STOCK PURCHASE AGREEMENT by and among Sykes Enterprises, Incorporated (not as a Seller) SEI International Services S.a.r.l. (as Seller) Sykes Enterprises Incorporated Holdings, BV (as Seller) and Antonio Marcelo Cid Humberto Daniel Sahade as Buyers...
Exhibit 99.1
by and among
Xxxxx Enterprises, Incorporated (not as a Seller)
SEI International Services S.a.r.l. (as Seller)
Xxxxx Enterprises Incorporated Holdings, BV (as Seller)
SEI International Services S.a.r.l. (as Seller)
Xxxxx Enterprises Incorporated Holdings, BV (as Seller)
and
Xxxxxxx Xxxxxxx Cid
Xxxxxxxx Xxxxxx Sahade
as Buyers
Xxxxxxxx Xxxxxx Sahade
as Buyers
dated December 13th, 2010
THIS
STOCK PURCHASE AGREEMENT (the “Agreement”) is entered into as of this
13th day of December, 2010 by and among SEI International Services S.a.r.l., a
Luxembourg corporation (“SEI”), Xxxxx Enterprises Incorporated Holdings, BV, a Netherlands
corporation (“SEI-BV”, and together with SEI, “Sellers”), Xxxxx Enterprises,
Incorporated, a Florida corporation (“Sykes”), and Xxxxxxx Xxxxxxx Cid, DNI # 00.000.000
(“Cid”) and Xxxxxxxx Xxxxxx Sahade, DNI # 00.000.000 (“Sahade”, and together with
Cid, the “Buyer”, and together with Seller and Sykes, the “Parties” and each a
“Party” to this Agreement).
RECITALS
A.
Centro Interacción Multimedia S.A., an Argentine sociedad anónima (the “Company”)
is a contact center operator that provides call and contact center services through operational
sites located in the Territory (as defined below), as such business is currently conducted by the
Company (the “Business”);
X. Xxxxxxx own all of the issued and outstanding capital stock of the Company;
C. The Buyer desires to purchase from the Sellers and the Sellers desire to sell to the Buyer
the Shares (as this term is defined below), on the terms and subject to the conditions hereinafter
set forth.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual premises and covenants contained herein and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Parties hereto covenant and agree as follows:
ARTICLE I
DEFINITIONS
1.1 Definitions. In this Agreement, the following terms have the meanings specified or
referred to in this Section 1.1 and shall be equally applicable to both the singular and plural
forms. Any agreement referred to below shall mean such agreement as amended, supplemented and
modified from time to time to the extent permitted by the applicable provisions thereof and by this
Agreement.
“Affiliate” means, with respect to any Person, any other Person which directly or indirectly
controls, is controlled by or is under common control with such Person.
“Agreement” means this agreement with all its Exhibits and Schedules.
“Basic Warranty Date” means December 1, 2010.
“Business” has the meaning specified in the Recital A of the Agreement.
“Buyer’s Basket” has the meaning set forth in Section 6.6 (b).
“Buyer’s Indemnification Cap” has the meaning specified in Section 6.6. (b).
“Buyer” has the meaning specified in the first paragraph of this Agreement.
“Buyer Loss” has the meaning specified in Section 6.2.
“Cablevisión” has the meaning set forth in Section 2.4(a).
“Closing” means the sale and purchase of Shares to be consummated by the Buyer and Sellers by
virtue of this Agreement on the Closing Date, and on the terms and subject to the conditions set
forth in this Agreement.
“Closing Date” means December 16, 2010.
“Company” means Centro Interacción Multimedia S.A, a sociedad anónima duly organized and
validly existing under the laws of Argentina.
“Confidential Information” means all proprietary information and trade secrets of the Company
and the parties including, without limitation, (a) information comprising the identity, lists or
descriptions of any customers, partners, suppliers, referral sources or organizations; (b)
financial statements, cost reports or other financial information; (c) contract proposals or
bidding information; (d) business plans, marketing plans, training and operations methods and
manuals; (e) personnel records; (f) information concerning fee structures; (g) management systems,
policies or procedures, including related forms and manuals; (h) patent applications, know-how,
formulations, techniques, processes, formulae, methods, results, research programs, the existence,
scope and activities of any research, development, manufacturing, marketing, or other projects, (i)
any other intellectual property and (j) information and details relating to this Agreement and the
transactions contemplated hereby. Confidential Information shall not include any information that
the disclosing Party can show by competent evidence (i) is generally available to the public
through no fault of the said party, (ii) was or is independently developed by the said party apart
from use of any Confidential Information or (iii) which is subsequently disclosed by any third
party not in breach of a confidentiality obligation.
