Intellectual Property, independently or jointly, by or for the Company;
(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 to license or authorize any third party to manufacture or reproduce any of the products, services, technology or Intellectual Property of the Company;
(xv) (A) any joint venture Contract, (B) any Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons or (C) any Contract that involves the payment of royalties to any other Person in excess of US$5,000 per annum;
(xvi) other than Contracts with Employees already disclosed in Schedules 2.13(a), 2.13(c), 2.18 and 2.18(b) of the Disclosure Letter, any Contract for the employment of any director, officer, Employee or consultant of the Company or any other type of Contract with any officer, Employee or consultant of the Company that is not immediately terminable by the Company without cost or liability (except as required by applicable law), including any Contract requiring it to make a payment to any director, officer, Employee or consultant on account of the Share Purchase, any transaction contemplated by this Agreement and the other agreements or any Contract that is entered into in connection with this Agreement;
(xvii) any Contract or plan (including any share option, merger and/or share bonus plan) relating to the transactions contemplated hereby and (iii) for sale, issuance, grant, exercise, award, purchase, repurchase or redemption of any Company Employee Plans, as of the date hereof, neither the Company nor Shares or any Subsidiary other securities of the Company is a party or any options, warrants, convertible notes or other rights to purchase or is bound by otherwise acquire any Contract:such shares, other securities or options, warrants or other rights therefor;
(ixviii) that is any Contract under which the Company provides any advice or services to any third party, including any consulting Contract, professional Contract or software implementation, deployment or development services Contract, or support services Contract (including, for each such contract, a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K description of the Exchange Actpercentage of completion and expected additional hours, resources and costs necessary to complete such services);
(iixix) that is any Contract with the ten any labor union or any collective bargaining agreement or similar contract with its Employees;
(10xx) largest customers of any Contract pursuant to which the Company and has acquired a business or entity, or assets of a business or entity, whether by way of merger, consolidation, purchase of shares, purchase of assets, license or otherwise, or any contract pursuant to which it has any material ownership interest in any other Person (other than its Subsidiaries during the fiscal year ended January 31subsidiaries);
(xxi) any Contract with any Governmental Entity or any Company Authorization;
(xxii) any confidentiality, 2024 (as determined based on revenue received from such customers during such time period) (excluding any secrecy or non-disclosure agreementsContract other than any such Contract entered into by the Company in the ordinary course of its business consistent with past practice or entered into with Buyer;
(xxiii) any settlement agreement;
(xxiv) any Contract pursuant to which rights of any third party are triggered or become exercisable, data processing agreementsor under which any other consequence, purchase orders result or statements effect arises, in connection with or as a result of work the execution of this Agreement or invoices the consummation of the Share Purchase or other transactions contemplated hereunder, either alone or in combination with any other event; or
(xxv) any other oral or written Contract or obligation not listed in clauses (i) through (xxiv) that individually had or has a value or payment obligation in excess of US$10,000 over the life of the Contract or is otherwise material to the Company or its businesses, operations, financial condition, properties or assets.
(b) Except as set forth on Schedule 2.18(b), all Material Contracts are in written form and have been entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any ’s business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) . Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcysubject only to the effect, insolvencyif any, moratorium of applicable bankruptcy and other similar Applicable Law laws affecting creditors’ the rights of creditors generally and by general principles rules of equity law governing specific performance, injunctive relief and (ii) as other equitable remedies. There exists no material default nor any event of default or event, occurrence, condition or act, with respect to the Company or to the Company’s knowledge, with respect to any other contracting party, which, with the giving of notice, the lapse of time or the happening of any other event or condition, would not, individually or in the aggregate, reasonably be expected to have (i) become a Company material default or an event of default under any Material Adverse Effect. Neither Contract or (ii) give any third party (A) the Company nor right to declare a default or exercise any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of material remedy under any Material Contract, except (B) the right to a rebate, chargeback, refund, credit, penalty or change in each case for those violationsdelivery schedule under any Material Contract, acts (C) the right to accelerate the maturity or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as performance of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary material obligation of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to under any Material Contract has (A) canceled or otherwise terminatedContract, or threatened in writing (D) the right to cancel, terminate or modify any Material Contract. The Company has not received any notice or other communication regarding any actual or possible material breach of, or material default under, or intention to cancel or otherwise modify any Material Contract. True, correct and complete copies of all Material Contracts have been provided to terminate, its relationship with Buyer prior to the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectClosing Date.
Appears in 1 contract
Material Contracts. (a) Except Exhibit 7.1.31
(ia) as filed as exhibits sets forth a true, correct and ----------------- complete list of all contracts, commitments, licenses, agreements, obligations or binding arrangements, whether oral or written, to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor which any Borrower or Subsidiary of the Company is a party (or intends to become a party) or to which any of its assets or properties is bound by any Contractbound:
(i) that under which any Borrower or Subsidiary is a “material contract” (as such term indemnified for or against any liability in excess of $50,000 or under which any Borrower or Subsidiary is defined or could be obligated to indemnify any Person in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$50,000;
(ii) that under which any Borrower or Subsidiary leases personal property from or to third parties under capital leases which involve rental payments of at least $25,000 per annum or under operating leases which involve rental payments of at least $25,000 per annum;
(iii) for the purchase or sale of products or other personal property or for the furnishing or receipt of services (A) which calls for performance over a period of more than one (1) year and which involves payments of more than the $50,000 per year in the aggregate or (B) in which any Borrower or Subsidiary has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from any Person;
(iv) (A) granting representation, marketing or distribution rights or (B) relating to Intellectual Property (including, without limitation, license, franchise, development or similar agreements other than those listed in response to item (xiv) below);
(v) under which any Borrower or Subsidiary has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness in excess of $25,000;
(vi) establishing or maintaining any partnership, joint venture or strategic alliance;
(vii) under which there is with or may be imposed a security interest or other Lien on any of its assets, whether tangible or intangible, the ten net book value or fair market value of which is in excess of $50,000 (10) largest customers other than the security interests or Liens granted in favor of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 Agent);
(as determined based on revenue received from such customers during such time periodviii) (excluding concerning any confidentiality or non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices solicitation obligations entered into in outside the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiix) that under which any Borrower or Subsidiary is with the ten (10) largest vendors of the Company and restricted from carrying on its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding business or any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equitypart thereof, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage from competing in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractPerson;
(x) that is a license (with officers, directors, employees, consultants or a covenant, consent independent contractors of any Borrower or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeSubsidiary;
(xi) that is a license (involving any Affiliates of any Borrower or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeSubsidiary;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from under which the Company consequences of a default or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which termination would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect;
(xiii) under which any Borrower or Subsidiary will (A) receive aggregate payments from customers, (B) make aggregate payments to vendors or other suppliers or (C) make or receive aggregate payments to or from any other Persons, in each case in excess of $50,000 per annum;
(xiv) which are franchise agreements or development agreements; and
(xv) not entered into in the ordinary course of business and not otherwise disclosed on Exhibit 7.1.31
(b) in response to any of the foregoing clauses. All of the contracts, commitments, licenses, agreements, obligations or arrangements described in clauses (i) through (xv) above, together with the Loan Documents, the Tranche B Loan Documents, the Subordinated Debt Documents and the Convertible Subordinated Debentures, the real property leases, subleases, licenses and other interests described in subclause 7.1.35, whether entered into prior to, on or after the Closing Date, and the Agreements with officers, are collectively referred to herein as the "Material Contracts". The Borrowers have delivered or made ------------------ available to the Agent true and complete copies of each Material Contract in existence as of the date hereof.
(b) Except as disclosed on Exhibit 7.1.31(b), each ----------------- Material Contract existing as of the date hereof is a legal, valid and binding obligation of the applicable Borrowers and Subsidiaries that are party thereto, on the one hand, and the other parties thereto, on the other hand, enforceable against each of them in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or conveyance or similar laws relating to or limiting creditors' rights generally or by equitable principles relating to enforceability, and is in full force and effect. The Borrowers and Subsidiaries, and to their knowledge, each other party to each Material Contract existing as of the date hereof are in substantial compliance with the terms thereof, and no default or event of default by any Borrower or Subsidiary or, to their best knowledge, any other party thereto exists thereunder.
Appears in 1 contract
Sources: Loan and Security Agreement (Falcon Products Inc /De/)
Material Contracts. (a) Except (i) as filed as exhibits to Section 4.12 of the Company SEC DocumentsDisclosure Schedule sets forth all of the following Contracts to which the Company or any of the Subsidiaries is a party or by which it is bound, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planseach case, as of the date hereofof this Agreement (collectively, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:“Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K Contracts with any current officer or manager of the Exchange ActCompany or any of the Subsidiaries (other than Company Benefit Plans);
(ii) that is with Contracts providing for any change in control, retention, severance payments or benefits, advance notice of termination, accelerated vesting or any other compensation or benefit to or for the ten (10) largest customers benefit of any employee of the Company and its Subsidiaries during Company, in any case, that will be triggered or enhanced as a result of the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements consummation of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Transactions;
(iii) that is Contracts with the ten (10) largest vendors any labor union or association representing any employee of the Company and its Subsidiaries during or any of the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Subsidiaries;
(iv) that is a Government ContractContracts for the sale of any of the assets of the Company or any the Subsidiaries within the last three (3) years, in each case, for consideration in excess of $100,000;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) Contracts relating to the any pending acquisition or disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its the Subsidiaries outside of any operating business or the ordinary course share capital or other equity securities or real properties or other material assets of business pursuant to which any Person;
(vi) joint venture, partnership, or other similar agreements with a third party involving an investment by the Company or its Subsidiaries have material continuing obligationsany of the Subsidiaries;
(vii) Contracts containing covenants (A) a covenant restricting or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company Subsidiaries to compete or engage in any line of business or to compete with any Person or in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, area (B) “most favored nation”, “exclusivity” requiring the Company or similar provisions, any Subsidiaries to purchase or otherwise obtain any products or services exclusively from a single third party or (C) requiring a right party to act as an exclusive agent for the Company or any Subsidiary in connection with the marketing, distribution or sale of first refusal or right of first offer or similar right that limits the ability any product of the Company or any Subsidiary;
(viii) each Contract containing a “most favored nation” or similar provision in favor of its any counterparty of any of the Company or the Subsidiaries;
(ix) each Contract which contains a prohibition on the Company or any of the Subsidiaries relating to sellthe solicitation or hiring of any Person, transfer, pledge or otherwise dispose including the employees and contractors of assets, rights or properties any Person;
(x) Contracts relating to the incurrence of Debt of the type described in clause (i) or (Dii) of the definition thereof, or the making of any loans by the Company or any of the Subsidiaries, in each case, involving amounts in excess of $500,000 (other than any such loans that are also Lessor Real Estate Leases (which are covered by clause (xix) below));
(xi) each Contract that relates to any settlement of litigation with, or an order of, a minimum purchaseGovernmental Body pursuant to which there are material outstanding obligations of or owing to the Company or any Subsidiary;
(xii) each Contract with a Material Supplier;
(xiii) any Contract with any Governmental Body;
(xiv) each Related Party Agreement, minimum volume, “earnout” except for any Company Benefit Plan;
(xv) any Contract pursuant to which any of the Company or other contingent, deferred any Subsidiary grants to or fixed payment obligation receives from a third party a license or similar use right under any Intellectual Property rights that are material to the business of the Company and its Subsidiaries, in each caseexcluding (A) click-wrap and shrink-wrap licenses and other non-exclusive licenses for commercially available off-the-shelf software, that is material to the Company and its Subsidiaries, taken as a whole;
(viiiB) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its whollynon-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) exclusive licenses granted by the Company or any Subsidiary in the Ordinary Course of Business and (C) non-disclosure agreements, invention assignments and employee- or contractor-related agreements entered into in the Company to Company Intellectual Property Ordinary Course of Business;
(Axvi) on an exclusive basiseach Contract providing for indemnification of any director, (B) pursuant to which officer or employee of the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, (other than non-exclusive licenses granted to customers in the ordinary course Governing Documents of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeany Subsidiary);
(xixvii) that is a license (or a covenantContracts which involve any capital expenditure, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basiseach case, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)100,000;
(xvxviii) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; oreach Real Property Lease;
(xvixix) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among Lessor Real Estate Leases; and
(xx) the Company Trademark Acquisition Agreement and its wholly-owned Subsidiariesthe Domain Name Assignment Agreements.
(b) Each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) valid, binding and enforceable obligation of the Company Disclosure Schedule, is referred to herein as or a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the CompanySubsidiary, as the case may beapplicable, and, to the Knowledge of the Company, of each other party counterparty thereto, and (B) is in full force and effect, except (i) as may for such failures to be limited by bankruptcylegal, insolvencyvalid, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notbinding, individually enforceable or in the aggregate, full force and effect that would not reasonably be expected to have be material to the Company or the Subsidiaries, taken as a whole. Each of the Company and the Subsidiaries has fulfilled and performed its respective obligations under each of the Material Adverse Effect. Neither Contracts, and neither the Company nor any Subsidiary of the Company hasSubsidiaries, nor to the Knowledge of the Company, any other party thereto, is in, or alleged in writing (or, to the Company’s Knowledge, orally) to be in, breach of, or in default under (including, with respect to transactions under securitization, subject to repurchase transactions), nor is there alleged to be any basis for termination of any such Material Contract, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event has occurred that with notice or condition exists, which (with or without notice, lapse of time or both) both would constitute such a breach of or default under, thereunder or would permit or cause the provisions termination or modification thereof or acceleration or creation of any Material Contractright or obligation thereunder that would have, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have be material to the operations of the Company or any of the Subsidiaries taken as a Company Material Adverse Effect andwhole, as of February 1, 2021or, to the Knowledge of the Company, neither the any other party thereto. The Company nor any Subsidiary has made available true, correct and complete copies of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty Material Contracts to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectParent.
Appears in 1 contract
Material Contracts. (a) Except (iSection 2.10(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and Disclosure Schedule lists each of the other agreements entered into following Contracts in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, effect as of the date hereof, neither the Company nor any Subsidiary of this Agreement to which the Company is a party or which binds or affects its properties or assets in the following categories (other than Standard Contracts and Company Plans) (each of the following types of Contracts to or which the Company is bound by any Contract:a party, the “Material Contracts”):
(i) any Contract that is a “material contract” requires future payments by or to the Company in excess of Twenty-Five Thousand Dollars (as $25,000) in any calendar year, including any such term is defined in Item 601(b)(10) Contract for the purchase or sale of Regulation S-K assets, raw materials, goods, commodities, utilities, equipment, supplies, products or other personal property, or for the provision or receipt of the Exchange Act)services;
(ii) that is with the ten (10) largest customers any Contract related to an acquisition, divestiture, merger, sale of the Company and its Subsidiaries during the fiscal year ended January 31assets or similar transaction containing representations, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementscovenants, data processing agreementsindemnities, purchase orders price payments, “earn-outs”, adjustments or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)obligations;
(iii) that is any Contract with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Governmental Body;
(iv) that (A) any guaranty, surety or performance bond or letter of credit issued or posted, as applicable, by the Company; (B) any Contract evidencing Debt of the Company or providing for the creation or granting of any Lien upon any of the property or assets of the Company (excluding Permitted Encumbrances); (C) any Contract (1) relating to any loan or advance to any Person which is a Government Contractoutstanding as 12. of the date of the Agreement or (2) obligating or committing the Company to make any such loans or advances; and (D) any currency, commodity or other hedging or swap contract;
(v) evidencing a capital expenditure for which future payments are required in excess any Contract creating or purporting to create any partnership or joint venture, or any sharing of $5,000,000profits or losses, or any similar arrangement by the Company with any third party;
(vi) relating any Contract (A) containing covenants restricting or purporting to restrict competition which, in either case, have, would have or purport to have the disposition or acquisition effect of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by prohibiting the Company or, after the Closing, Buyer or the Company from engaging in any of its Subsidiaries outside of the ordinary course of business pursuant to or activity in any geographic area or other jurisdiction; (B) in which the Company has granted “exclusivity”, “co-exclusivity” or its Subsidiaries have material continuing obligationsthat requires the Company to deal exclusively with, or grant exclusive or co-exclusive rights or rights of first refusal to, any customer, vendor, supplier, distributor, contractor or other Person; (C) that includes minimum purchase conditions or other requirements imposed on the Company, in either case that exceed Twenty-Five Thousand Dollars ($25,000) in any calendar year; or (D) containing a “most-favored-nation”, “best pricing” or other similar term or provision by which another party to such Contract or any other Person is, or could become, entitled to any benefit, right or privilege which, under the terms of such Contract, must be at least as favorable to such party as those offered to another Person;
(vii) other than confidentiality agreements entered into in the Ordinary Course of Business, any Contract containing (A) a covenant covenants that restrict or other provision limiting limit in any material respect the ability of the Company to solicit or any Subsidiary of the Company to compete hire employees or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholecustomers;
(viii) relating any Contract under which the Company is, or may become, obligated to or evidencing indebtedness for borrowed moneyincur any severance, debt securitiesretention, warrants change in control, or other rights to acquire any debt securities, amount that would become payable by reason of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)transaction contemplated hereunder;
(ix) any hedgingContract providing for the employment or engagement of any Person on a full-time, swappart-time, derivativeindependent contractor, temporary or other basis or otherwise with any employee, director, manager, officer or independent contractor of the Company, other than any such Contracts for employment that are terminable at-will without advance notice, or similar Contractthat do not provide for any severance, penalty, or other liability upon termination;
(x) that is a license (or a covenantany Contract, consent collective bargaining agreement or other rights in or to use Intellectual Property) granted by the Company or similar agreement with any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeUnion;
(xi) that is a license (any separation agreement or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or settlement agreement with any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to employee under which the Company has any current actual or potential Liability, as well as any Subsidiary made payments during the fiscal year ended January 31settlement agreement, 2024 in excess of $1,000,000consent decree, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeor other similar agreement with any Governmental Body;
(xii) that any lease, sublease, rental or occupancy agreement, license, installment, and conditional sale agreement or agreement under which the Company is a Company Real Property Lease with remaining obligations lessee or lessor of, or owns, uses or operates any leasehold or other interest in excess of $1,000,000any real or personal property;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company any Contract with any professional employer organization or any agreement with an employee leasing agency for the engagement of its Subsidiaries recognized revenues in excess of $1,000,000 during temporary or leased employees by the fiscal year ended January 31, 2024;Company; and
(xiv) that is a settlement, conciliation any Contract not otherwise listed or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 listed in Section 2.10(a) of Regulation S-K promulgated under the Exchange ActDisclosure Schedule that, other than any if terminated, or if such Contract solely among the expired without being renewed, would have a Company and its wholly-owned SubsidiariesMaterial Adverse Effect.