“Court Order” means any judgment, order, award, decree, stipulation, injunction or charge of
any foreign, federal, state, provincial, local or other court of competent jurisdiction on the
subject matter thereof or tribunal and any award in any arbitration proceeding.
“Departing Clients” has the meaning specified in Section 2.5(a) of this Agreement.
“Disagreement Notice” has the meaning specified in Section 6.5.
“Encumbrance” means any lien, security interest, mortgage, pledge, easement, conditional sale
or other title retention agreement, defect in title, restrictive covenant or other restrictions of
any kind.
“Equity Interests” means (a) any capital stock, share, partnership or membership interest,
unit of participation or other similar interest (however designated) in any Person and (b) any
irrevocable capital contribution, option, warrant, purchase right, conversion right, exchange
rights or other contractual obligation which would entitle any Person to acquire any such interest
in such Person or otherwise entitle any Person to share in the equity, profit, earnings, losses or
gains of such Person (including stock appreciation, phantom stock, profit participation or other
similar rights).
“Escrow Agent” has the meaning specified in Section 2.3(d) of this Agreement.
“Escrow Period” has the meaning specified in Section 2.3(d) of this Agreement.
“Excluded Clients Contracts” meaning specified in Section 2.5(a) of this Agreement.
“Fibertel Escrow Agreement” has the meaning specified in Section 2.3(d) of this Agreement.
“Fibertel Escrow Indemnification Fund” has the meaning specified in 2.3(d).
“Fibertel Loss” has the meaning set forth in Section 2.4(a).
“Fibertel Work Order” has the meaning set forth in Section 2.4(a).
“GAAP” means Generally Accepted Accounting Principles of Argentina, consistently applied.
“Governmental Authority” means any foreign, federal, provincial, municipal, local or other
governmental authority or regulatory body. Labor unions shall not be deemed a “Governmental
Authority” for purposes hereof.
“Indemnitee” has the meaning specified in Section 6.4(a).
“Indemnitor” has the meaning specified in Section 6.4(a).
“Inter-Company Loans” has meaning specified in Section 2.6(a) of this Agreement.
“Knowledge” shall mean actual knowledge and, with respect to each of the Sellers, unless
indicated otherwise, shall mean actual knowledge after reasonable inquiry of each such Seller and
actual knowledge of the directors and top-level officers of the Company, as applicable, with
responsibility for the applicable subject matter.
“Laws” means all foreign, federal, provincial, municipal and local statutes, laws, ordinances,
regulations, rules, resolutions, orders, determinations, writs, injunctions, common
law rulings, awards (including, without limitation, awards of any arbitrator), judgments and
decrees applicable to the specified Persons and to the businesses and assets thereof.
“Lender” has meaning specified in Section 2.6(a) of this Agreement.
“Liability” means, with respect to any Person, any liability or obligation of such Person
whether asserted or unasserted, whether determined, determinable or otherwise, whether accrued or
unaccrued, whether liquidated or unliquidated, whether due or to become due whether disclosed in a
schedule to this Agreement or not.
“Liability for the Departing Clients” has the meaning specified in Section 2.5(d) of this
Agreement.
“Loan Repayment” has the meaning set forth in Section 2.6(a)(i).
“Losses” shall refer to the “Buyer Losses” or to the “Sellers Losses” as defined in Section
6.2 and 6.3, as the case may be.
“Material Adverse Change” or “Material Adverse Effect” shall mean any material adverse effect
upon the condition (financial or otherwise), business, assets or results of operations of the
Business, taken as a whole, provided that any adverse effect resulting from changes resulting from
the transactions contemplated by the Agreement or the announcement or any disclosure thereof shall
not be considered in determining whether there has been a Material Adverse Effect.
“Notice of Claim” has the meaning specified in Section 6.4(b).
“Parties” has the meaning specified in the first paragraph of this Agreement.
“Party” has the meaning specified in the first paragraph of this Agreement.
“Permitted Exception” means (a) liens for Taxes and other governmental charges and assessments
which are not yet due and payable, (b) liens of landlords and liens of carriers, warehousemen,
mechanics and other like liens arising in the ordinary course of business for sums not yet due and
payable and (c) other Encumbrances on or imperfections in title to property which are not material
in amount or do not materially detract from the value or the existing use of the property affected
by such lien or imperfection.
“Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, limited liability company, trust, unincorporated organization, Governmental
Authority or other entity.
“Purchase Price” has the meaning specified in Section 2.2.
“Regulatory Reason” has the meaning specified in Section 2.4(a).
“SEI-Shares” has the meaning specified in the definition of Shares in this Section 1.1.
“Sellers” has the meaning set forth in the first paragraph of this Agreement.
“Sellers’ Basket” has the meaning specified in Section 6.6 (a).
“Sellers’ Indemnification Cap” has the meaning set forth in Section 6.6 (a).