(b) Each With respect to each Material Contract of the type described above listed in Section 4.15(a), whether or not set forth in Section 4.15(a2.10(a) of the Company Disclosure Schedule: (i) such Material Contract is binding and enforceable against the Company (other than, is referred to herein as a “Material Contract.” Except for of the Closing Date, Material Contracts that have expired or terminated by prior to the Closing Date pursuant to their respective terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the CompanySellers’ Knowledge, each other party thereto, and (B) in full force and effecteach case, in accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other or similar Applicable Law laws affecting creditors’ rights generally and by general equitable principles (regardless of equity whether enforcement is sought in a proceeding at law or in equity); and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary is not in material breach or material default of such Material Contract or, with the Company has, and, to giving of notice or the Knowledge giving of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, notice and no event or condition exists, which (with or without notice, lapse passage of time without a cure would be, in material breach or both) would constitute a breach material default of or default under, the provisions of any such Material Contract, except in each case for those violations, acts (or failures and to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect andSellers’ Knowledge, as of February 1the date of this Agreement, 2021, no other party to the Knowledge such Material Contract is in material breach or material default of the Company, neither the Company nor any Subsidiary of the such Material Contract. The Company has received written notice delivered or otherwise made available to Buyer a true, accurate and complete copy of each such Material Contract and all related amendments and modifications. The Company has not waived any material rights under any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContracts.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to Schedule 3.10 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Seller Disclosure Letter sets forth as of the date hereof, neither the Company nor any Subsidiary hereof a list of the following Contracts that relate primarily to the Business to which a Seller Entity, Conveyed Company or any Affiliate of any thereof is a party (collectively, the “Material Contracts”), true and complete (in all material respects) copies of which Seller has made available to or is bound by any ContractPurchaser prior to the execution hereof:
(i) that is a “material contract” (as such term is defined each Equipment Lease which entails rental payments in Item 601(b)(10) excess of Regulation S-K of $100,000 per annum or $500,000 in the Exchange Act)aggregate;
(ii) that is with each Contract for goods and/or services between (a) any Seller Entity or Conveyed Company on the ten one hand, and any other Seller Entity, Conveyed Company or any Affiliate of any thereof, on the other hand or (10b) largest customers Seller and/or any of its Affiliates (other than the Conveyed Companies) or any of the Company and officers or directors of Seller and/or any of its Subsidiaries during Affiliates (other than the fiscal year ended January 31Conveyed Companies), 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of businessone hand, and any Seller Entity and/or Conveyed Company, on the other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)hand;
(iii) that is with the ten each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee (10excluding items set forth in Schedule 3.13(a) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost Seller Disclosure Letter) in respect of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements Indebtedness in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$100,000;
(iv) each customer Contract that resulted in payment in excess of $500,000 in the 2009 Fiscal Year or is a Government Contractexpected to result in payment in excess of $1,000,000 in the aggregate within Seller’s fiscal years 2010 and 2011, to the applicable Seller Entity or Conveyed Company, respectively;
(v) evidencing a capital expenditure for which future payments are required each outstanding Contract with vendors of the Business that resulted in payment in excess of $5,000,000500,000 in the 2009 Fiscal Year or is expected to result in payment in excess of $1,000,000 in the aggregate within Seller’s fiscal years 2010 and 2011 by the applicable Seller Entity or Conveyed Company, respectively;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision each Contract materially limiting in any material respect the ability of the Company applicable (A) Asset Selling Entity (or any Subsidiary of following the Company to compete or engage in any line of business or Closing, the Business) to compete with any Person in any geographic area, other than any customary employee non-solicitation connection with such entity’s conduct of the Business or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability Conveyed Company to compete with any Person in connection with such entity’s conduct of the Company Business;
(vii) each material Contract regarding the formation or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) participation in an equity joint venture with a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholethird party;
(viii) relating each Contract pursuant to which any Seller Entity or evidencing indebtedness Conveyed Company (as licensor or licensee) licenses any Intellectual Property material to the Business (excluding licenses for borrowed money, debt securities, warrants commercial off-the-shelf computer software that are generally available and which have an acquisition cost of $100,000 or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyless);
(ix) any hedging, swap, derivativecollective bargaining or other labor or union Contracts, or similar Contractany contract with any Business Employees;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary material sales representative contracts and material powers of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeattorney;
(xi) that is each outstanding purchase order from a license (or customer on the back-log report as of September 25, 2009 with a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a nonback-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 log amount in excess of $1,000,000, and/or 500,000 (C) that is otherwise material to the Company and its Subsidiaries taken as each a whole;“Material Purchase Order”); and
(xii) that any other Contract or purchase order that, to the Knowledge of Seller, is a Company Real Property Lease with remaining obligations in excess material to the operation of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or Business and does not fall into any of its Subsidiaries recognized revenues the categories above in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesSection 3.10.
(b) Each Contract of the type described above Other than those identified in Section 4.15(a3.10(a)(xi) or any purchase order identified in Section 3.10(a)(xii), whether each Material Contract is in full force and effect.
(c) There exists no default or not set forth in Section 4.15(a) event of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated default by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, andAsset Selling Entity or Conveyed Company or, to the Knowledge of the CompanySeller, each any other party theretoto any such Contract or purchase order, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually with respect to any material term or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company Purchase Order or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages purchase order identified in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSection 3.10(a)(xii).
Appears in 1 contract
Sources: Stock and Asset Purchase Agreement (Preformed Line Products Co)
Material Contracts. (aSchedule 3.11(a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement is an accurate and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereof, neither of all of the Company nor any Subsidiary following Contracts to which a member of the Company Group is a party (the “Material Contracts”), provided, that, unless otherwise expressly required to be set forth on Schedule 3.11(a) as set forth in clauses (i) through (xvi) below, the term “Material Contracts” shall not include any purchase or is bound sales orders (A) entered into in the Ordinary Course which remain open or outstanding as of the date hereof with existing payment obligations owed by or to the Company Group thereunder of less than $50,000 or (B) under which no obligations or payments of any Contractparty thereto remain outstanding as of the date hereof:
(i) Contracts evidencing Indebtedness for borrowed money owed by the Company Group or providing for any loan to any Person (other than a member of the Company Group or advances to Company Group Employees in the Ordinary Course) or guaranty by any member of the Company Group of any obligation for borrowed money of a third Person that is not a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K member of the Exchange Act)Company Group, in each case, with a principal amount in excess of $1,000,000, and Contracts (other than the Credit Agreement) that expressly limit the ability of any member of the Company Group to incur Indebtedness (including guaranties) or incur Liens;
(ii) that is with the ten (10) largest customers of the all Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Group Employment Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)provide for annual base compensation in excess of $100,000;
(iii) all Company Group IP Agreements that is with are material to the ten (10) largest vendors operation of the business of the Company and its Subsidiaries during the fiscal year ended January 31Group, 2024 (as determined based on cost of goods and services paid other than non-exclusive licenses for commercially available off-the-shelf software licensed to such vendors by the Company during such Group for a one-time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements annual fee of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)less than $50,000;
(iv) that Real Property Leases or leases of personal property under which the Company Group is a Government Contractthe lessee and is obligated to make payments in excess of $50,000 per annum;
(v) evidencing Contracts providing for any business acquisition or disposition or any other investment in, any Person (other than a capital expenditure for member of the Company Group, and other than investments in marketable securities or advances to Company Group Employees in the Ordinary Course excluding any Affiliate Arrangements) by the Company Group entered into at any time during the three (3) year period prior to the date of this Agreement or pursuant to which future payments are required any of the Company Group has ongoing obligations (including continuing economic obligations with respect to the payment of any amounts in excess respect of $5,000,000earn-outs, deferred purchase price or purchase price adjustments) or liabilities;;
(vi) relating to the disposition any labor or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationscollective bargaining agreements;
(vii) containing any joint venture or limited partnership agreements or similar agreements;
(viii) Contracts requiring capital expenditures in an amount in excess of $10,000 in any 12-month period;
(ix) Contracts with (A) a covenant Material Customer or other provision limiting (B) a Material Vendor;
(x) Contracts that (A) require any member of the Company Group to do business with the counterparty thereto on an exclusive basis or restricts or limits, in any material respect the ability respect, a member of the Company Group from owning, managing, soliciting or operating any Subsidiary of the Company to compete business or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessgeographical location, (B) “most favored nation”contain minimum payment obligations in excess of $50,000 per year or take-or-pay obligations or material performance guarantees requiring the Company Group to produce, “exclusivity” deliver or similar provisionshave available a minimum amount of goods, in each case, by any member of the Company Group (C) a grant any right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or third parties (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeReal Property Leases);
(xi) that is a license (Contracts, including any sale or a covenant, consent purchase orders in any amounts under which any payment or other rights in or to use Intellectual Property) obligations on the part of Third Party Rights granted to the Company or any Subsidiary either party remain outstanding as of the Company (A) on an exclusive basisdate hereof, (B) on a non-exclusive basis, if pursuant relating to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesteel purchases;
(xii) that is a any sale or purchase orders which remain open or outstanding as of the date hereof with payment obligations by or to the Company Real Property Lease with remaining obligations Group thereunder in excess of $1,000,00050,000 in the aggregate;
(xiii) Contracts that involves a material joint venture, profit sharing, partnership expressly limit or similar agreement from which purport to limit the payment of dividends or distributions in respect of the capital stock of any member of the Company Group, the pledging of the capital stock of any member of the Company Group or the incurrence of indebtedness for borrowed money or guarantees by any member of its Subsidiaries recognized revenues the Company Group or the ability of any member of the Company Group in excess any material respect to pledge, sell, transfer or otherwise dispose of $1,000,000 during the fiscal year ended January 31, 2024any material amount of assets or business;
(xiv) Contracts that is are with a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Authority;
(xv) any stockholders’ agreementContracts that reflect a settlement of any threatened or pending Litigation either (A) in excess of $50,000 and entered into since January 1, proxy, voting trust agreement 2018 or registration rights agreement (B) containing continuing obligations or similar agreements, arrangements or commitments relating to any equity securities of restrictions on the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its SubsidiariesGroup; orand
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesAffiliate Arrangement.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(iA) any lease of real or personal property providing for annual rentals of $300,000 or more;
(B) any Contract (other than purchase orders for goods purchased by the Company) that is reasonably likely to require either (x) annual payments to or from the Company and its Subsidiaries of more than $100,000 or (y) aggregate payments to or from the Company and its Subsidiaries of more than $100,000;
(C) other than with respect to any partnership that is wholly-owned by the Company or any wholly-owned Subsidiary of the Company, any partnership, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership or joint venture material to the Company or any of its Subsidiaries or in which the Company owns a “material contract” voting or economic interest;
(D) any Contract (other than among direct or indirect wholly-owned Subsidiaries of the Company) 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 $100,000;
(E) any Contract required to be filed as such term is defined in an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K of under the Exchange Securities Act);
(iiF) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders competition Contract or statements of work or invoices entered into other Contract that (I) purports to limit in any material respect either the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course type of business pursuant to in which the Company or its Subsidiaries have material continuing obligations;
(viior, after the Effective Time, Parent or its Subsidiaries) containing (A) a covenant may engage or other provision limiting the manner or locations in which any of them may so engage in any business, (II) could require the disposition of any material respect the ability assets or line of business of the Company or any Subsidiary of its Subsidiaries or, after the Company to compete Effective Time, Parent or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessits Subsidiaries, (BIII) grants “most favored nation”nation”status that, “exclusivity” following the Merger, would apply to Parent and its Subsidiaries, including the Company and its Subsidiaries or similar provisions, (CIV) a right of first refusal prohibits or right of first offer or similar right that limits the ability right of the Company or any of its Subsidiaries to sellmake, sell or distribute any products or services or use, transfer, pledge license, distribute or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the enforce any Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeIntellectual Property rights;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ixG) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or Contract to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess is a party containing a standstill or similar agreement pursuant to which one party has agreed not to acquire assets or securities of $1,000,000 during the fiscal year ended January 31, 2024other party or any of its Affiliates;
(xivH) that is a settlement, conciliation or similar any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require between the Company or any of its Subsidiaries to pay consideration and any director or officer of the Company or any Person beneficially owning five percent or more than $1,000,000 after of the date of this Agreement or outstanding Shares;
(zI) that subjects any Contract providing for indemnification by the Company or any of its Subsidiaries to of any material ongoing requirements or restrictions Person, except for (other than ordinary course confidentiality requirements or restrictions);
x) guarantees of franchisee obligations, and (xvy) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating such Contract that is (I) not material to any equity securities of the Company or any of its Subsidiaries and (II) entered into in the ordinary course of business;
(J) any Contract that contains a put, call or relating similar right pursuant to disposition, voting or dividends with respect to any equity securities of which the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would Subsidiaries could be required to be disclosed under Item 404 purchase or sell, as applicable, any equity interests of Regulation S-K promulgated under the Exchange Act, other any Person or assets that have a fair market value or purchase price of more than $100,000;
(K) any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on which the Company or the applicable Subsidiary any of its Subsidiaries is a party concerning Intellectual Property, including, without limitation, Contracts granting the Company, as the case may beany of its Subsidiaries, or any other Person rights to use any Company Intellectual Property; and
(L) any other Contract or group of related Contracts that, if terminated or subject to the Knowledge of the Company, each other a default by any party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notwould, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except result in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and(the Contracts described in clauses (A) – (L), together with all exhibits and schedules to such Contracts, being the “Material Contracts”).
(ii) A copy of each Material Contract has previously been delivered to Parent and each such Contract is a valid and binding agreement of the Company or one of its Subsidiaries, as of February 1the case may be, 2021and is in full force and effect, to the Knowledge of the Company, and neither the Company nor any Subsidiary of its Subsidiaries nor, to the Company has received written notice knowledge of any of executive officer or the foregoing. To the Knowledge general counsel of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled other party thereto is in default or otherwise terminated, or threatened breach in writing to cancel or otherwise to terminate, its relationship with any respect under the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount terms of business that any such counterparty presently engages in agreement, contract, plan, lease, arrangement or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectcommitment.