“Sellers Loss” has the meaning set forth in Section 6.3.
“Shares” means, with respect to: (i) SEI International Services S.a.r.l., 1,955,000, Class A
and 1,950,800 Class B, nominative shares of common stock, par value AR$1 (one Argentine peso) each
entitled to one vote, which, collectively, represent 99,89% of the Company’s total issued and
outstanding capital and voting stock, held and owned as of the date hereof by SEI (the “SEI
Shares”), (ii) Xxxxx Enterprises Incorporated Holdings, BV, 4,200 Class B, nominative shares of
common stock, par value AR$1 (one Argentine peso) each entitled to one vote, which, collectively,
represent 0,11% of the Company’s total issued and outstanding capital and voting stock, held and
owned as of the date hereof by SEI-BV, which, together with the SEI Shares, represent 100% of the
Company’s total issued and outstanding capital and voting stock. In all cases, such shares include
and shall include any and all voting and economic rights relating thereto, and any rights to
declared or undeclared dividends, rights to reserves, capital contributions and the subscription
rights resulting thereof (including, without limitation, that certain irrevocable capital
contribution in the amount of Nine Million Five Hundred Thousand United States Dollars
(US$9,500,000.00) to be made by SEI on December 15, 2010 pursuant to Section 2.7(a) of this
Agreement), paid-in surplus, and any other Equity Interests in the Company.
“Tax Return” means any return, declaration, report, claim for refund or information return or
statement relating to taxes, including tax losses, deductions, credits and the like, including any
schedule or attachment thereto, and including any amendment thereof.
“Territory” means the Republic of Argentina.
“Third Party Claims” has the meaning specified in Section 6.4(c).
ARTICLE II
PURCHASE AND SALE OF SHARES; ESCROW;
EXCLUDED CUSTOMERS; CLOSING & POST-CLOSING COVENANTS
EXCLUDED CUSTOMERS; CLOSING & POST-CLOSING COVENANTS
2.1 Purchase and Sale of Shares. Upon the basis of the representations and warranties,
for the consideration, and subject to the terms and conditions set forth in this Agreement, on the
Closing Date, Sellers shall sell the Shares to the Buyer and the Buyer shall
purchase the Shares from Sellers, free and clear of any Encumbrances thereon. Each of the
Buyer will purchase 977,500 Class A and 977,500 Class B Shares.
2.2 Purchase Price. The total, aggregate purchase price for the Shares (the
“Purchase Price”) is One United States Dollar (U$S1.00), legal tender of the United States
of America. Payment of the Purchase Price shall be made by the Buyer to Sellers in United States
dollars, as indicated in Section 2.3(a) below.
2.3 Payment of Purchase Price; Escrow; other Disbursements by the Parties.
(a) The Buyer shall pay the Purchase Price to Sellers on the Closing Date in United States
dollars, in hard cash form.
(b) On the Closing Date, the Buyer shall deliver to the Company’s Argentine bank account with
Banco xx Xxxxxxx y Buenos Aires, by wire transfer of immediately available funds, an aggregate
amount of One Million Dollars (U$S1,000,000.00), in compliance with the Buyer’s covenant under
items (i) and (ii) of Section 2.6(a) and pursuant to the wiring details provided by Sellers to the
Buyer in writing.
(c) On December 15, 2010, Sellers shall deliver to the Company’s Argentine bank account with
Banco xx Xxxxxxx y Buenos Aires, by wire transfer of immediately available funds, an aggregate
amount of Nine Million Five Hundred Thousand United States Dollars (US$9,500,000.00), in compliance
with Sellers’s covenant under Section 2.7(a) to deliver such funds to Company at Closing for the
purposes thereof.
(d) Solely as security for the indemnification obligations of Sellers under Section 2.4 below
(and not as security for any other obligations set forth in this Agreement), within fifteen (15)
days following the Closing Date, Sellers shall deposit with an escrow agent to be mutually agreed
by the Parties (“Escrow Agent”), an aggregate of Five Hundred and Fifty Thousand United
States Dollars (US$550,000.00) in cash (the “Fibertel Escrow Indemnification Fund”) to be
held by Escrow Agent through December 31, 2011 (the “Escrow Period”) pursuant to the terms
of this Agreement and that certain Fibertel Escrow Agreement to be entered into among Sellers, the
Buyer, Sykes and Escrow Agent within the 15-day period above mentioned (the “Fibertel Escrow
Agreement”).
2.4 Fibertel Escrow Indemnification Fund.
(a) Subject to the terms conditions set forth in this Section 2.4, and subject further to the
limitation set forth in Section 6.2(b), Sellers hereby agree to indemnify the Buyer from and
against the loss suffered by Company as a result of or arising out of the loss by Company of the
entire Fibertel Business (as defined bellow in this Section 2.4) (the “Fibertel Loss”), to
the extent, and only to the extent, that the sole reason for the loss of the Fibertel Business by
Company results and derives from Cablevisión S.A.’s obligation to shut down its internet access
business as a result of its governmental license to carry out such internet access business being
cancelled or revoked by
the respective Governmental Authority (the “Regulatory Reason”). For purposes of this
Section 2.4, the Fibertel Business shall mean that business currently being conducted by Company
for Cablevisión S.A. (“Cablevision”) in the Territory pursuant to that certain Work Order
(Solicitud de Servicio), dated March 20, 2009, by and between Company and Cablevision (the
“Fibertel Work Order”). The Fibertel Escrow Indemnification Fund shall be applied,
administered and disposed of in accordance with the terms and subject to the conditions set forth
in this Section 2.4 and in the Fibertel Escrow Agreement.
(b) The Fibertel Loss is hereby mutually assessed and fixed in advance by the Parties in the
amount of Five Hundred Fifty Thousand United States Dollars (US$550,000) and the Buyer shall not
need to provide, and is hereby relieved from providing, any evidence whatsoever to prove the amount
and extent of the Fibertel Loss. The Escrow Indemnification Fund (and any income earned on the
funds held in escrow) shall be disbursed in its entirety by Escrow Agent to the Buyer within
fifteen (15) days as from the earlier of: (i) the date Cablevision has advised Company in writing
of its decision to terminate the Fibertel Work Order or discontinue the Fibertel Business with
Company, pursuant to the Regulatory Reason, or (ii) the date Cablevision has effectively commenced
a complete ramp down of the Fibertel Business based upon the Regulatory Reason.
(c) During the Escrow Period, the Fibertel Escrow Indemnification Fund shall be invested as
set forth on the Fibertel Escrow Agreement. The Escrow Agent’s fees and expenses accrued throughout
the term of the Fibertel Escrow Agreement shall be borne by Sellers.
(d) On the expiration of the Escrow Period and provided that no claim has been filed pursuant
to Sections 2.4, 6.2 and 6.4 of this Agreement and as provided for in the Fibertel Escrow
Indemnification Agreement, the Fibertel Escrow Indemnification Fund and any income earned on the
funds held in escrow, shall promptly be disbursed to Sellers pursuant to the Fibertel Escrow
Indemnification Agreement.
(e) The Buyer hereby acknowledge and agree that the Fibertel Escrow Indemnification Fund: (i)
secures only the obligations of Sellers under this Section 2.4 and that such fund shall not be
applied, set off against or available to satisfy any other obligations of Sellers hereunder, and
(ii) is the sole and exclusive remedy available to the Buyer to satisfy any loss or liability
suffered by Company or the Buyer as a result of or in connection with the loss by Company of the
Fibertel Business.
2.5 Certain Excluded Clients; Covenant to Cooperate and Provide Services.
(a) The Buyer hereby acknowledge and agree that: (i) the Company’s existing
contracts with the clients listed in Schedule 2.5(a) (collectively, the “Departing
Clients”) to which Company currently renders call center services are excluded from the
acquisition transaction of the Company by the Buyer contemplated hereunder (collectively, the
“Excluded Clients Contracts”), and (ii) such services being currently provided by Company
to the
Departing Clients under the Excluded Clients Contracts are to be transitioned to a Sykes service
center after Closing, as designated by Sykes in its sole discretion.
(b) Notwithstanding the foregoing, the Parties hereby acknowledge and agree, and the Buyer
hereby covenant and agree that, upon Closing the Buyer shall cause Company to (i) subject to Sykes’
right under the following item (ii) in this paragraph, continue providing call center services to
the Departing Clients fully in accordance with the terms and conditions set forth in the respective
Excluded Clients Contract attached hereto as Exhibit A, the Subcontractor Agreement and
this Agreement, and (ii) cease rendering such services to the Departing Clients pursuant to the
terms and conditions agreed upon in the Subcontractor Agreement, including, without limitation, the
migration plan to be mutually agreed upon by Sykes and Company thereunder.
(c) The Parties hereby acknowledge and agree that upon Closing: (i) Company shall act and
serve as Sykes’ or any of its subsidiaries’ (as indicated by Sykes exercising sole and absolute
discretion) subcontractor with respect to the provision of the services to the Departing Clients,
as more fully described in the Subcontractor Agreement, (ii) Sykes will control and retain all
client management relationship with the Departing Clients, and (iii) Company shall render the
services to the Departing Clients on a pass through cost basis, as more fully described in the
Subcontractor Agreement.