Appears in 1 contract
Material Contracts. (a) Except as disclosed in Section 6.15 of the Vaxcel Disclosure Memorandum or otherwise reflected in the Vaxcel Financial Statements, none of the Vaxcel Companies, nor any of their respective Assets, businesses, or operations, is a party to, or is bound or affected by, or receives benefits under, (i) as filed as exhibits any employment, severance, termination, consulting or retirement Contract providing for aggregate payments to the Company SEC Documentsany Person in any calendar year in excess of $10,000, (ii) for this Agreement any Contract relating to the borrowing of money by any Vaxcel Company or the guarantee by any Vaxcel Company of any such obligation (other than Contracts evidencing trade payables and Contracts relating to borrowings or guarantees made in the ordinary course of business), (iii) any Contract which prohibits or restricts any Vaxcel Company from engaging in any business activities in any geographic area, line of business or otherwise in 39 competition with any other agreements Person, (iv) any Contract between or among Vaxcel Companies, (v) any Contract involving Intellectual Property (other than Contracts entered into in connection the ordinary course with customers and "shrink-wrap" software licenses), (vi) any Contract relating to the transactions contemplated hereby provision of data processing, network communication, or other technical services to or by any Vaxcel Company, and (iiivii) for Company Employee Plans, as any Contract relating to the purchase or sale of the date hereof, neither the Company nor any Subsidiary of the Company is a party to goods or is bound by any Contract:
services (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices other than Contracts entered into in the ordinary course of business, business and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding involving payments under any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required individual Contract not in excess of $5,000,000;
20,000) (vitogether with all Contracts referred to in Sections 6.9 and 6.14(a), the "Vaxcel Contracts"). With respect to each Vaxcel Contract: (i) relating to the disposition Contract is in full force and effect; (ii) no Vaxcel Company is in Default thereunder; (iii) no Vaxcel Company has repudiated or acquisition waived any material provision of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
such Contract; and (viiiv) containing (A) a covenant or no other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries party to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any such Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, andis, to the Knowledge of the CompanyVaxcel, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually Default in any respect or in the aggregate, reasonably be expected to have a Company Material Adverse Effecthas repudiated or waived any material provision thereunder. Neither the Company nor any Subsidiary All of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions indebtedness of any Material Contract, except in each case Vaxcel Company for those violations, acts (money borrowed is prepayable at any time by such Vaxcel Company without penalty or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectpremium.
Appears in 1 contract
Sources: Agreement and Plan of Merger and Contribution (Vaxcel Inc)
Material Contracts. (a) Except for Contracts that are terminable by any Company upon sixty (i60) as filed as exhibits to the Company SEC Documentsdays’ notice or less without penalty, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 4.10 of the date hereofSeller Disclosure Letter is a complete, neither the Company nor any Subsidiary accurate, and current list of the following Contracts to which any Company is a party to or is otherwise bound by any and which is in effect as of the Effective Date or as of the Closing Date (each, a “Material Contract:”):
(i) that is a “material contract” Any Contract providing for aggregate annual payments to or by any Company in excess of Five Hundred Thousand Dollars (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act$500,000);.
(ii) Any Contract that grants to any Person the right to occupy any portion of the Real Property (other than such Contracts for hotel, meeting and banquet rooms entered into in the Ordinary Course).
(iii) Any Contract related to the sale, lease, or use of gaming equipment having a value in excess of Five Hundred Thousand Dollars ($500,000).
(iv) Any Contract that prohibits any Company from competing in any geographical area, market or line of business.
(v) All partnership agreements, limited liability company agreements and joint venture agreements relating to any Company or the Business.
(vi) Any Contract with a Governmental Body.
(vii) Any Contract that is with the ten (10A) largest customers a license to any Company of the Intellectual Property and requires annual payments in excess of Five Hundred Thousand Dollars ($500,000), other than commercially available software products under standard end-user, “shrink wrap,” “click-to-accept” or similar object code license agreements, or (B) a license by any Company and its Subsidiaries during the fiscal year ended January 31of any Intellectual Property, 2024 (as determined based on revenue received from such customers during such time period) (excluding other than any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into exclusive licenses granted in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;.
(viii) relating Any Contract pursuant to which any Company has created, incurred, assumed or evidencing indebtedness guaranteed Indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, money in excess of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person Five Hundred Thousand Dollars (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company$500,000);.
(ix) any hedging, swap, derivative, or similar Any employment Contract;.
(x) that is a license (or a covenantAny Contract with any ▇▇▇▇ Party, consent or other rights in or to use Intellectual Property) granted by the Company any of its Affiliates, or any Subsidiary Person in which any ▇▇▇▇ Party or its Affiliates own five percent (5%) or more of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;Capital Stock.
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Any Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;Collective Bargaining Agreement,
(xii) that is a Company Real Property Lease with remaining obligations in excess Any Contract involving the design, development, licensing, or operation of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which an online gaming business for the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesCompanies.
(b) Each Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on upon the Company or the applicable Subsidiary of the Company, as the case may be, that is party thereto (and, to the Knowledge of the CompanySeller’s Knowledge, each upon all other party parties thereto), in accordance with its terms and (B) is in full force and effect. There is no, except (i) as may be limited and since January 1, 2015 there has been no, breach or violation of or default by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor that is a party thereto or, to Seller’s Knowledge, by any Subsidiary other party, under any of the Company hasMaterial Contracts in any material respect, andwhether or not such breach, violation or default has been waived. No event has occurred with respect to the Companies or, to the Knowledge of the CompanySeller’s Knowledge, none of the any other parties thereto haveparty, violated any provision ofwhich, with notice or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) , would constitute a breach of material breach, violation or default of, or give rise to a right of termination, modification, or acceleration under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoingMaterial Contracts. To the Knowledge Seller has made available to Purchaser copies of the Companyall Material Contracts, since February 1which copies are true, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened correct and complete in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectall material respects.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Schedule 3.1.29 lists each of the date hereof, neither the Company nor any Subsidiary of following contracts to which the Company is a party party, or by which its assets are bound (the “Material Contracts”):
(a) any distributor, sales, advertising, agency or manufacturer’s representative Contract;
(b) any continuing Contract for the purchase of materials, supplies, equipment or services involving more than $50,000 over the life of the Contract;
(c) any Debt Instrument or any currency exchange, interest rate, commodities or other hedging arrangement or any leasing transaction of the type required to be capitalized in accordance with generally acceptable accounting principles;
(d) any Contract for capital expenditures in excess of $50,000 in the aggregate;
(e) any Contract under which the Company is a lessor of any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property in each case, providing for aggregate payments in excess of $10,000 over the remaining term;
(f) any confidentiality, secrecy or non-disclosure Contract (whether the Company is bound by a beneficiary or obligor thereunder) relating to any Contract:proprietary or confidential information;
(g) any non-competition, non-solicitation or similar Contract limiting the freedom of the Company to compete in any line of business or any geographic area, acquire or sell goods or services or establish the prices for its goods or services;
(h) any Contract that provides for aggregate payments of more than $50,000 over the remaining term and that expires, or may expire if the same is not renewed or extended at the option of any Person other than the Company, more than one year after the date of this Agreement;
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure commitment for which future payments are required charitable contributions in excess of $5,000,00050,000;
(vij) relating to the disposition any material quotations, orders or acquisition of any business, equity, or all or substantially all of the assets of any Person tenders for Contracts with aggregate consideration in excess of $5,000,000 50,000 which remain open for acceptance;
(k) any Contract entered into by the Company or any of its Subsidiaries outside of other than in the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;with aggregate consideration in excess of $50,000; or
(viil) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, Contract that is material to the Company Business. True and its Subsidiariescomplete copies of all the Material Contracts or written summaries of the material terms of oral Material Contracts are contained in the Data Room, taken including any amendments to those Material Contracts. The Material Contracts listed in Schedule 3.1.29 are in full force and effect and in good standing with no amendments except as a whole;
(viii) relating to disclosed in Schedule 3.1.29. Except as disclosed in Schedule 3.1.29, there are no outstanding defaults or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire violations under any debt securities, of those Material Contracts on the part of the Company or any Subsidiary or, to the knowledge of the CompanyVendors, or any guarantee by on the Company or of its Subsidiaries of the obligations part of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and other party to any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedgingthose Material Contracts. Except as disclosed in Schedule 3.1.29, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise there are no current material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends negotiations with respect to the renewal, repudiation or amendment of any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) listed in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSchedule 3.1.29.
Appears in 1 contract
Material Contracts. (a) Except Schedules 2.15(a)(i) through (ixxvi) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Disclosure Letter set forth a list of each of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party to or is bound by any Contract:that are in effect on the Agreement Date (the “Material Contracts”):
(i) that is any Contract with a “material contract” (as such term is defined in Item 601(b)(10A) of Regulation S-K of the Exchange Act)Significant Customer or (B) Significant Supplier;
(ii) that is with the ten (10) largest customers of any Contract providing for payments by the Company and its Subsidiaries during (or under which the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time periodCompany has made payments) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course period since January 1, 2013 in an aggregate amount of business, $25,000 or more and other similar any Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable providing for payments to the Company (or its Subsidiaries)under which the Company has received such payments) in an aggregate amount of $15,000 or more on a monthly basis;
(iii) that is with any dealer, distributor, referral or similar agreement, or any Contract providing for the ten (10) largest vendors grant of rights to reproduce, license, market, refer or sell its products or services to any other Person or relating to the advertising or promotion of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Business or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable any third parties advertise on any websites operated by the Company);
(iv) (A) any joint venture Contract, (B) any Contract (other than a Contract disclosed under clause (iii) above) that is involves a Government Contractsharing 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;
(v) evidencing a capital expenditure for any separation agreement or severance agreement with any current or former employees under which future payments are required in excess of $5,000,000the Company has any actual or potential Liability;
(vi) any Contract for or relating to the disposition employment or acquisition service of any businessdirector, equityofficer, employee, consultant or all or substantially all beneficial owner of more than 5% of the assets total shares of Company Common Stock or any Person for aggregate consideration in excess other type of $5,000,000 Contract with any of its officers, employees, consultants or beneficial owners of more than 5% of the total shares of Company Common Stock, as the case may be other than contracts terminable by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant without notice and without further liability to which the Company or its Subsidiaries have material continuing obligationsfollowing termination;
(vii) containing any Contract (A) a covenant pursuant to which any other party is granted exclusive rights or other provision limiting in “most favored party” rights of any material type or scope with respect the ability to any of the Company Products or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessIntellectual Property, (B) “most favored nation”, “exclusivity” containing any non-competition covenants or similar provisionsother restrictions relating to the Company Products or Company Intellectual Property, (C) a right that is set forth on Schedule 2.11(k) of first refusal the Company Disclosure Letter or right of first offer or similar right (D) that limits or would limit the ability freedom of the Company or any of its Subsidiaries successors or assigns or their respective Affiliates to sell(I) engage or participate, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or compete with any other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesPerson, in each caseany line of business, that is material market or geographic area with respect to the Company and its SubsidiariesProducts or the Company Intellectual Property, taken as a wholeor 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;
(viii) relating to any standstill or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, similar agreement containing provisions prohibiting a third party from purchasing Equity Interests of the Company or any Subsidiary assets of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries otherwise seeking to influence or between or among any wholly-owned Subsidiaries of exercise control over the Company);
(ix) other than Open Source Materials or “shrink wrap” and similar generally available commercial end-user licenses to software that have an individual acquisition cost of $5,000 or less, 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 hedgingThird-Party Intellectual Property Rights used in the development, swap, derivative, marketing or similar Contractlicensing of the Company Products;
(x) that any license, sublicense or other Contract to which the Company is a license party and pursuant to which any Person is authorized to use any Company-Owned Intellectual Property Rights;
(or a covenantxi) any license, consent sublicense or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) Contract pursuant to which the Company has agreed to any restriction on the right of the Company to use or enforce any Subsidiary received licensing revenues Company-Owned Intellectual Property Rights or pursuant to which the Company agrees to encumber, transfer or sell rights in or with respect to any Company-Owned Intellectual Property Rights;
(xii) any Contracts (including any policies, rules and similar materials) relating to the membership of, or participation by, the Company in, or the affiliation of the Company with, any industry standards group or association, including but not limited to any standard-setting organizations or standards-related activities;
(xiii) any Contract providing for the fiscal year ended January 31development of any Intellectual Property, 2024 in excess of $1,000,000independently or jointly, either by or for the Company (other than employee invention assignment agreements and consulting agreements with Authors on the Company’s standard form of agreement, copies of which have been made available to Acquirer);
(xiv) any confidentiality, secrecy or non-exclusive licenses granted to customers disclosure Contract other than any such Contract entered into by the Company in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease business consistent with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)past practice;
(xv) any stockholders’ agreementContract to license or authorize any third party to manufacture or reproduce any of the Company Products or Company Intellectual Property;
(xvi) any Contract containing any indemnification, proxywarranty, voting trust support, maintenance or service obligation or cost on the part of the Company;
(xvii) any settlement agreement with respect to any Legal Proceeding;
(xviii) any Contract pursuant to which rights of any third party are triggered or registration rights agreement become exercisable, or similar agreementsunder which any other consequence, arrangements result or commitments 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, either alone or in combination with any other event;
(xix) 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 equity shares of Company Capital Stock or any other securities of the Company or any options, warrants, convertible notes or other rights to purchase or otherwise acquire any such shares of its Subsidiaries stock, other securities or relating to dispositionoptions, voting warrants or dividends with respect to any equity securities other rights therefor, except for the repurchase rights disclosed on Schedule 2.2(a) or Schedule 2.2(b) of the Company Disclosure Letter;
(xx) any Contract with any labor union or any collective bargaining agreement or similar contract with a group of its Subsidiaries; oremployees;
(xvixxi) is with an affiliate any trust indenture, mortgage, promissory note, loan agreement or other Person that would be Contract for the borrowing of money, any currency exchange, commodities or other hedging arrangement or any leasing transaction of the type required to be disclosed under Item 404 capitalized in accordance with GAAP;
(xxii) any Contract of Regulation S-K promulgated under the Exchange Actguarantee, surety, support, indemnification (other than pursuant to its standard customer agreements), assumption or endorsement of, or any similar commitment with respect to, the Liabilities or indebtedness of any other Person;
(xxiii) any Contract solely among for capital expenditures in excess of $10,000 in the aggregate;
(xxiv) any Contract pursuant to which the Company and its whollyis 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 $10,000 per annum;
(xxv) any Contract pursuant to 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, purchase of assets, license or otherwise, or any Contract pursuant to which it has any material ownership interest in any other Person; and
(xxvi) any Contract with any Governmental Entity, any Company Authorization, or any Contract with a government prime contractor, or higher-owned Subsidiariestier 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”).
(b) Each Contract All Material Contracts are in written form. The Company has performed in all of the type described above material obligations required to be performed by it and is entitled to all benefits under, and is not alleged to be in Section 4.15(a)material default in respect of, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “any Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all . Each of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcysubject only to the effect, insolvencyif any, moratorium of applicable bankruptcy and other similar Applicable Law affecting creditors’ the rights of creditors generally and by general principles rules of equity law governing specific performance, injunctive relief and (ii) as other equitable remedies. There exists no default or event of default or event, occurrence, condition or act, with respect to the Company 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 not, individually or in the aggregate, reasonably be expected to have (i) become a Company material default or event of material default under any Material Adverse Effect. Neither Contract or (ii) give any third party (A) the Company nor right to declare a material default or exercise any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of material remedy under any Material Contract, except (B) the right to a rebate, chargeback, refund, credit, penalty or material change in each case for those violationsdelivery schedule under any Material Contract, acts (C) the right to accelerate the maturity or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as performance of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary obligation of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to under any Material Contract has (A) canceled or otherwise terminatedContract, or threatened in writing (D) the right to cancel, terminate or modify any Material Contract. The Company has not received any notice or other communication regarding any actual or possible violation or breach of, default under, or intention to cancel or otherwise modify any Material Contract. The Company has no Liability for renegotiation of Government Contracts. True, correct and complete copies of all Material Contracts have been made available to terminate, its relationship with Acquirer at least two Business Days prior to the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAgreement Date.