(d) The Parties hereby acknowledge and agree that: (i) Company shall be solely responsible for
and bear all the costs, expenses and liability arising out of, associated with, or resulting from
the transition of the services under the Excluded Clients Contracts to Sykes’ designated service
center, including, without limitation, the costs incurred by Company in connection with the
employee downsizing required as a result of the loss of business from the Departing Clients
(collectively, the “Liability for the Departing Clients”), and (ii) Sellers shall bear no
liability in connection with the Liability for the Departing Clients.
(e) Without limiting the foregoing, the Buyer hereby covenant and agree to cause Company to
cooperate fully with Sellers and Sykes to help Sellers and Sykes carry out and perfect the
transition of the services under the Excluded Clients Contracts to that Sykes’ entity and service
centers designated by Sykes in its sole and absolute discretion. In furtherance of the covenant in
the preceding sentence (but without limiting its general applicability and effect), the Buyer
specifically covenant and agree to execute and deliver such further instruments and documents as
Sykes reasonably may request.
2.6 Closing Covenants of the Buyer.
(a) At Closing, the Buyer shall:
(i) cause Company to repay the amount of One Million United States Dollars (U$S1,000,000.00)
(the “Loan Repayment”) to SEI (“Lender”), which payment shall be credited towards
the outstanding balance due by Company to Lender under those certain two
intercompany loan agreements by and between Company and Lender, dated February 20, 2007 and
July 16, 2007, respectively (collectively, the “Inter-Company Loans”);
(ii) provide and deliver the amount of One Million United States Dollars (U$S1,000,000.00) to
Company to enable Company to make the Loan Repayment to Lender; and
(iii) cause Company to execute and deliver to Sykes: (y) the two Assignment and Assumption and
Consent to Subcontract agreements with Yahoo! Inc. and Xxxxxxx Kodak Company, respectively, along
with the two Consent to Subcontract agreements with Verizon Corporate Services Group Inc. and
Telefónica de España, respectively, all such four documents being attached hereto as Exhibit
B; and (z) the Subcontractor Agreement attached hereto as Exhibit C.
2.7 Closing Covenants of Sellers.
(a) On December 15, 2010, SEI shall provide and deliver to the Company, in the form of
irrevocable capital contribution, the amount of Nine Million Five Hundred Thousand United States
Dollars (US$9,500,000) for coverage of certain contingent Liabilities of Company, as such amount
has been fully negotiated and mutually settled and agreed upon by the Parties.
(b) NOTWITHSTANDING THE FOREGOING AND ANYTHING IN THIS AGREEMENT TO THE CONTRARY, THE PARTIES
HEREBY ACKNOWLEDGE AND AGREE THAT EXCEPT ONLY FOR THAT LIABILITY (IF ANY) RESULTING FROM FRAUD BY
SYKES OR ANY OF THE SELLERS AND SUCH OTHER LIABILITY (IF ANY) FOR WHICH SELLERS HAVE EXPRESSLY
AGREED TO INDEMNIFY THE BUYER PURSUANT TO THE SELLERS’ INDEMNIFICATION OBLIGATIONS UNDER SECTIONS
2.4 AND 6.2 HEREUNDER, NEITHER SELLERS NOR SYKES SHALL BE OBLIGED TO INDEMNIFY THE BUYER OR COMPANY
FROM ANY OTHER LIABILITY (WHETHER ABSOLUTE, ACCRUED, CONTINGENT OR OTHERWISE) OF THE COMPANY,
INCLUDING, WITHOUT LIMITATION, THAT LIABILITY OF A NATURE REQUIRED BY GAAP TO BE REFLECTED ON A
CORPORATE BALANCE SHEET OR DISCLOSED IN THE NOTES THERETO, AND LIABILITY THAT IS BASED UPON OR THAT
RESULTS FROM THE OPERATION OF THE COMPANY OR THE BUSINESS ON, PRIOR TO, OR AFTER THE CLOSING.
2.8 Post-Closing Covenants of the Buyer and Sellers.
(a) In case at any time after the Closing any further action is legally necessary or
reasonably desirable (as determined by the Buyer, Sellers or Sykes) to carry out the purposes of
this Agreement, each of the Parties will take such further action (including the execution and
delivery of such further instruments and documents) as any other Party reasonably may request, all
at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to
indemnification therefor under Article VI below). The Buyer and Sellers acknowledge and agree that
from and after the Closing the Buyer will be entitled to possession of all documents, books,
records, agreements, and financial data of any sort relating to the Company.
(b) For a period of five (5) years from and after the Closing, the Parties will (a) preserve
the confidentiality of all Confidential Information, (b) refrain from using any of the Confidential
Information except in connection with this Agreement or otherwise for the intended benefit of the
Company, the Parties or their Affiliates, and (c) deliver promptly to the other Party or destroy,
at the written request and option of the other Party, all tangible embodiments (and all copies) of
the Confidential Information which are in their possession. In the event that any of the Parties is
requested or required (by oral question or written request for information or documents in the
legal proceeding, interrogatory, subpoena, civil investigative demand, or similar legal proceeding)
to disclose any Confidential Information, the said party will notify the other Party promptly of
the request or requirement.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
OF THE SELLERS
OF THE SELLERS
Each of Sykes and Sellers, severally and jointly, represents and warrants to the Buyer that:
3.1 Capitalization. The capital stock of the Company consists of 3,910,000 nominative
shares of common stock, par value AR$1 (one Argentine peso) and each entitled to one vote, all of
which are issued and outstanding. The Sellers own beneficial and legal title to all of the Shares,
free and clear of any Encumbrances. None of the Shares was issued or will be transferred under this
Agreement in violation of any preemptive or preferential rights of any Person. The Sellers own one
hundred percent (100%) of the issued and outstanding capital stock of the Company, in the
proportions and numbers of Shares set forth in Schedule 3.1.
3.2 No Liens on Shares. The Sellers own the Shares free and clear of any Encumbrances
other than the rights and obligations arising under this Agreement. None of the Shares of the
Company is subject to any outstanding option, warrant, call, preemptive right or similar right of
any other Person to acquire the same, and none of the Shares is subject to any restriction on
transfer thereof. The Sellers have full power and authority to convey good and marketable title to
the Shares free and clear of any Encumbrances.
3.3 Other Rights to Acquire Capital Stock. There are no authorized or outstanding
warrants, options, or rights of any kind to acquire from the Company any equity or debt securities
of the Company, or securities convertible into or exchangeable for equity or debt securities of the
Company, and there are no shares of capital stock of the Company reserved for issuance for any
purpose nor any contracts, commitments, understandings or arrangements which require the Company to
issue, sell or deliver any additional shares of its capital stock.
3.4 Due Organization. The Company is a sociedad anónima duly organized, validly
existing, and is, in all material respects, in good standing under the laws of the Republic of
Argentina and has full corporate power and authority to carry on the Business as now conducted by
the Company. Except as disclosed on Schedule 3.4, the Company maintains all of
its corporate records in proper form (except for immaterial departures) in accordance with the
requirements of the by-laws (Estatutos) and applicable Laws.
3.5 Due Authorization. Each of the Sellers has full power and authority to execute,
deliver and perform this Agreement and to carry out the transactions contemplated hereby. The
execution, delivery, and performance of this Agreement and the transactions contemplated hereby
have been duly and validly authorized by all necessary action of the Sellers. This Agreement has
been duly and validly executed and delivered by the Sellers and constitutes the valid and binding
obligations of Sellers, enforceable in accordance with its terms, except to the extent that
enforceability may be limited by laws affecting creditors’ rights and debtors’ obligations
generally. The execution, delivery, and performance of this Agreement by the Sellers, do not (a)
violate or conflict with, or permit the cancellation of, or constitute a default under, any
material agreement (except to and up to the extent evidenced therein) to which the Company is or
Sellers are a party, or by which any of them or any of their respective property is bound, (b)
permit the acceleration of the maturity of any indebtedness of, or indebtedness secured by the
property of, the Company, or (c) violate or conflict with any provision of the by-laws (Estatutos)
of the Company.
3.6 Subsidiaries. The Company has no subsidiaries or owns any Equity Interest of any
other Person.
3.7 Certain Actions. Since Basic Warranty Date, the Company has not: (a) discharged or
satisfied any Encumbrance or paid any obligation or Liability, absolute or contingent, other than
current Liabilities incurred and paid in the ordinary course of the Business or incurred any
Liability other than Liabilities incurred in the ordinary course of the Business; (b) paid or
declared any dividends or distributions, or purchased, redeemed, acquired, or retired any stock
from any shareholder; (c) made or agreed to make any loans or advances or guaranteed or agreed to
guarantee any loans or advances to any Person; (d) suffered or permitted any Encumbrance other than
Permitted Exceptions to arise or be granted or created against or upon any of its material assets,
real or personal, tangible or intangible; (e) canceled, waived, or released or agreed to cancel,
waive, or release any of its receivables, rights, or claims against third parties; (f) sold,
assigned, pledged, mortgaged, or otherwise transferred, or suffered any material damage,
destruction, or loss (not covered by insurance) to, any assets; (g) amended its by-laws
(Estatutos); (h) paid or made a commitment to pay any severance or termination payment to any
employee or consultant outside the ordinary course of business; (i) made any material change in its
method of management or operation or method of accounting; (j) made any capital expenditures,
including, without limitation, replacements of equipment in the ordinary course of the Business, or
entered into commitments therefor, except for capital expenditures or commitments therefor which do
not, in the aggregate, exceed US$50,000; (k) made any investment or commitment therefor in any
Person, except in the ordinary course of business, or merged or consolidated with any other Person
or acquired a material amount of assets of any other Person; (l) made any payment or contracted for
the payment of any bonus or other compensation or personal expenses, other than (i) wages and
salaries and business expenses paid in the ordinary course of the Business and (ii) wage and salary
adjustments made in the ordinary course of the Business; (m) made, amended, or entered into any
written
employment contract or created or made any material change in any bonus, stock option, pension,
retirement, profit sharing or other employee benefit plan or arrangement; (n) materially amended or
experienced a termination of any Contract, agreement, lease, franchise or license to which the
Company is a party or any material term thereof; (o) made a Tax election that would have a Material
Adverse Effect; or (p) entered into any other material transactions that would or could reasonably
be expected to have a Material Adverse Effect.