Appears in 1 contract
Sources: Agreement and Plan of Reorganization (Marin Software Inc)
Material Contracts. (a) Except (iSection 4.17(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Disclosure Schedule contains an accurate and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereof, neither of the following Contracts (excluding Company nor any Subsidiary of Employee Benefit Plans) to which the Company is a party to or by which it is bound as of the date hereof (each such Contract, together with each Contract required to be filed by any Contract:
(i) that is the Company as a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);SEC) a “Material Contract”):
(iii) that is with each Contract (1) materially limiting the ten (10) largest customers freedom or right of the Company to engage in any line of business or compete with any other Person in any geographic area; (2) containing any “most favored nations” terms and its Subsidiaries during conditions (including with respect to pricing) or exclusivity obligations; (3) granting any right of first refusal, right of first offer, right of negotiation or similar right with respect to any material assets or business of the fiscal year ended January 31 Company or (4) containing any other term, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders condition or statements of work clause that individually or invoices entered into in the ordinary course of businessaggregate, and other similar Contracts that are ancillary limits or purports to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting limit in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areaown, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessoperate, (B) “most favored nation”manufacture, “exclusivity” or similar provisionssell, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to selldistribute, transfer, pledge or otherwise dispose of assetsany material assets or business of the Company;
(ii) each Contract that provides for indemnification (or reimbursement or advancement of legal fees or expenses) of any current or former officer, rights director or properties employee of the Company;
(iii) each Lease under which the Company leases, subleases, licenses or sublicenses any real property (Dwhether as lessor or lessee);
(iv) a minimum purchaseeach Contract not otherwise disclosed pursuant to this Section 4.17(a) requiring payment by or to the Company of more than an aggregate of $500,000 for the year ended December 31, minimum volume2023;
(v) each Contract that constitutes any acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingentcontingent payment obligations) that would reasonably be expected to result in the receipt or making of future payments in excess of $250,000;
(vi) each Contract for any joint venture, deferred partnership, strategic alliance, collaboration, material research or fixed payment obligation of material development project or similar arrangement;
(vii) each Contract relating to the Company and its Subsidiaries, in each case, Product that is material to the Company’s business and in each case that relates to the research, testing, clinical trial, development, commercialization, manufacture, marketing, importation, exportation, sale, distribution, or supply of the Company and its Subsidiaries, taken as a wholeProduct;
(viii) relating each Contract (other than trade debt or letters of credit incurred in the ordinary course of business consistent with past practice and the documentation executed in connection with the Bridge Loan) related to or evidencing indebtedness Indebtedness for borrowed money, debt securities, warrants money or other rights to acquire any debt securities, guarantees thereof or the granting of Liens over the property or assets of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyother than Permitted Liens);
(ix) each Contract under which the Company has, directly or indirectly, made any hedgingloan, swap, derivativeextension of credit or capital contribution to, or similar Contractother investment in, any Person (other than investments in marketable securities in the ordinary course of business consistent with past practice);
(x) that is each Contract containing a license (standstill or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary similar obligation of the Company to Company Intellectual Property a Third Party (A) on an exclusive basis, (B) pursuant to which other than any Contract entered into with other potential bidders in connection with the process involving the sale of the Company or any Subsidiary received licensing revenues for which by their terms will expire upon the fiscal year ended January 31, 2024 in excess public announcement of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeTransactions);
(xi) that is a license each Contract containing continuing obligations or interests involving (or a covenant, consent 1) “milestone” or other rights in similar contingent payments, including upon the achievement of regulatory or to use Intellectual Propertycommercial milestones or (2) payment of Third Party Rights granted to royalties or other amounts calculated based upon sales, revenue, income or similar measure of the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeProduct;
(xii) that is a Company Real Property Lease with remaining obligations each Contract in excess respect of Indebtedness of $1,000,000250,000 or more;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or each Contract with any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Governmental Authority;
(xiv) that is a settlement, conciliation or similar each Outbound IP License Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);and Inbound IP License Contract; and
(xv) any each stockholders’ agreement’, proxyinvestor rights, voting trust agreement or registration rights agreement rights, tax receivables or similar agreements, arrangements or commitments related Contract or any Contract relating to the exercise of any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends rights with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesSecurities.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither , (i) each of the Material Contracts is legal, valid, binding and in full force and effect and is enforceable in accordance with its terms by the Company nor any Subsidiary of the Company has, and, to the Knowledge knowledge of the Company, none of each other party thereto, subject to the Bankruptcy and Equity Exception; (ii) the Company is not in default under any Material Contract, nor, to the knowledge of the other parties thereto haveCompany, violated does any provision ofcondition exist that, with notice or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) , would constitute a default thereunder by the Company; and (iii) to the knowledge of the Company, no other party to any Material Contract 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. As of the date hereof, the Company has not received or given any written notice of termination or cancellation under any Material Contract or received or given any written notice of breach of or default under, the provisions of in any material respect under any Material Contract, except in each case for those violations, acts (or failures which breach has not been cured. The Company has made available to act) Parent accurate and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as complete copies of February 1, 2021, to the Knowledge all of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContracts.
Appears in 1 contract
Material Contracts. (a) Except (iSchedules 3.18(a)(i)-(xiv) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to Disclosure Schedules list each written or is bound by any Contract:
oral Contract (ix) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended since January 311, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant 2011 to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to is a party or (y) by which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or their respective properties or assets is currently bound with ongoing obligations (Dother than obligations solely as a result of ongoing confidentiality obligations) and identifies which subparagraph is applicable to such Contract (such contracts and agreements as described in this Section 3.18(a) being “Material Contracts”):
(i) any Contract (or group of related Contracts), other than employment Contracts, which is not terminable on less than ninety (90) days’ notice and that involves future obligations of the Company, its Subsidiaries or its employees in a minimum purchasedollar amount in excess of $50,000;
(ii) any employment Contract (A) providing annual compensation in excess of $100,000, minimum volume, “earnout” or other contingent, deferred (B) that it is not terminable at will on notice of thirty (30) days or fixed less without payment obligation of any severance;
(iii) any Contract that involves future obligations of the Company and its Subsidiariesin excess of $50,000 with sales agents, in each casesales representatives, that sales brokers or distributors;
(iv) any partnership, joint venture agreement, development, joint development or similar arrangement which is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xiv) that is a license (any Contract for the borrowing or a covenant, consent lending of money and any guaranty agreement or other rights in or to use Intellectual Propertyevidence of indebtedness, including Capitalized Lease Obligations;
(vi) any Contract granting any Person an Encumbrance on any of Third Party Rights granted to the material assets of the Company or any Subsidiary of its Subsidiaries;
(vii) any Contract involving a dollar amount in excess of $50,000 providing for the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant license of any Intellectual Property to which or from the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 of its Subsidiaries;
(viii) any Contract involving a dollar amount in excess of $1,000,000, and/or (C) that is otherwise material to 50,000 containing any provisions requiring the Company and its Subsidiaries taken as a wholeto indemnify any other party thereto;
(xiiix) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from any Contract pursuant to which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any current or future Affiliate of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements them is or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities would be restricted from conducting the business of the Company or any of its Subsidiaries or relating any current or future Affiliate of any of them in any material respect at any time, in any manner or at any place in the world, or the expansion thereof to dispositionother geographical areas, voting customers, suppliers or dividends lines of business, or that grants the other party or any third person “most favored nation” or similar status, except for the following insofar as they do not impose the foregoing restrictions on the Company’s or any of its Subsidiaries’ right to conduct or expand their business (and only restrict such right with respect to the other party or parties thereto) (A) the Company’s employment agreements in the form previously furnished to Acquiror, (B) the Company’s standard independent contractor agreements in the form previously furnished to Acquiror and (C) the Company’s standard separation statement for departing employees substantially in the form previously furnished to Acquiror;
(x) any equity securities Contract of any character (contingent or otherwise) pursuant to which any employee or consultant is or may be entitled to receive any payment based on the revenues, earnings or financial performance or assets of the Company or any of its Subsidiaries or calculated in accordance therewith;
(xi) any agency Contract whereby the Company purports to grant a right to market or sell its products or any agency Contract affecting the Company’s or any of its Subsidiaries’ exclusive right to develop, market or sell its products;
(xii) any Contract pertaining to any customer of the Company or any of its Subsidiaries which represents more than 5% of the Company’s revenues in any of the last three (3) fiscal years or any Contract with an independent warehouse used by the Company or any of its Subsidiaries which is material to the Company or its Subsidiaries; 52
(xiii) Contracts that contain unlimited indemnification obligations by the Company or any of its Subsidiaries or that does not contain a limitation on the Company's liability;
(xiv) Contracts with any Governmental Authority;
(xv) Any Contract that relates to the settlement of any Action or any legal proceeding;
(xvi) any Contract with material suppliers to the Company or any of its Subsidiaries; or
(xvixvii) is with an affiliate or any other Person Contract that would be required to be disclosed under Item 404 of Regulation S-K promulgated filed with the SEC as an exhibit to a registration statement on Form S-1 if the Company or such Subsidiary were registering securities under the Exchange Securities Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract The Company has made available to Acquiror true and complete copies of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for all Material Contracts that have expired or terminated by their terms, and all of the amendments thereto. Each Material Contracts are Contract (Ai) is valid and binding on the Company or the applicable Subsidiary, as the case may be, and, to the Knowledge of the Company, the counterparties thereto, and is in full force and effect, enforceable against the Company or its Subsidiaries, as the case may be, and, to the Knowledge of the Company, against all third parties, in each case in 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); and (ii) shall continue in full force and effect upon consummation of the transactions contemplated by this Agreement, enforceable against the Company or a Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party theretoagainst all third parties, and (B) in full force and effectaccordance with its terms, except (i) as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other or similar Applicable Law laws affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually regardless of whether considered in a proceeding in equity or in the aggregate, reasonably be expected to have a Company Material Adverse Effectat law). Neither the Company nor any Subsidiary None of the Company hasor any of its Subsidiaries is in breach of, andor default (with or without the giving of notice, with lapse of time or both) under, any Material Contract. To the Knowledge of the Company, no other party to any Material Contract is in default thereunder, nor, to the Knowledge of the Company, none of does any condition exist that with the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) both would constitute a breach of or default under, the provisions of by any Material Contractsuch other party thereunder, except in each case for those violations, acts (or failures to act) and such defaults whichas, individually or in the aggregate, would have not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company had and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect. No other party to any Material Contract has (i) notified the Company that such other party intends to cancel or otherwise terminate such Material Contract or (ii) since December 31, 2013, taken any action or threatened to take any action, with respect to seeking a repayment of amounts paid to the Company or any of its Subsidiaries pursuant to such Material Contract or a reduction in fees or other payments that will become due to the Company or any of its Subsidiaries pursuant to such Material Contract.
Appears in 1 contract
Material Contracts. (a) Except Schedule 4.21 sets forth a true and complete list of all Contracts and other instruments (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as exception of the date hereof, neither the Company nor any Subsidiary of the Company License Agreements listed on Schedule 4.19(b)) to which each Thane Entity is a party that are material to the business, operations, properties, prospects or is bound by financial condition of any Contractof them (collectively, the "Thane Commitments"), including without limitation:
(i) that is a “any material contract” (as such term is defined in Item 601(b)(10) agreement, Contract or commitment relating to the employment of Regulation S-K of the Exchange Act)any Person by any Thane Entity, or any bonus, deferred compensation, pension, profit sharing, Option, employee stock purchase, retirement or other employee benefit plan;
(ii) that is any material agreement, indenture or other instrument which contains restrictions with the ten respect to payment of dividends or any other distribution in respect of its capital stock;
(10iii) largest customers any agreement, Contract or commitment relating to capital expenditures in excess of the Company and its Subsidiaries during the $100,000 in any fiscal year ended January 31year;
(iv) any agreement to acquire, 2024 directly or indirectly, any equity interest in or assets of any other Person (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementsother than purchases of supplies, data processing agreementsinventory, purchase orders or statements of work or invoices entered into equipment in the ordinary course of business) whether or not the transactions contemplated thereby have been consummated, and other similar Contracts that are ancillary under which an Thane Entity continues to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)have any outstanding obligations;
(iiiv) that is with the ten any loan (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than accounts receivable from trade debtors arising in the ordinary course of business) or advance to (other than travel or entertainment advances to employees made in the ordinary course of business), and other similar Contracts that are ancillary or Investment in, any Person or any agreement, Contract or commitment relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000Investment;
(vi) any agreement relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration Indebtedness in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations100,000;
(vii) containing (A) a covenant any guarantee or other provision limiting contingent liability in respect of any Indebtedness or obligation of any other Person (other than the endorsement of negotiable instruments for collection in the ordinary course of business) in excess of $100,000;
(viii) any material respect management service, consulting, financial advisory or any other similar type Contract including, without limitation, any Contract with any investment or commercial bank;
(ix) any material agreement, Contract or commitment limiting the ability of the Company or any Subsidiary of the Company Thane Entity to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractPerson;
(x) that is a license (any agreement, Contract or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to commitment which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 involves payments in excess of $1,000,000100,000 in any calendar year and is not cancelable without penalty within thirty (30) days;
(xi) any agreement, Contract or commitment for the disposal of a material amount of assets or properties of any Thane Entity (other than non-exclusive licenses granted sales to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole);
(xii) that any agreement, Contract or commitment which is material to any Thane Entity and contain a Company Real Property Lease with remaining obligations "change in excess of $1,000,000control" or similar provision;
(xiii) that involves a any agreement, Contract or commitment relating to any material joint venture, profit sharingpartnership, partnership strategic alliance or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024arrangement;
(xiv) that is a settlementany material agreement, conciliation Contract or similar Contract (x) commitment with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Affiliate;
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends source code agreements with respect to any equity securities of the Company or any of its Subsidiariesthird parties; orand
(xvi) is with an affiliate any other material agreement, Contract or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariescommitment.
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the CompanySchedule 4.21, each other party thereto, and (B) Thane Commitment is in full force and effecteffect on the date hereof. No Thane Entity is in default in respect of any Thane Commitment, and no event has occurred which, with due notice or lapse of time or both, would constitute such a default, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would for any such defaults that could not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to To the Knowledge of the CompanyThane, none no other party to any of the other parties thereto have, violated any provision of, or committed or failed to perform any act underThane Commitments is in default in respect thereof, and no event has occurred which, with due notice or condition exists, which (with or without notice, lapse of time or both) , would constitute such a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectdefault.
Appears in 1 contract
Sources: Agreement and Plan of Merger (Reliant Interactive Media Corp)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 3.13 of the date hereof, neither Disclosure Schedule lists the Company nor any Subsidiary of following agreements to which the Company is a party to or is bound by any Contractand which are in effect on the date hereof:
(i) that is any contract requiring a “material contract” (as such term is defined capital expenditure by the Company in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$5 million in any calendar year;
(ii) that is with the ten (10) largest customers of any contract requiring known or liquidated expenditures or payments by the Company and its Subsidiaries during the fiscal year ended January 31in excess of $5 million in any calendar year, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts than those that are ancillary to Contracts pursuant to which revenue is paid or payable to can be terminated without material penalty by the Company or its Subsidiaries)upon not more than 180 days’ notice;
(iii) that is with the ten (10) largest vendors of any contract under which the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid is obligated to such vendors by the Company during such time period) sell or lease personal property (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements sales of work or invoices entered into items of inventory in the ordinary course Ordinary Course of business, and other similar Contracts that are ancillary Business) to Contracts pursuant to which cost another Person having a value in excess of goods and services is paid or payable by the Company)$5 million in any calendar year;
(iv) any contract that is contains a Government Contractcovenant not to compete or restricts the rights of the Company to freely engage in business anywhere in the world;
(v) evidencing a capital expenditure any contract under which the Company has (A) created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) indebtedness for which future payments are required borrowed money in excess of $5,000,00025 million individually or in the aggregate, (B) granted a Lien on its assets, whether tangible or intangible, to secure such indebtedness for borrowed money in excess of $25 million individually or in the aggregate or (C) extended credit to any Person, in each case, in an amount in excess of $5 million of committed credit;
(vi) relating to the disposition any collective bargaining or acquisition of any business, equity, similar labor contracts or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsagreements;
(vii) containing (A) any contract establishing any joint venture, partnership or limited liability company involving a covenant or other provision limiting in any material respect the ability sharing of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete profits and losses with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholePerson;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of contract with any Governmental Authority under which the Company is required to pay more than $5 million in any calendar year or receives benefits of more than $5 million in any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)calendar year;
(ix) any hedgingcontract with any supplier under which the Company is obligated to purchase goods (other than capital expenditures) or services, swapincluding advertising, derivativemarketing or promotion of Company products, involving consideration in excess of $5 million in any calendar year (except with respect to purchase of items of inventory in the Ordinary Course of Business), or similar Contractthat is not terminable by the Company upon notice of 180 days or less;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary contract with any customer of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to under which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 is obligated to sell Company products in an amount in excess of $1,000,000, other than non-exclusive licenses granted to customers 5 million in the ordinary course of business, and/or (C) any calendar year or that is otherwise material to not terminable by the Company and its Subsidiaries taken as a wholeupon notice of 180 days or less;
(xi) that is a license (any contract or a covenant, consent or other rights in or to use Intellectual Property) series of Third Party Rights granted to related contracts for the Company or sale of any Subsidiary asset of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 involving consideration in excess of $1,000,0005 million individually, and/or (C) that is otherwise material or $10 million in the aggregate, except with respect to sales of items of inventory in the Company and its Subsidiaries taken as a wholeOrdinary Course of Business;
(xii) that any contract under which the Company is obligated to make any payment or which otherwise becomes due as a Company Real Property Lease with remaining obligations in excess result of $1,000,000the consummation of the transactions contemplated hereby (including all transaction bonuses, change of control payments, “stay” bonuses, “phantom” stock and similar payments);
(xiii) any contract that involves contains a material joint venture, profit sharing, partnership “take or pay” or other similar agreement from which terms involving the Company or any of its Subsidiaries recognized revenues expenditure in excess of $1,000,000 during 5 million or that is not terminable by the fiscal year ended January 31, 2024Company upon notice of 180 days of less;
(xiv) any contract obligating the Company to sell goods containing a “most favored nation” or other similar pricing terms involving consideration in excess of $5 million or that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require not terminable by the Company upon notice of 180 days or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)less;
(xv) any stockholders’ agreement, proxy, voting trust agreement contract containing a minimum sales or registration rights agreement volume requirement or similar agreements, arrangements providing for rebates in excess of $5 million or commitments relating to any equity securities of that is not terminable by the Company upon notice of 180 days or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; orless;
(xvi) is any material contract with an affiliate any present employee, contractor or other Person that would be required to be disclosed under Item 404 consultant of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company for employment, separation from employment, or to perform services; and
(xvii) to the Company’s Knowledge, any other agreement which is material to the operations and its wholly-owned Subsidiariesbusiness of the Company, taken as a whole, whether or not in the Ordinary Course of Business, the termination of which would have a Material Adverse Effect on the Company. All contracts set forth in Section 3.11, 3.13 and 3.16(a) of the Disclosure Schedule are referred to herein as “Material Contracts.”
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a3.13 of the Disclosure Schedule, (i) each Material Contract is in full force and effect and is the legal, valid and binding obligation, subject to the Remedies Exception, of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of Company’s Knowledge, the Companyother parties thereto (the “Other Parties”), each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notneither the Company, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andnor, to the Knowledge Company’s Knowledge, any of the CompanyOther Parties to any Material Contract is in breach, none of the other parties thereto have, violated any provision of, violation or committed or failed to perform any act underdefault, and no event has occurred which with notice or condition exists, which (with or without notice, lapse of time or both) both would constitute a breach of breach, violation or default underby the Company or, to the provisions of Company’s Knowledge, any Other Party, or permit termination, modification, or acceleration by the Other Parties under such Material Contract, except in each case for those violationsbreaches, acts (violations or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEffect on the Company.
Appears in 1 contract
Sources: Stock Purchase Agreement (Kapstone Paper & Packaging Corp)
Material Contracts. (a) Except Section 3.10(a) of the Seller Disclosure Letter sets forth a true and complete list of the Contracts with any party other than (x) Seller and its Affiliates or (y) except with respect to clauses (iii) and (iv) below, any original equipment manufacturer or supplier to the Business, that are (in each case) primarily related to the Acquired Business (provided, with respect to clause (i) as filed as exhibits below, solely to the Company SEC Documentsextent relating to an Assigned Contract and, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and respect to clauses (iii) and (iv) below, including with respect to any Contract with original equipment manufacturers or suppliers to the Business that relates to the Acquired Business) and that provide for Company Employee Plansany of the following, in each case, which are in effect as of the date hereof (such Contracts, together with any Contract which, had it been entered into prior to the date hereof, neither the Company nor any Subsidiary would have been required to be listed on Section 3.10(a) of the Company is a party to or is bound by any Contract:Seller Disclosure Letter, the “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any covenant expressly prohibiting or materially restricting the ability of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Seller or any of its Subsidiaries outside Affiliates to conduct the Acquired Business, limiting or purporting to limit Seller or any of its Affiliates, or which following the ordinary course Closing would limit or purport to limit Purchaser or any of its Affiliates, in each case, from engaging in any material line of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting competing in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areaarea or during any period of time, providing for any exclusivity obligations, granting any exclusive rights to products or services, obligating the Acquired Business or any counterparty to purchase or obtain a minimum or specified amount (other than where such amount is less than $5,000,000 (or equivalent) per annum) of any customary employee non-solicitation product or no-hire clauses entered into in the ordinary course of businessservice, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a granting any right of first refusal or refusal, right of first offer or similar right that limits the ability with respect to any material assets of the Company Acquired Business;
(ii) any annual payment or any annual receipt of its Subsidiaries royalties or similar payments of more than $5,000,000 in the aggregate;
(iii) annual payments or consideration furnished (A) to sell, transfer, pledge or otherwise dispose the Acquired Business in excess of assets, rights or properties $5,000,000 or (DB) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation by the Business in excess of the Company and its Subsidiaries$50,000,000, in each case, that is material to in the Company and its Subsidiaries12-month period ended September 30, taken as a whole2016;
(viiiiv) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, Contract with any of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person Material Counterparties (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company Seller and its Subsidiaries taken as a whole;
(xiAffiliates or the SHO Group) that is a license (providing for annual payments or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations consideration in excess of $1,000,000;
(xiiiv) that involves any grant of a right or license (A) by a third party in favor of Seller or any of its Affiliates to Acquired Business Intellectual Property, or (B) by Seller or any of its Affiliates in favor of any third party to Acquired Business Intellectual Property, in each case under a Contract involving annual payments in excess of $5,000,000; and
(vi) any material joint venture, profit sharingstrategic alliance, partnership or similar agreement from which the Company arrangement involving a sharing of profits or any expenses of its Subsidiaries recognized payments based on revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities profits of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesAcquired Business.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (aSchedule 4.1(r) Except (i) as filed as exhibits set forth the Contracts to which any Seller is a party with respect to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into Acquired Business or by which any of them or their assets may be bound in connection with the transactions contemplated hereby and Acquired Business (iii) for Company Employee Planseach such Contract required to be disclosed in Schedule 4.1(r), as of including each such Contract entered into after the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is a party to or is bound by any “Material Contract:”):
(i) any Contract (other than purchase orders with suppliers or customers entered into in the Ordinary Course of Business) that is a “material contract” (as such term is defined in Item 601(b)(10) Sellers reasonably anticipate will involve aggregate payments by or to Sellers of Regulation S-K of the Exchange Act)more than $50,000;
(ii) that any Contract for the lease of real or personal property in which the amount of payments which the Acquired Business is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31required to make, 2024 (as determined based or is entitled to receive, on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)an annual basis exceeds $50,000;
(iii) that any material distribution, franchise, license, sales, commission, consulting agency or advertising Contract which (A) involves annual payments in excess of $50,000 or (B) is with the ten not cancellable on thirty (1030) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders calendar days’ notice without payment or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)penalty;
(iv) that is a Government Contractany Contract relating to or instrument evidencing, any Assumed Liabilities;
(v) evidencing a capital expenditure for any Contract entered into during the last five (5) years (or under which future payments there are required continuing material obligations) relating to the sale or disposition of material assets (other than the sale of inventory or obsolete or worn-out assets or assets replaced in excess the Ordinary Course of $5,000,000Business);
(vi) any license agreement or other Contract relating to Intellectual Property that is necessary or otherwise material to the disposition or acquisition of any business, equity, or all or substantially all operation of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsAcquired Business;
(vii) containing (A) a covenant any joint venture Contract, partnership agreement, or limited liability company agreement or other provision limiting in Contract (however named) involving a sharing of profits, losses, costs, or liabilities by any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete Seller with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholePerson;
(viii) relating to any Contract providing for capital expenditures after the date hereof in an amount in excess of $100,000 individually or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of in the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)aggregate;
(ix) any hedgingwritten warranty, swap, derivative, guaranty or other similar Contractundertaking with respect to contractual performance extended by any Seller other than in the Ordinary Course of Business;
(x) that is a license (any written employment or a covenant, consent collective bargaining agreement or other rights in or to use Intellectual Property) granted by the Company Contract with any labor union or any Subsidiary of the Company labor organization applicable to Company Intellectual Property (A) on an exclusive basisemployees, (B) pursuant to which the Company or Contract with any Subsidiary received licensing revenues for the fiscal year ended January 31director, 2024 in excess of $1,000,000officer, employee or consultant, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or those (C1) that is otherwise material to are terminable at-will by the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) applicable Seller on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of no more than $1,000,000 after the date of this Agreement thirty (30) days’ notice without liability or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; financial obligation or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Asset Purchase Agreement
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) Excluding Contracts for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, which neither the Company nor any Subsidiary of its Assets will be bound or have liability after Closing, Schedule 4.15(a) sets forth a list of the following Contracts to which the Company is a party to or is by which any of its Assets are bound by as of the Execution Date (the Contracts listed on Schedule 4.15(a) and any Contract:other Contracts that meet the descriptions in this Section 4.15(a) being collectively, the “Material Contracts”):
(i) any Contract for the future purchase, exchange, sale, gathering, compression, collection, storage, processing, treating, dehydration or transportation of Hydrocarbons or the provision of services related thereto that is a “material contract” (as such term is defined results in Item 601(b)(10) gross revenues or gross expenditures in excess of Regulation S-K of the Exchange Act)$500,000;
(ii) that is with the ten (10) largest customers other than Contracts of the Company and its Subsidiaries during nature addressed by Section 4.15(a)(i), any Contract (A) for the fiscal year ended January 31future sale of any Asset, 2024 (as determined based on revenue received from such customers during such time periodB) (excluding any non-disclosure agreementsthat grants a right or option to purchase, data processing agreements, purchase orders lease or statements of work or invoices entered into otherwise acquire in the ordinary course future any Asset, or (C) for the supply of businessgoods or services by the Company, and other than in each case any Contract with a purchase or similar Contracts that are ancillary to Contracts pursuant to which revenue is paid price or payable to the Company or its Subsidiaries)remaining value of less than $500,000;
(iii) that is with the ten (10) largest vendors other than Contracts of the Company and its Subsidiaries during nature addressed by Section 4.15(a)(i), any Contract for the fiscal year ended January 31, 2024 (as determined based on cost receipt of goods and any Assets or services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements requiring future payments in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$500,000;
(iv) any Contract that is constitutes a Government Contractpipeline interconnect or facility operating agreement;
(v) evidencing a capital expenditure any Contract for which future lease of equipment involving aggregate payments are required in excess of $5,000,000500,000 in any calendar year that are not terminable without penalty within 60 days;
(vi) any Contract for expenditures or other approved capital commitments in excess of $500,000;
(vii) any Contract for lease of personal or real property, other than with respect to Company Real Property, involving aggregate payments in excess of $500,000 in any calendar year that are not terminable without penalty within 60 days;
(viii) any outstanding agreement of guaranty by the Company in favor of any Person in an amount in excess of $500,000;
(ix) any Contract with Contributor or any Affiliate of Contributor;
(x) any outstanding futures, swap, collar, put, call, floor, cap, option or other Contracts that are intended to benefit from or reduce or eliminate the risk of fluctuations in the price of commodities;
(xi) Organizational Documents of the Company;
(xii) any Contract relating to the disposition or acquisition by the Company of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company operating business or any of its Subsidiaries outside a majority of the ordinary course capital stock or other controlling interest of business any other Person;
(xiii) any partnership, joint venture or substantially similar Contracts;
(xiv) any Contract with a supplier, vendor or service provider granting such supplier, vendor or service provider exclusive rights to provide such product or service;
(xv) any Contract that contains “take or pay” provisions;
(xvi) any Contract that contains a “most favored nation” provision or a material limitation on price increases;
(xvii) any Contract pursuant to which the Company is responsible for any imbalances (gathering, processing, transportation or its Subsidiaries have material continuing obligationsotherwise) that are associated with the Assets;
(viixviii) containing (A) a any Contract that contains any covenant of the Company that materially limits or other provision limiting in any material respect purports to limit the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than ;
(xix) any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of Contract which relates to Indebtedness under which the Company has outstanding obligations in excess of $500,000 or under which it has imposed a security interest on any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeAssets;
(viiixx) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company employment agreement or any Subsidiary of the Companychange in control agreement, retention agreement, severance, termination or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, separation agreement or similar Contract;
(xxxi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 independent contractor agreement requiring future payments in excess of $1,000,000, other than non-exclusive licenses granted 500,000 with any Person regularly performing services directly related to customers in the ordinary course of Company’s business, and/or (C) that is otherwise material to including the Company and its Subsidiaries taken as a wholeOperator Agreement;
(xixxii) that is a license (excluding the Engagement Letters, any other financial advisory or a covenant, consent similar Contract with investment or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholecommercial banks;
(xiixxiii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority Authority; and
(xxiv) any Contract entered into since February 1, 2021, (y) which would require or assumed by the Company or for which the primary purpose is to provide for the indemnification of any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesPerson.
(b) Each Contract Contributor has made available to Buyer true, correct and complete copies of the type described above in Section 4.15(aall Material Contracts.
(c) Except as set forth on Schedule 4.15(c), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all each of the Material Contracts are (A) is in full force and effect in all material respects and constitutes a legal, valid and binding on obligation of the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of Company’s Knowledge, the Company, each other party thereto, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, arrangement, moratorium and other similar Laws relating to or affecting the rights of creditors generally, and general equitable principles.
(Bd) Except as set forth on Schedule 4.15(d):
(i) the Company has not received written notification that any Material Contract is not in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and or that the Company or any other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and party thereto has breached its obligations thereunder;
(ii) as neither the Company nor, to the Company’s Knowledge, any other party to any Material Contract, is in material breach or material default under any Material Contract; and
(iii) the Company has not received written notification of any event, nor, to the Company’s Knowledge, has any event occurred, that (with or without notice or lapse of time) would not, individually or in the aggregate, reasonably be expected to have result in a Company Material Adverse Effect. 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 any provision material breach of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions terms of any Material Contract or materially adversely affect the value of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Contribution Agreement (Silver Run Acquisition Corp II)
Material Contracts. (a) Except (iSection 2.12(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Disclosure Letter sets forth a true and the other agreements entered into complete list of all Contracts with any third party in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, effect as of the date hereof, neither the Company nor Agreement Date to which any Subsidiary member of the Company Group is a party to or is bound by any of the following categories (each a “Material Contract:”):
(i) that is a “material contract” any Contract (as which shall not include any customary engagement letter with outside counsel) for the purchase, sale, license or use of materials, supplies, equipment, services, Software, Intellectual Property or other assets involving in the case of any such term is defined in Item 601(b)(10Contract with any Person pursuant to which (A) of Regulation S-K the amounts incurred by any member of the Exchange Act)Company Group exceeded $300,000 in calendar year 2024 or are reasonably likely to exceed $300,000 in calendar year 2025 or (B) the payments to any member of the Company Group exceeded $300,000 in calendar year 2024 or are reasonably likely to exceed $300,000 in calendar year 2025;
(ii) each Contract that is with (A) materially restricts the ten (10) largest customers ability of any member of the Company Group, or Parent or its affiliates following the Closing, to compete in any business or with any Person in any geographical area, excluding any restriction on soliciting, hiring or engaging employees or contractors, (B) requires the Company or its subsidiaries, or Parent or its affiliates following the Closing, to conduct any business on a “most favored nations” basis with any third party in favor of any third party in excess of a value of $500,000 in calendar year 2025 or any calendar year thereafter, (C) requires any member of the Company Group, or Parent and its Subsidiaries during affiliates following the fiscal Closing, to purchase all or substantially all of a certain type of good used by the Company Group from a single vendor or group of related vendors(D) containing covenants restricting or purporting to restrict the Company Group from any solicitation of a customer or (E) obligates any member of the Company Group to purchase or otherwise obtain any product or service exclusively from any third party or sell any product or service exclusively to any third party, except in the case of clauses (A), (B), (C) or (D), other than in the case of Parent and its affiliates, due to the operation of Contracts to which Parent or any of its affiliates is a party prior to the Closing;
(iii) each Contract that (A) provides for the grant of an license or covenant not to sue under any material Intellectual Property (I) to any member of the Company Group from any third party or (II) by any member of the Company Group to any third party or (B) provides for the development of any material Intellectual Property by any member of the Company Group for any third party (other than Contracts that assign such Intellectual Property to a member of the Company Group), except, in each case of clauses (A) and (B), for Immaterial IP Contracts;
(iv) each Contract with any Governmental Entity that provides for the provision of funding to any member of the Company Group for research and development activities comprising the creation of any Intellectual Property by or on behalf of any member of the Company Group;
(v) each Contract pursuant to which the Company has appointed a third party as an exclusive distributor or reseller of any Company Owned Product;
(vi) other than any Company Benefit Agreement or Company Benefit Plan, and any Contract that can be terminated for convenience on notice by the Company, each Contract that provides for recurring annual minimum payments or receipts (other than milestone, royalty or similar payments or other contingent payments) in excess of $500,000 in any calendar years after calendar year ended January 312024;
(vii) each Contract (A) relating to indebtedness for borrowed money or any financial guaranty, 2024 letter of credit, indenture, note, swap or similar agreement (as determined based on revenue received from such customers during such time periodB) evidencing, providing for the creation of, or granting any Lien upon any of the property or assets of the Company Group (excluding Permitted Liens), (C) any Contract (I) relating to any loan or advance to any Person which is outstanding as of the date of the Agreement (other than advances to employees and consultants not in excess of in excess of $100,000) or (II) obligating or committing any member of the Company Group to make any such loans or advances and (D) any currency, commodity or other hedging or swap Contract;
(viii) each Contract or group of related Contracts with a single entity or group that provides for the acquisition or disposition of any assets (other than purchases or sales in the ordinary course of business) or any businesses (whether by merger, sale of equity interests, sale of assets or otherwise) that (A) has not yet been consummated or (B) has outstanding any purchase price adjustment, “earn-out,” indemnification, payment or similar obligations on the part of any member of the Company Group;
(ix) each Contract pursuant to which any member of the Company Group has continuing royalty, “earn-out,” milestone or similar payment obligations, including upon the achievement of regulatory or commercial milestones, or any obligation to make payment of royalties or other amounts calculated based upon any revenues or income of the Company Group;
(x) each Contract that obligates any member of the Company Group to make any capital commitment, loan or capital expenditure in an aggregate amount in excess of $100,000 after the Agreement Date;
(xi) each Contract, other than with respect to any partnership that is wholly owned by the Company, 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;
(xii) each material Contract between any member of the Company Group and any Governmental Entity, except for clinical study agreements, material transfer agreements and non-disclosure agreements, data processing agreementsin each case, purchase orders or statements of work or invoices that have been entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from any settlement agreements under which any member of the Company or Group has any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024continuing material obligations (other than confidentiality obligations);
(xiv) that is a settlementeach equityholders’, conciliation investors rights’, registration rights or similar Contract (x) with to which any Governmental Authority entered into since February 1, 2021, (y) which would require member of the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or Group is a party (z) that subjects the excluding Contracts governing Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionsOptions);
(xv) each Contract (including all amendments, extensions and renewals with respect thereto) pursuant to which any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities member of the Company Group leases or subleases any of its Subsidiaries or relating to dispositionreal property (each a “Lease” and, voting or dividends with respect to any equity securities of such real property, the Company or any of its Subsidiaries; or“Leased Real Property”);
(xvi) lease or contract under which any member of the Company Group is with an affiliate lessee of or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Actholds or operates, in each case, any tangible property (other than real property), owned by any Contract solely among other Person, except for any lease or contract under which the aggregate annual rental payments do not exceed $100,000; and
(xvii) lease or contract under which any member of the Company and its wholly-Group is lessor of or permits any third party to hold or operate, in each case, any tangible property (other than real property), owned Subsidiariesor controlled by any member of the Company Group, except for any lease or contract under which the aggregate annual rental payments do not exceed $100,000.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are is valid, binding and enforceable (Aexcept as such enforceability may be limited by the Bankruptcy, Equity and Indemnity Exception and except as such Contracts may be terminated after the Agreement Date not in contravention with Section 4.01) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) for such failures to be valid, binding or enforceable or to be in full force and effect as may is not, and would not reasonably be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notexpected to be, individually or in the aggregate, reasonably be expected material to have a Company Material Adverse Effect. Neither the Company nor Group. There is no material default under any Subsidiary of Material Contract by the Company has, andor, to the Knowledge knowledge of the Company, none of the any other parties thereto have, violated any provision of, or committed or failed to perform any act underparty thereto, and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach of or material default under, thereunder by the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021or, to the Knowledge knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoingother party thereto. To the Knowledge of the Company, since February 1, 2021, no counterparty No third party that is a party to any Material Contract has (A) canceled or otherwise terminatedprovided written or, or threatened in writing to the knowledge of the Company, oral notice to any member of the Company Group of its intent to renegotiate, cancel or otherwise terminate (including by not renewing) any Material Contract to terminatewhich it is a party or to change the parties’ relationship thereunder and there are no claims of material breach or default pending or, its relationship with to the knowledge of the Company, threatened under any Material Contract. The Company or any Subsidiary (has made available to Parent true and complete copies of each Material Contract that is in effect as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, of the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAgreement Date.