3.8 Financial Liabilities. By the Closing Date, the Company shall have satisfied and
repaid or cancelled in full all outstanding debts owed by Company to Sykes and Sellers (and their
respective affiliates) such as the so-called “Corporate Allocation Expenses”, and all outstanding
loans and financial leases of the Company with third parties, including, without limitation, the
Inter-Company Loans, and except for:
(i) that Loan Repayment (i.e. U$S1,000,000.00) under the Inter-Company Loans
payable by the Buyer to the Company in compliance with the Buyer’s covenant under
items (i) and (ii) of Section 2.6(a); and
(ii) that financial obligations of the Company under that certain automobile
financial lease with Banco Comafi Sociedad Anonima, which, the Buyer hereby
acknowledge and agree, shall remain the obligation of the Company after Closing, and
neither Sellers nor Sykes shall have any further liability with respect to such
lease.
3.9 Property. The Company does not presently own any real property.
3.10 Trademarks. The Company solely owns the trademark “Apex America”, which, at
Closing, shall be transferred as part of the Company to the Buyer as part of the transaction
contemplated herein.
3.11 Capital Contributions. All irrevocable capital contributions made to the Company
(i) are accurately reflected in the accounting books and records of the Company in accordance with
applicable Laws and generally accepted accounting principles, (ii) were effectively received by or
on behalf of the Company from the individuals or entities specified in any such books and records,
(iii) have been duly approved by all necessary corporate action and in accordance with all Laws
applicable thereto.
3.12 Employee Benefit Plans. The Company does not maintain or contribute to any
employee private pension or welfare benefit plan.
3.13 Guaranty of Third-Party Obligations. The Company has not guaranteed any
obligations of any other Person.
3.14 Taxes. Except as disclosed on Schedule 3.14, the Company has filed, or
has caused to be filed on its behalf, all material Tax Returns required to be filed by it. All such
Tax Returns (as amended) were true and complete in all material respects at the time of their
filing.
3.15 Accounts Receivable. All of the accounts, notes, and loans receivable that have
been recorded on the books of the Company are bona fide and represent amounts validly due for goods
sold or services rendered and, to the Knowledge of the Sellers, all such amounts (net of any
allowance for doubtful accounts) are due within One Hundred Eighty (180) days following the
Closing. To the Knowledge of Sellers (a) except for operational penalties in the normal course of
business, all of such accounts, notes, and loans receivable are free and clear of any
Encumbrances; (b) no claims of offset have been asserted in writing against any of such accounts,
notes, or loans receivable; and (c) none of the obligors of such accounts, notes, or loans
receivable has given written notice that such obligor will or may refuse to pay the full amount or
any portion thereof.
3.16 Brokers. Each Party shall bear and pay all costs and expenses, including but not
limited to financial advisory and legal fees, which it incurs, or which may be incurred on its
behalf in connection with the origin, negotiation, execution, delivery, or performance of this
Agreement or the transactions contemplated hereby.
3.17 Government Consents. No consent, approval or authorization of, or exemption by,
or filing with, any Governmental Authority is required to be obtained or made by neither Sykes nor
Sellers in connection with the execution, delivery and performance by Sykes and Sellers of this
Agreement, or the taking by Sykes and Sellers of any other action contemplated hereby, except where
the failure to obtain such consent, approval, authorization or exemption or the failure to file, as
applicable, would not materially hinder or impair the consummation of the transactions contemplated
hereby.
3.18 Accuracy of Representations and Warranties. The representations and warranties of
Sellers set forth in this Agreement shall be accurate in all material respects at and as of the
Closing Date with the same force and effect as though made on and as of the Closing Date, except
for any changes resulting from activities or transactions which may have taken place after the
Basic Warranty Date and which are permitted or contemplated by this Agreement or which have been
entered into in the ordinary course of business.