Appears in 1 contract
Sources: Merger Agreement (CorMedix Inc.)
Material Contracts. (a) Except (iSection 3.17(a) as filed as exhibits to of the Disclosure Schedule lists, under separate headings, each of the following contracts and agreements of ▇▇▇▇▇▇ Development, the Company SEC Documents, and ▇▇▇▇▇▇ UA that are in effect (ii) for this Agreement such contracts and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:being “Material Contracts”):
(i) all management contracts and contracts with independent contractors or consultants (or similar arrangements) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)are not cancelable without penalty or further payment and without more than 30 days’ notice;
(ii) all leases with respect to the Leased Real Property;
(iii) all contracts and agreements that is (A) limit or purport to limit the ability of ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA to compete in any line of business or with any Person or in any geographic area or during any period of time, (B) creates or purports to create any exclusive relationship or arrangements, (C) grants any Person an option or a first-refusal, first-offer or similar preferential right, or (D) contains most-favored nations pricing or other most-favored nations terms;
(iv) all transportation agreements, services agreements and other agreements which have unexpired terms in excess of one year;
(v) all Personal Property Leases having an annual Liability in excess of $25,000;
(vi) all Related Party Agreements that are not terminated as of the Closing;
(vii) any contract or indenture relating to (A) Indebtedness, (B) placing any Encumbrance (other than Permitted Encumbrances) on any portion of the Assets, or (C) any guaranty of any obligation for borrowed money or other material guaranty;
(viii) any contract relating to the acquisition of assets (other than in the ordinary course of business) or any merger, purchase of stock or other acquisition of any share capital of any business enterprise or material assets or equity interests of any other Person;
(ix) any joint venture or partnership contract pursuant to which ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA holds any securities or other Equity Rights in another Person;
(x) any contract or group of related contracts with the ten (10) largest customers same party for the purchase of tangible products or services that provide for annual payments by ▇▇▇▇▇▇ Development, the Company and its Subsidiaries during the fiscal year ended January 31, 2024 or ▇▇▇▇▇▇ USA in excess of $25,000;
(as determined based on revenue received from such customers during such time periodxi) any contract with (excluding A) Major Customer or (B) Major Supplier;
(xii) any non-disclosure agreements, data processing agreements, purchase orders contract with a Governmental Authority (other than license agreements or statements of work or invoices Permits entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiixiii) any contract under which ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA has advanced or loaned any amount to any other Person;
(xiv) any guaranty of any obligation for borrowed money or other guaranty of any obligation;
(xv) any contract that involves commitments to make capital expenditures or which provide for the purchase of goods or services from any one Person under which the annual expenditures or the undelivered balance of such products or services has a purchase price in excess of $25,000;
(xvi) any contract relating to any settlement of any litigation that (A) was pending against ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA at any time during the last five years, or (B) that is with contains continuing, outstanding or ongoing commitments;
(xvii) any contract relating to the ten (10) largest vendors sale of any of the Company and its Subsidiaries during the fiscal year ended January 31Assets, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(ivxviii) Contracts (A) continuing over a period of more than one year from the date thereof or (B) with any agents, distributors or representatives, in each case that is a Government Contractare not terminable without penalty on 60 days’ notice or less;
(vxix) evidencing a capital expenditure for (A) employment agreements with key or executive employees or which future payments are required deviate in excess of $5,000,000any material respect from the Company’s standard employment agreement as made available to the Purchaser or (B) collective bargaining contracts or contracts with any labor organization, union or association;
(vixx) contracts providing for (A) accelerated vesting, material modification or the payment of any cash or other compensation or benefits upon the consummation of the transactions contemplated hereby or (B) retention, severance (beyond statutory severance), change in control or other similar payments;
(xxi) any contract relating to the disposition or acquisition licensing of IP Rights by any business, equity, or all or substantially all member of the assets ▇▇▇▇▇▇ Group to a third party or by a third party to any member of any Person for aggregate the ▇▇▇▇▇▇ Group, in each case involving consideration in excess of $5,000,000 by the Company or 25,000 per annum, and all other agreements affecting any of its Subsidiaries outside member of the ordinary course of business pursuant ▇▇▇▇▇▇ Group’s ability to which the Company use, commercially exploit or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in disclose any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesIP Rights, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property than (A) on an exclusive basislicenses for commercially available, general purpose, non-customized computer software used by any member of the ▇▇▇▇▇▇ Group and having a license or subscription fee of less than $5,000 per annum or (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to license agreements entered into by any member of the ▇▇▇▇▇▇ Group with customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xixxii) all contracts providing for (A) indemnification (including with respect to IP Rights, employees and directors) or (B) any guaranty of third party obligations, in each case entered into outside the ordinary course of business; and
(xxiii) any contract not otherwise specified above that is a license (involves an annual commitment or a covenantannual payment to or from ▇▇▇▇▇▇ Development, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration ▇▇▇▇▇▇ USA of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries25,000 individually.
(b) Each Contract of the type described above Except as disclosed in Section 4.15(a), whether or not set forth in Section 4.15(a3.17(b) of the Company Disclosure Schedule, each Material Contract (i) is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on ▇▇▇▇▇▇ Development, the Company or the applicable Subsidiary of the Company▇▇▇▇▇▇ USA, as the case may beapplicable, and, to the Knowledge of the CompanySeller, each other party the counterparties thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) upon consummation of the transactions contemplated by this Agreement, except to the extent that any consents set forth in Section 3.03(c) of the Disclosure Schedule are not obtained, shall continue in full force and effect without penalty or other adverse consequence, and (iii) is not the subject of any pending, or to the Knowledge of the Seller, threatened, dispute. Except as would notdisclosed in Section 3.17(b) of the Disclosure Schedule, individually or in the aggregateneither ▇▇▇▇▇▇ Development, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has▇▇▇▇▇▇ USA, andnor, to the Knowledge of the CompanySeller, none any of the other parties thereto havethereto, violated any provision is in material breach of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions of any Material ContractContract to which it is a party (nor does there exist any condition that, except in each case for those violationsupon the passage of time, acts (the giving of notice or failures to act) and defaults which, individually or in the aggregateboth, would not reasonably be expected to have cause such a Company Material Adverse Effect andviolation or default by the Company, as of February 1▇▇▇▇▇▇ USA, 2021or, to the Knowledge of the CompanySeller’s Knowledge, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectparty thereto).
Appears in 1 contract
Material Contracts. (a) Except as listed in Schedule 3.17, none of PFMI, the Company or any of its Subsidiaries is a party to, or bound by, any written or legally binding oral: (i) as filed as exhibits contract, agreement or commitment that (A) has a duration of twelve months or more or (B) requires either party thereto to pay, to the Company SEC Documentsother, $250,000 or more annually; (ii) distribution, marketing, dealer, representative or sales agency agreement, contract or commitment; (iii) lease under which PFMI, the Company or any of the Subsidiaries is the lessor or permits any third party to hold or operate any property, real or personal, owned or controlled by PFMI, the Company or any Subsidiary; (iv) note, debenture, bond, equipment trust agreement, letter of credit agreement, loan agreement or other contract or commitment for this Agreement the borrowing or lending of money or agreement or arrangement for a line of credit or guarantee, pledge or undertaking of the indebtedness of any other Person or other Indebtedness (except for certain immaterial items which in the aggregate do not exceed One Hundred Thousand Dollars ($100,000)); (v) agreement relating to the ownership of or investments in any Person (including investments in joint ventures and minority equity investments); (vi) agreement under which PFMI, the Company or any Subsidiary is a lessee of or holds or operates any personal property owned by any other Person for which the annual rental exceeds $100,000; (vii) agreement relating to the licensing of Intellectual Property by PFMI, the Company or any Subsidiary to another Person or by any Person to PFMI, the Company or any Subsidiary or any other agreement affecting PFMI's, the Company's or any Subsidiary's ability to use or disclose any Company Intellectual Property (other than licenses of off-the-shelf software for an aggregate purchase price of less than $10,000), and all other agreements affecting PFMI's, the Company's or any Subsidiary's ability to use or disclose any Intellectual Property; (viii) nondisclosure or confidentiality agreement, except for agreements entered into during the past ninety (90) days with other potential bidders in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as possible sale of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company Shares and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices other agreements entered into in the ordinary course of business; (ix) contracts with any labor union or any bonus, and pension, profit sharing, retirement or any other form of deferred compensation plan or any stock purchase, stock option or similar Contracts that are ancillary plan or practice, whether formal or informal, or any severance agreement or arrangement; (x) agreements for the employment of any individual on a full time, part-time, consulting, or other basis providing annual compensation in excess of $100,000; (xi) agreement, contract or commitment whereby it has agreed to Contracts pursuant to which revenue is paid or payable to the Company or indemnify any other Person, except for contracts with its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices customers entered into in the ordinary course of business; or (xii) agreement, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid contract or payable by commitment limiting or restraining PFMI, the Company);
(iv) that is , a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition Subsidiary, an Affiliate of any business, equity, of them or all or substantially all of an employee (other than noncompetition agreements between an employee and the assets Company) of any Person for aggregate consideration of them or any of their businesses or successors from engaging or competing in excess any manner or in any business. With respect to each agreement required to be listed in Schedule 3.17, (a) none of $5,000,000 by PFMI, the Company or any of its the Subsidiaries outside of the ordinary course of business pursuant to which the Company are in breach or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting default in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, andnor, to the Knowledge of the CompanyShareholders, each other party theretois any counterparty thereto in material breach or default of such agreement or has any event occurred which, with notice or lapse of time, would constitute a material breach or default, or permit termination, modification, or acceleration under the agreement) under any such agreement; (b) PFMI, the Company and the Subsidiaries have performed in all material respects all of their respective obligations required to be performed by them to date under all such agreements, (c) the agreement is legal, valid, binding, enforceable, and (B) in full force and effect, except (i) as such may be limited by bankruptcy, insolvency, moratorium and reorganization, or other similar Applicable Law Laws affecting creditors’ ' rights generally generally, and by general principles equitable principles; (d) the agreement will continue to be legal, valid, binding, enforceable, and in full force and effect on identical terms immediately following the consummation of equity the transactions contemplated by this Agreement, provided that any consents necessary to undertake such transactions are obtained prior thereto, except as such may be limited by bankruptcy, insolvency, reorganization, or other similar Laws affecting creditors' rights generally, and by general equitable principles; and (iie) as would notto Shareholders' Knowledge, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor no other party has repudiated any Subsidiary provision of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectagreement.
Appears in 1 contract
Material Contracts. (a) Except (ifor those Contracts listed and set forth in Section 3.5(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereofSeller Disclosure Schedule, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar there are no Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for of the fiscal year ended January 31, 2024 in excess Subsidiaries or any of $1,000,000, the Contributing Companies (to the extent primarily relating to the use or operation of the Verizon AssetCo Assets) is a party or is bound (other than non-exclusive licenses any Contract with an Affiliate, any Verizon Affiliate Contract and any Contract entered into after May 21, 2004 in compliance with Section 5.1) that is:
(1) an agreement limiting or restraining the freedom of the Surviving Corporation or the Subsidiaries following the Closing to compete in any respect with respect to the Business with any Person (including Seller);
(2) an agreement under which the Company, the Subsidiaries or the Contributing Companies (to the extent relating to the use or operation of the Verizon AssetCo Assets) (i) created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness, (ii) granted an Encumbrance on its assets, whether tangible or intangible, to secure such Indebtedness or (iii) extended credit or advanced funds to any Person (other than to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole);
(xi3) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) an agreement for the sale of Third Party Rights granted to any asset of the Company or the Subsidiaries or to grant any Subsidiary preferential rights to purchase any asset of the Company (A) on an exclusive basisor the Subsidiaries, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in each case in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole250,000;
(xii4) that is a Company an agreement for the lease of any Owned Real Property Lease or sublease of any property which is the subject of a Real Property Lease, in each case by the Company or the Subsidiaries or any Contributing Company (to the extent relating to the use or operation of the Verizon AssetCo Assets) to any other Person;
(5) (i) an agreement with remaining respect to the provision of 911 services or E911 services and (ii) an agreement for interconnection or provision of other telecommunications services or network services, in the case of both clauses (i) and (ii), other than pursuant to publicly filed tariffs;
(6) an agreement for the purchase or sale of any business, corporation, partnership, joint venture, association or other business organization or any division, operating unit or product line thereof;
(7) an agreement (or a group of purchase orders, work orders and other similar arrangements with a particular Person with respect to a particular product or service), other than as set forth above and other than any Contract in respect of Third Party Intellectual Property, any Plan, Labor Contract or Employment Agreement, with respect to which either (i) the aggregate amount to be received by the Company, the Subsidiaries or any of the Contributing Companies (to the extent primarily relating to the use or operation of the Verizon AssetCo Assets) thereunder with respect to calendar year 2004 is expected to exceed $250,000 based on payments which have been made under such agreement in calendar year 2003 (including individual case basis agreements) or (ii) the aggregate amount to be paid by the Company, the Subsidiaries or any of the Contributing Companies (to the extent primarily relating to the use or operation of the Verizon AssetCo Assets) thereunder with respect to calendar year 2004 is expected to exceed $1,000,000 based on payments which have been made under such agreement in calendar year 2003 and such agreement is not cancelable on 60 days’ notice;
(8) an agreement which creates a partnership or joint venture or similar arrangement with respect to a business venture;
(9) an agreement of indemnification or similar commitment with respect to the obligations or liabilities of any other Person in an aggregate amount in excess of $1,000,000500,000;
(xiii10) an agreement with any of the entities listed on Section 3.22(ii) of the Seller Disclosure Schedule (other than any agreement that involves a material joint venture, profit sharing, partnership will be terminated or similar agreement from which the Company or any of its and the Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries will be released pursuant to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionsSection 5.9(e);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries); or
(xvi11) an agreement entered into other than in the ordinary course of business concerning confidentiality and nondisclosure, whether the Company, a Subsidiary or any Contributing Company (to the extent relating to the use or operation of the Verizon AssetCo Assets) is with an affiliate the beneficiary or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, obligated party thereunder (other than any Contract solely among such agreement entered into with any Person regarding the Company and its wholly-owned Subsidiariespotential sale of the Business since January 1, 2003).
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a3.5(b) of the Company Seller Disclosure Schedule, is referred each Contract required to herein as be set forth on Section 3.5(a) of the Seller Disclosure Schedule (each, a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms”), all as of May 21, 2004 and as of the Closing Date (other than as permitted under Section 5.1(l) and other than any Material Contracts are Contract that may expire between May 21, 2004 and the Closing) (Ai) is valid and in full force and effect and is a valid and legally binding on the Company or the applicable Subsidiary obligation of the Company, a Subsidiary or the applicable Contributing Company, as the case may beapplicable, and, enforceable against each such party in accordance with its terms and (ii) to the Knowledge of Seller, is a valid and legally binding obligation of the Company, each other party thereto, and (B) enforceable against each such party in full force and effectaccordance with its terms, in each case except (i) as to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and or other similar Applicable Law Laws affecting creditors’ rights generally and by general principles of equity and (iiregardless of whether enforceability is considered in a proceeding in equity or at law). Except as set forth in Section 3.5(b) as would notof the Seller Disclosure Schedule, individually or in neither the aggregateCompany, reasonably be expected to have a Company Material Adverse Effect. Neither any of the Company Contributing Companies nor any Subsidiary of the Company hasSubsidiaries is party to a Material Contract where such party is, and, and to the Knowledge of Seller, no other party thereto is, in default in the Companyperformance, none of any material obligation, covenant or condition contained in the other parties thereto have, violated any provision of, or committed or failed to perform any act underMaterial Contracts, and no event or condition exists, has occurred which (with or without notice, the giving of notice or lapse of time time, or both) , would constitute a breach default by the Company, any of the Contributing Companies or default underany of the Subsidiaries of a material obligation thereunder. Except as disclosed in Section 3.5(b) of the Seller Disclosure Schedule, none of Seller, the provisions Company, any of the Contributing Companies or any of the Subsidiaries have received any written notice of intention of any party to terminate any Material Contract. Complete and correct copies of all Material Contracts, except in each case for those violationstogether with all modifications and amendments thereto to May 21, acts (2004, have been made available to Buyer or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectrepresentatives.
Appears in 1 contract
Sources: Agreement of Merger (Hawaiian Telcom Communications, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.2(t) of the Company SEC Documents, (ii) for this Agreement Disclosure Letter contains a list of each of the following written and a description of each of the other agreements entered into following oral Contracts in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, effect as of the date hereof, neither hereof to which the Company nor any Subsidiary of the Company Corporation is a party to or is bound by (the "Material Contracts"):
a) any Contract:
Contract (iother than the Employee Plans, the insurance policies and the Lease listed on Sections 3.2(k), 3.2(s) and 3.2(q), respectively, of the Disclosure Letter) that the Corporation reasonably anticipates will, in accordance with its terms, involve aggregate payments by the Corporation of more than $100,000 within the twelve (12) month period following the date hereof and that is a “material contract” not cancelable by the Corporation without liability on ninety (as such term is defined 90) or less days’ notice to the other party thereto, other than Contracts for the purchase of inventory or supplies in Item 601(b)(10) of Regulation S-K of the Exchange Act)Ordinary Course;
(iib) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices entered into in the ordinary course of businessOrdinary Course, and other similar Contracts any Contract that are ancillary to Contracts pursuant to which revenue is paid or payable the Corporation reasonably anticipates will, in accordance with its terms, involve aggregate payments to the Company Corporation of more than $100,000 within the twelve (12) month period following the date hereof and that is not cancelable by the other party thereto without liability on ninety (90) or its Subsidiaries)less days’ notice to the Corporation;
c) any Contract for the lease of movable (iiipersonal) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors property by the Company during such time period) (excluding any non-disclosure agreementsCorporation, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary anticipated to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future involve annual payments are required in excess of $5,000,000100,000 by the Corporation and not cancelable without liability on ninety (90) or less days’ notice to the lessor;
(vid) relating any Contract that limits or purports to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect limit the ability of the Company or any Subsidiary of the Company Corporation to compete or engage in any line of business or to compete with any Person or in any geographic area, other than area or during any customary employee non-solicitation or no-hire clauses entered into in the ordinary course period of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholetime;
(viiie) relating any material license, sublicense and other agreement or permission related to Intellectual Property under which the Corporation is a licensor or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)licensee;
(ixf) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to Contract under which the Company Corporation has directly or any Subsidiary received licensing revenues for the fiscal year ended January 31indirectly guaranteed indebtedness, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (liabilities or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,00050,000 of any Person;
(xiiig) that involves a material joint venture, profit sharing, partnership or similar agreement from any Contract under which the Company Corporation has directly or indirectly made any advance, loan, extension of its Subsidiaries recognized revenues credit or capital contribution to, or other investment in, any Person in excess of $1,000,000 during the fiscal year ended January 31, 202450,000;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xvh) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments Contract relating to the sale or purchase by the Corporation of any equity securities business operations of the Company any Person for a price in excess of $100,000; and
i) any Contracts regarding any partnership or any joint venture agreement which could reasonably be anticipated to involve assets or liabilities in excess of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act$100,000, other than any Contract solely among this Agreement and the Company and its wholly-owned Subsidiariesother Transaction Documents.
(bii) Each Contract As of the type described above in Section 4.15(a)date hereof, whether or not except as set forth in Section 4.15(a3.2(t) of the Company Disclosure ScheduleLetter, each Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, Corporation and, to the Knowledge knowledge of Vendors, on the Company, each other party parties thereto, and (B) is in full force and effect. The Corporation is not in material breach of, except (i) as may be limited by bankruptcyor material default under, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company any Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, Contract and, to the Knowledge knowledge of the CompanyVendors, none of the no other parties thereto have, violated party to any provision of, Material Contract is in material breach thereof or committed or failed to perform any act under, material default thereunder and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty other party to any Material Contract has (Agiven notice of its intention to terminate or substantially amend the Material Contract to which it is a party. Except as set forth in Section 3.2(t) canceled or otherwise terminatedof the Disclosure Letter, or threatened in writing copies of all written Material Contracts have been provided to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectPurchaser.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.13 of the Company SEC DocumentsDisclosure Schedule sets forth a list of all of the following agreements, (ii) for this Agreement contracts and commitments, written or oral, to which the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, or any of its subsidiaries is a party or by which any of them or any of their respective properties is bound as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
this Agreement: (i) that is a “mortgages, indentures, security agreements and other material contract” (as such term is defined in Item 601(b)(10) agreements and instruments relating to the borrowing of Regulation S-K money by or extension of the Exchange Act);
(ii) that is with the ten (10) largest customers of credit to the Company or any of its subsidiaries (other than accounts payable, accrued expenses, customer advances and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into similar items in the ordinary course of business, and other similar Contracts business that are ancillary to Contracts pursuant to which revenue is paid might be deemed the extension of credit) or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 guarantee by the Company or any of its Subsidiaries outside subsidiaries of the ordinary course indebtedness of business pursuant to which any person where the amount of such borrowed money, credit extension or indebtedness exceeds $25,000 individually; (ii) employment agreements, consulting agreements and commitments with any officer, employee or member of the Company's or any of its subsidiaries' Board of Directors not cancelable by the Company or one of its Subsidiaries have material continuing obligations;
subsidiaries, as the case may be, on not more than 90 days' notice and without liability or financial obligation or which involve payments in excess of $25,000; (viiiii) containing (A) a covenant agreements, orders or other provision limiting in any material respect commitments not cancelable by the ability Company or one of its subsidiaries, as the case may be, on not more than 90 days' notice and without liability or financial obligation for the purchase by the Company or any Subsidiary one of its subsidiaries of supplies or finished products exceeding $50,000 per year; (iv) agreements or commitments for capital expenditures involving payments in excess of $25,000 for any single item or $100,000 in the Company aggregate; (v) agreements that restrict the Company's or any of its subsidiaries' ability to compete or engage in any business, any line of business or to compete with any Person in any geographic arearegion or would so limit the Company, other than any customary employee non-solicitation of its subsidiaries, or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company Surviving Corporation or any of its Subsidiaries subsidiaries after the Effective Time; (vi) except as contemplated in Section 2.9 with respect to sellCompany Options set forth in Section 3.2(b) in the Company Disclosure Schedule, transferagreements or plans, pledge including any stock option plan, stock appreciation right or otherwise dispose of assetsstock purchase plan, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation any of the Company benefits of which will be accelerated or the value of which will be calculated by the occurrence of any of the transactions contemplated by this Agreement, the Transaction Option Agreement or the Stockholders' Agreements; (vii) agreements, contracts and its Subsidiaries, commitments other than those described in each case, that is material to the Company foregoing clauses (i) through (vi) which in any case involve payments or receipts of more than $100,000 per year and its Subsidiaries, taken as a whole;
which are not cancelable on not more than 90 days' notice and without liability or financial obligation; (viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) agreements pursuant to which the Company or any Subsidiary received licensing revenues of its subsidiaries manufactures products for the fiscal year ended January 31, 2024 in excess of $1,000,000, sale by third parties (i.e. OEM or private labeling agreements); (ix) indemnification agreements or subrogation agreements other than non-exclusive those contemplated in the Company Charter Documents, licenses granted to customers entered into or warranties given in the ordinary course of business, and/or Agreement and Plan of Merger -- 29 business and similar ordinary course of business undertakings; (Cx) that is otherwise material to the Company agreements with U.S. or foreign distributors; and its Subsidiaries taken as a whole;
(xi) that is a license (agreements, contracts and commitments which are currently effective and which have been, or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary as of the Company (A) on an exclusive basisdate of this Agreement will be, (B) on a non-exclusive basis, if pursuant required to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which be filed by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during subsidiaries with the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require SEC pursuant to the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to dispositionExchange Act and the rules and regulations thereunder (the items in (i) through (xi) above being, voting or dividends with respect to any equity securities of collectively, the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries"Material Contracts").
(b) The Company has heretofore furnished to Parent a complete and correct copy of each Material Contract (unless any such Material Contract has not been reduced to writing, in which case the Company has provided a complete and correct written description thereof). Each such Material Contract of the type described above identified in Section 4.15(a), whether or not set forth in Section 4.15(a) 3.13 of the Company Disclosure Schedule, Schedule is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on obligation of the Company or the applicable Subsidiary one of the Companyits subsidiaries, as the case may be, andand is in full force and effect without amendment, except where not being a valid and binding obligation or in full force and effect without amendment would not have a Material Adverse Effect on the Company. The Company or one of its subsidiaries, as the case may be, has performed, and to the Knowledge Company's and each of the Companyits subsidiaries' knowledge, each other party theretoto any such Material Contract has performed, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 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 any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default underall material respects, the provisions of any obligations required to be performed by it under the Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanyContracts, neither the Company nor any Subsidiary of its subsidiaries is, and to the Company's and each of its subsidiaries' knowledge, no other party to any such Material Contract is (with or without lapse of time or the giving of notice, or both), in material breach or default thereunder, and to the Company's and each of its subsidiaries' knowledge no event has occurred which, after notice or the passage of time or both, would constitute a material default under any such Material Contract or impair the Company's or any of its subsidiaries' material rights under any Material Contract, or give to any person rights of termination, amendment, acceleration or cancellation of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 1 contract
Sources: Merger Agreement (Autologic Information International Inc)
Material Contracts. (a) Except (ias set forth on Section 3.16(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereof, neither the Company nor any Subsidiary none of the Company or any of its Subsidiaries is a party to or is bound by any Contract:(other than Company Benefit Plans):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10A) of Regulation S-K of the Exchange Act);
Contract (iix) that is with the ten governing indebtedness for borrowed money (10other than any customary credit card line (or similar cash management credit line) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into used in the ordinary course of business) or (y) relating to mortgaging, and pledging or otherwise placing a Lien on any material portion of their assets, in each case, in respect of amounts exceeding, in the aggregate $5,000,000, or (B) Contract under which it has advanced or loaned any other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to Person (other than the Company or any of its Subsidiaries)) amounts exceeding, in the aggregate, $5,000,000;
(ii) guaranty of any financial obligation made on behalf of any Person other than the Company or any of its Subsidiaries or other guaranty in amounts exceeding, in the aggregate, $1,000,000;
(iii) that is settlement, conciliation or similar agreement with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Governmental Entity or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost the Company or any of goods and services is paid its Subsidiaries will be required, after the date of this Agreement, to satisfy any material monetary or payable by the Company)non-monetary obligations;
(iv) that lease or agreement under which the Company or any of its Subsidiaries is a Government Contractlessee or lessor of, or holds or operates any material personal property owned by any other party, or permits any Third Party to hold or operate any material personal property owned or controlled by the Company or any of its Subsidiaries, in each case for which the annual rental exceeds $3,000,000;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
agreement (viA) relating to the disposition any pending or completed material business merger, acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 divestiture by the Company or any of its Subsidiaries outside of (x) within the ordinary course of business last three (3) years or (y) pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge has remaining material obligations or otherwise dispose of assets, rights or properties liabilities or (DB) a minimum purchasegiving any person the right to acquire any material Equity Interests, minimum volumestock, “earnout” assets or other contingent, deferred or fixed payment obligation businesses of the Company and or any of its SubsidiariesSubsidiaries after the date hereof;
(vi) Contract concerning (A) the formation, creation, operation, management or control of any joint venture, partnership or similar agreement or other similar arrangement with a Third Party or (B) the ownership of any Equity Interest in any entity or business other than the Subsidiaries of the Company, in each case, case that is material to the business of the Company and its Subsidiaries, taken as a whole;
(viiivii) relating Contract pursuant to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of which (A) the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries are licensed or otherwise permitted by a Third Party to use any Intellectual Property material to the business of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
Subsidiaries, taken as a whole (ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted of “shrink-wrap,” “click-wrap” and “off-the-shelf” software, and non-exclusive licenses of other software that is generally commercially available) or (B) any Third Party is licensed or otherwise permitted to customers use any material Company Intellectual Property, in the ordinary course case of businesseach of clauses (A) and (B), and/or (x) requiring annual aggregate payments in excess of $5,000,000 and (y) excluding Incidental Licenses;
(viii) Contract that (A) expressly limits or prohibits the Company or any of its Subsidiaries from competing or freely engaging in business anywhere in the world, (B) purports to restrict the ability of Parent or its Subsidiaries (including the Surviving Corporation and its Subsidiaries) following the Effective Time to compete in any line of business or (C) contains any exclusivity or similar covenants that is otherwise would restrict future business activity of Parent or its Subsidiaries (including the Surviving Corporation and its Subsidiaries) following the Effective Time;
(ix) with respect to Company Intellectual Property material to the business of the Company and its Subsidiaries Subsidiaries, taken as a whole, any (A) Contract granting any exclusive rights to any third party with respect to such Intellectual Property, or (B) Contract providing for the assignment or development of such Intellectual Property to or on behalf of the Company, other than Incidental Licenses;
(x) Contract with any Governmental Entity where (A) the Governmental Entity is the customer and (B) such Contract involves annual payments in excess of $3,000,000;
(xi) Contract that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to between the Company or any Subsidiary of its Subsidiaries, on the one hand, and any director or officer of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or its Subsidiaries or any Subsidiary made payments during person beneficially owning 5% or more of the fiscal year ended January 31outstanding Shares, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to on the Company and its Subsidiaries taken as a wholeother hand;
(xii) any other Contract that is a requires payments to or by the Company Real Property Lease with remaining obligations or its Subsidiaries in excess of $1,000,000;5,000,000 per year; or
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from any other Contract to which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) is a party that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under filed by the Company as a “material contract” pursuant to Item 404 601(b)(10) of Regulation S-K promulgated under of the Exchange Securities Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract The Company has delivered or made available to Parent true, correct and complete copies of the type described above in Section 4.15(a), whether all written Contracts or not other agreements that are required to be set forth in on Section 4.15(a3.16(a) of the Company Disclosure ScheduleSchedule (collectively, is referred to herein as a the “Company Material ContractContracts”), together with all material amendments, waivers or other changes thereto.”
(c) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither be material to the Company nor any Subsidiary and its Subsidiaries, taken as a whole, (i) each of the Company hasand its Subsidiaries have performed in all material respects all material obligations required to be performed by it and is not in material default under, in material breach of, nor in receipt of any written claim of material default or material breach under, any Company Material Contract, (ii) no event has occurred which, with the passage of time or the giving of notice or both, would result in a material default or material breach by the Company or any of its Subsidiaries under any Company Material Contract and (iii) as of the date hereof, to the Knowledge of the Company, there is no material breach or threatened material breach by the other parties to any Company Material Contract. Except as would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole, and except for those that have terminated or expired in accordance with their terms, all of the Company Material Contracts are valid and in full force and effect and constitute legal, valid and binding obligations of the Company or its Subsidiaries party thereto, and are enforceable against the Company or its Subsidiaries party thereto in accordance with their respective terms (except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity), and, to the Knowledge of the Company, none constitute legal, valid and binding obligations of the other party or parties thereto havethereto, violated any provision ofenforceable against such party or parties in accordance with their respective terms (except as enforceability may be limited by applicable bankruptcy, or committed or failed to perform any act underinsolvency, fraudulent conveyance, reorganization, moratorium and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) other similar Laws affecting creditors’ rights generally and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect andsubject, as of February 1, 2021to enforceability, to the Knowledge general principles of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectequity).
Appears in 1 contract
Sources: Merger Agreement (Consolidated Communications Holdings, Inc.)
Material Contracts. (a) Except Schedule 3.12 lists all written or oral agreements, contracts and commitments (i) as filed as exhibits to the Company SEC Documentsor groups of related agreements, (ii) for this Agreement contracts and the other agreements entered into in connection commitments with the transactions contemplated hereby and same or related parties) (iii"Contracts") for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of to which the Company is a party to or is by which its assets are bound by any Contractcomprising the following:
(i) that is Contracts (other than purchase orders) which have a “material contract” (as such term is defined of one year or more or involve commitments in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$250,000;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders (or statements group of work or invoices entered into related purchase orders) to buy inventory for amounts in the ordinary course excess of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$650,000;
(iii) that is with the ten (10) largest vendors Contracts to which any Affiliate of the Company and its Subsidiaries during or, to the fiscal year ended January 31Company's Knowledge, 2024 (as determined based on cost of goods and services paid to such vendors by any Seller, officer or director of the Company during or any entity in which such time periodperson holds an interest (other than a de minimis interest) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)a party;
(iv) that Contracts pursuant to which the Company is entitled or obligated to acquire or sell any assets from or to a Government Contractthird party for a purchase price in excess of $250,000 (other than Contracts between the Company and its independent contractors on a form consistent in all material respects with the forms of agreement included in Schedule 3.25);
(v) evidencing a capital expenditure for Contracts which future payments are required in excess of $5,000,000collective bargaining agreements, union or labor agreements;
(vi) Contracts creating any Encumbrance, other than Permitted Encumbrances, and Contracts which evidence, secure or otherwise relate to or create any Encumbrance relating to any Indebtedness for which the disposition Company has or acquisition of could have any business, equity, or all or substantially all of the assets of any Person for aggregate consideration liability in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations250,000;
(vii) containing (A) a covenant or other provision limiting in any material respect Contracts which limit the ability of the Company to engage in any business or conduct its business in any Subsidiary of geographic or product market or to buy or sell any goods or services from or to any Person (other than restrictions contained in purchase orders which limit sales by the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholedirect selling channel);
(viii) relating Contracts to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of which the Company United States government or any Subsidiary department, agency or instrumentality thereof or any state or local governmental agency or authority is a party involving amounts in excess of $100,000;
(ix) Contracts which relate to the purchase, redemption, transfer or voting of Company Equity Securities;
(x) Contracts which are employment agreements with any employee of the Company;
(xi) Contracts which provide for a joint venture, partnership or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans similar arrangement between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;Person; and
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar other Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company the loss of which could reasonably be expected to have, directly or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notindirectly, individually or in the aggregate, reasonably be expected to have a Company Material Adverse EffectEffect (without giving effect to clause (y) of the definition thereof). Neither True and complete copies of all Contracts required to be listed on Schedule 3.12 have been provided to the Company nor any Subsidiary Buyer prior to the date hereof.
(b) Except as set forth in Schedule 3.12, (x) each Contract of the Company hasrequired to be disclosed in Schedule 3.12 is a valid and binding obligation, andenforceable in accordance with its terms in all material respects, (y) the Company has performed all the material obligations required to be performed by it in connection with the Contracts required to be disclosed in Schedule 3.12, has not given notice of the cancellation thereof, is not in material breach thereof and is not in receipt of any written claim of default under any such Contract and (z) to the Knowledge of the Company, none Company as of the date hereof, no such Contract has been breached in any material respect or cancelled by any other parties party thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has not received any written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectdefault by it thereunder.
Appears in 1 contract
Sources: Stock Purchase Agreement (Readers Digest Association Inc)
Material Contracts. (a) Except (iSchedule 3.13(a) as filed as exhibits sets forth a true, correct and complete list of all contracts, commitments, licenses, agreements, obligations or arrangements, whether oral or written, formal or informal, to the which any Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company Party is a party (or intends to become a party) or to which any of its assets or properties is bound by any Contractbound:
(i) that under which any Company Party is a “material contract” (as such term indemnified for or against any liability in excess of $50,000 or under which any Company Party is defined or could be obligated to indemnify any Person in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$50,000;
(ii) that under which any Company Party leases personal property from or to third parties under Capital Leases which involve rental payments of at least $25,000 per annum or under operating leases which involve rental payments of at least $50,000;
(iii) for the purchase or sale of products or other personal property or for the furnishing or receipt of services (A) which calls for performance over a period of more than one (1) year, (B) which involves payments of more than the $50,000 in the aggregate or (C) in which any Company Party has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from any Person;
(iv) (A) granting representation, marketing or distribution rights or (B) relating to Intellectual Property (including, without limitation, license, franchise or similar agreements);
(v) under which any Company Party has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness in excess of $50,000;
(vi) establishing or maintaining any partnership, joint venture or strategic alliance;
(vii) under which there is with or may be imposed a security interest or other Lien on any of its assets, whether tangible or intangible, whose net book value or fair market value is in excess of $50,000 (other than the ten (10) largest customers security interests or Liens granted in favor of the Company Purchaser and its Subsidiaries during the fiscal year ended January 31, 2024 Bank);
(as determined based on revenue received from such customers during such time periodviii) (excluding concerning any confidentiality or non-disclosure solicitation obligations entered into outside the ordinary course of business;
(ix) under which any Company Party is restricted from carrying on its business or any part thereof, or from competing in any line of business or with any Person;
(x) with officers, directors, employees, consultants or independent contractors of any Company Party;
(xi) resulting in the creation of any Lien (including any lease notifications) other than a Permitted Lien;
(xii) involving any Affiliates of any Company Party;
(xiii) under which the consequences of a default or termination could have a Material Adverse Effect;
(xiv) under which any Company Party will (A) receive aggregate payments from customers, (B) make aggregate payments to vendors or other suppliers or (C) make or receive aggregate payments to or from any other Persons, in each case in excess of $50,000 per annum;
(xv) which are franchise agreements, data processing including but not limited to all master, area director and unit agreements, purchase orders or statements of work or invoices ; and
(xvi) not entered into in the ordinary course of business, business and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);not otherwise disclosed on Schedule 3.13
(iiia) that is with the ten (10) largest vendors in response to any of the Company and its Subsidiaries during foregoing clauses. All of the fiscal year ended January 31contracts, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure commitments, licenses, agreements, data processing agreements, purchase orders obligations or statements of work or invoices entered into arrangements described in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
clauses (ivi) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
through (xvi) is above, together with an affiliate the Bank Credit Documents, the Tender Offer Documents, the real property leases, subleases, licenses and other interests described in Section 3.24, whether entered into prior to, on or other Person that would be required after the Closing Date, and the Agreements with Officers, are collectively referred to be disclosed under Item 404 of Regulation S-K promulgated under herein as the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries"Material Contracts".
(b) Each Except as disclosed on Schedule 3.13(b), each Material Contract existing as of the type described above in Section 4.15(a)date hereof is a legal, whether or not set forth in Section 4.15(a) valid and binding obligation of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts Parties that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, on the one hand, and (B) the other parties thereto, on the other hand, enforceable against each of them in full force and effectaccordance with its terms, except (i) as enforcement may be limited by bankruptcy, insolvency, moratorium and other reorganization, moratorium, fraudulent transfer or conveyance or similar Applicable Law affecting laws relating to or limiting creditors’ ' rights generally or by equitable principles relating to enforceability, and is in full force and effect. The parties to each Material Contract existing as of the date hereof are in substantial compliance with the terms thereof, and no default or event of default by general principles of equity and (ii) as would notany Company Party or, individually or in to the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary best knowledge of the Company hasParties, andany other party thereto exists thereunder.
(c) Except as set forth on Schedule 3.13(c), no Company Party is a party to the Knowledge of the Companyany contract, none of the other parties thereto havecommitment, violated license, agreement, obligation or arrangement that restricts it from carrying on its business or any provision ofpart thereof, or committed or failed to perform from competing in any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount line of business that or with any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectPerson.
Appears in 1 contract
Material Contracts. (a) Except (iSection 4.8(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule sets forth, as of the date hereofof this Agreement, neither the Company nor any Subsidiary a true, correct and complete list of all of the following Contracts to which any Group Company is a party or by or to which any of them or any of their respective Assets is bound by or subject, other than Intercompany Agreements that will be terminated, commuted, released or discharged or under which all existing and future Group Company obligations will be released pursuant to Section 6.3(b)) (excluding any Group Company Real Property Leases and Employee Benefit Plans, each such Contract:, a “Material Contract”):
(i) Contracts that is a “material contract” (as such term is defined 1) limit or restrict, or purport to limit or restrict, in Item 601(b)(10) of Regulation S-K any manner, the ability of the Exchange Act)Group Companies or any of their respective Affiliates from engaging in business in any geographic area, competing with any Person or soliciting customers or employees of any Person, (2) provide any third parties with “most favored nation” status, requiring any Group Company to offer or provide rates, terms or conditions to any customer or class of customer that are as good or better than such rate, terms or conditions as are offered or otherwise made available to any other customer or class of customer or (3) contain rights of first offer or rights of first refusal with respect to any assets, products or services provided or received by the Group Companies or any of their Affiliates under such contract or any of the terms thereof, in each case, other than any Contracts for the provision of business support services from third party service providers that do not relate to the Business;
(ii) Contracts, other than Customer Agreements, that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable relate to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost sale of goods and and/or the provision of services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company Group Companies expect to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues accrue revenue in excess of $1,000,000 during the fiscal year ended January ending December 31, 20242016 or in any twelve (12) month period following the date hereof;
(xiviii) that is a settlementContracts for the maintenance, conciliation modification, repair or similar Contract service of rolling stock and railcars owned or leased (xas lessee) with any Governmental Authority entered into since February 1, 2021, (y) which would require by or on behalf of the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Group Companies (other than ordinary course confidentiality requirements or restrictionsobligations of lessees to perform routine maintenance on railcars and rolling stock under Customer Agreements);
(xviv) any stockholders’ agreementContracts that contain a put, proxy, voting trust agreement or registration rights agreement call or similar agreements, arrangements or commitments relating right pursuant to which any equity securities of the Group Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would could be required to be disclosed under Item 404 purchase or sell, as applicable, any Capital Stock of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.Person or Assets;
(bv) Each Contract except for the capital expenditures provided for in the 2016 capital expenditure budget, a copy of the type described above in Section 4.15(a), whether or not which is set forth in on Section 4.15(a6.1(z)(vi) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired provide for planned or terminated in process capital expenditures or other purchases in excess of $500,000;
(vi) Contracts (1) evidencing Indebtedness (including obligations for the deferred purchase of property, but excluding immaterial capital leases) in excess of $5,000,000 (whether incurred, assumed, guaranteed or secured by their termsany asset) or (2) that provide for a guaranty for borrowed money, all letter of credit, comfort letter, indemnity, surety or other bond or similar contracts, in an amount in excess of $5,000,000 by any of the Group Companies in respect of any Person, excluding, in each case, any intercompany Indebtedness between two or more Group Companies;
(vii) Contracts that provide for the acquisition or disposition of any business or the capital stock of any Person (whether by merger, sale or purchase of stock, sale or purchase of asset, bulk reinsurance or otherwise) that have not been consummated or that have been consummated but contain representations, warranties, covenants, guarantees, indemnities or other obligations, or under which any Group Company may have any actual or contingent rights, benefits or liabilities that remain in effect;
(viii) any irrevocable power of attorney given by any Group Company to any Person;
(ix) Contracts for the employment of any officer, individual employee or other Person on a full-time or part-time basis, other than offer letters for employment at-will, or relating to loans to officers, directors or Affiliates;
(x) Contracts that contain any provisions or covenants relating to the indemnification or holding harmless by any Group Company of any Person or the advancement of any expenses to any Person by any Group Company, other than any Contract entered into in the Ordinary Course of Business and other than any such provisions or covenants given in connection with any Group Company Credit Facility;
(xi) any Contract (other than any Customer Agreement and any Contract evidencing Indebtedness), that calls for the receipt of, or payment by or on behalf of, any Group Company in excess of $1,000,000, or the delivery by any Group Company of goods or services with a fair market value in excess of $1,000,000 per annum, during the remaining term thereof, excluding any Contract that is terminable by the Company on thirty (30) days’ or less notice without penalty or further payment;
(xii) Contracts to purchase, or that provide for the option to purchase, any real estate by any Group Company;
(xiii) any Contract that relates to the formation, creation, operation, management or control of any joint venture, limited liability company or legal partnership or any investment (whether through the acquisition of Capital Stock, the making of a loan or advance or otherwise) in any other Person that is not a Group Company, or the joint development or joint ownership of Intellectual Property Rights or joint licensing of Intellectual Property Rights (other than pursuant to the terms of any immaterial nondisclosure agreements);
(xiv) Contracts pursuant to which any Group Company has any obligation to loan or contribute funds to, or make investments in, another Person, or which provides for the borrowing of money by, or the extension of credit to or any guarantee of the obligations of any other Person (other than trade payables arising in the Ordinary Course of Business);
(xv) Contracts that contain a material license or other grant of Intellectual Property Rights by a Group Company or to a Group Company (excluding licenses for readily commercially available software having an annual license fee of less than $250,000 in the aggregate for all such related licenses, or otherwise subject to a change of control condition and having a replacement cost of less than $250,000 in the aggregate for all such related licenses);
(xvi) except for performance bonds and Taxes, Contracts with any Governmental Entity involving payments by or to any Group Company and any other Contract not entered into in the Ordinary Course of Business or that is otherwise material to Sellers (with respect to the Business) or the Group Companies; and
(xvii) any Contract that is a commitment or obligation to enter into any of the foregoing.
(b) Each Material Contracts are Contract (Aother than an Intercompany Agreement that will be terminated, commuted, released or discharged or under which all existing and future Group Company obligations will be released pursuant to Section 6.3(b)) and each Confidentiality Agreement is in full force and effect and is legal, valid and binding on the Group Company or the applicable Subsidiary of the Company, as the case may be, that is a party thereto and, to the Knowledge of the Company, each other party counterparty thereto, and (B) enforceable in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a accordance with its terms against such Group Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of each counterparty thereto (subject to the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Enforceability Exceptions). No Group Company Material Adverse Effect and, as of February 1, 2021nor, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company other party to a Material Contract or a Confidentiality Agreement is in material default or material breach or has failed to perform in any material respect any obligations required to be performed by such party, as applicable, or has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to material default under any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other thana Confidentiality Agreement, in each case, as would other than Customer Contracts where the Customer is delinquent in the payment of any scheduled payment thereunder by less than sixty (60) days.
(c) Section 4.8(c) of the Company Disclosure Schedule sets forth a true, correct and complete list of all credit facilities pursuant to which any Group Company has incurred any Indebtedness (including any potential refinancing of such Indebtedness, the “Group Company Credit Facilities”).
(d) The Company is a party to each confidentiality agreement entered into in connection with the consideration of a possible sale of the Business (the “Confidentiality Agreements”). Sellers are not reasonably be expected party to have a Material Adverse Effectany of the Confidentiality Agreements.
Appears in 1 contract
Sources: Equity and Asset Purchase Agreement (Icahn Enterprises Holdings L.P.)