3.19 Disclaimer of Sellers. (A) EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 3, NONE
OF THE SELLERS AND SYKES, THEIR AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES, REPRESENTATIVES OR SHAREHOLDERS (OR AFFILIATES THEREOF) MAKE OR HAVE MADE ANY OTHER
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF ANY OF THE
BUSINESS, THE COMPANY OR THE ASSETS OF THE COMPANY, INCLUDING WITH RESPECT TO (I) THE OPERATION OF
THE BUSINESS AFTER THE CLOSING OR (II) THE PROBABLE SUCCESS OR PROFITABILITY OF THE BUSINESS AFTER
THE CLOSING; AND (B) OTHER THAN THE INDEMNIFICATION OBLIGATIONS OF SELLERS SET FORTH IN SECTION 6,
NONE OF THE SELLERS AND SYKES, THEIR AFFILIATES, OR ANY OF THEIR
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, REPRESENTATIVES OR SHAREHOLDERS (OR AFFILIATES
THEREOF) WILL HAVE OR BE SUBJECT TO ANY LIABILITY OR INDEMNIFICATION OBLIGATION TO THE BUYER OR TO
ANY OTHER PERSON RESULTING FROM THE DISTRIBUTION TO THE BUYER, THEIR RESPECTIVE AFFILIATES OR
REPRESENTATIVES OF, OR THE BUYER’S USE OF, ANY INFORMATION RELATING TO THE BUSINESS, AND ANY
INFORMATION, DOCUMENTS OR MATERIAL MADE AVAILABLE TO BUYER, WHETHER ORALLY OR IN WRITING, IN
CERTAIN “DATA ROOMS”, MANAGEMENT PRESENTATIONS, FUNCTIONAL “BREAK OUT” DISCUSSIONS, RESPONSES TO
QUESTIONS SUBMITTED ON BEHALF OF THE BUYER OR IN ANY OTHER FORM IN EXPECTATION OF THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT.
ARTICLE IV
BUYER’S REPRESENTATIONS AND WARRANTIES
The Buyer, jointly and severally, represent and warrant to Sellers as follows:
4.1 Due Authorization. The execution, delivery and performance of this Agreement have
been duly authorized by all necessary organizational action of the Buyer, and this Agreement has
been duly and validly executed and delivered by the Buyer and constitutes the valid and binding
obligation of the Buyer, enforceable in accordance with its terms. The execution, delivery, and
performance of this Agreement (as well as all other instruments, agreements, certificates or other
documents contemplated hereby) by the Buyer, does not (a) violate any Laws or Court Order of any
Governmental Authority applicable to the Buyer or its property, (b) violate or conflict with, or
permit the cancellation of, or constitute a default under any agreement to which the Buyer is a
party or by which it or its property is bound, (c) permit the acceleration of the maturity of any
indebtedness of, or any indebtedness secured by the property of the Buyer, or (d) violate or
conflict with any provision of the formation certificate or operating agreement of the Buyer.
4.2 Government Consents. No consent, approval or authorization of, or exemption by, or
filing with, any Governmental Authority is required to be obtained or made by the Buyer in
connection with the execution, delivery and performance by the Buyer of this Agreement, or the
taking by the Buyer of any other action contemplated hereby.
4.3 Litigation. There is no litigation pending, or, to the Buyer’s Knowledge,
threatened (i) against the Buyer or any of their Affiliates with respect to which there is a
reasonable likelihood of a determination which would have a material adverse effect on the ability
of the Buyer to perform its obligations under this Agreement or (ii) which seeks to enjoin or
obtain damages in respect of the consummation of the transactions contemplated hereby. Neither the
Buyer nor any of its Affiliates is subject to any outstanding orders, rulings, judgments or decrees
which would have a Material Adverse Effect on the ability of the Buyer to perform its obligations
under this Agreement.
4.4 Accuracy of Representations and Warranties. The representations and warranties of
the Buyer set forth in this Agreement shall be accurate in all material respects at and as of the
Closing Date with the same force and effect as though made on and as of the Closing Date.
ARTICLE V
CLOSING DELIVERIES
(a) The following documents shall be delivered at the Closing by Sellers and the Company to
the Buyer:
(i) Stock Certificates. Sellers shall deliver the stock certificates
representing the Shares accompanied by duly executed transfer notice letters pursuant to Section
215 of Law No. 19.550.
(ii) Corporate Books. The following corporate books of the Company: (a) Board and
Shareholders Meetings Books, (b) Share Registry, (c) Deposit of Shares to Shareholders’ Meetings.
(iii) Resignation Letters. Signed letters of resignation from all of the directors of
the Company effective on the Closing.
(iv) Board of Directors Meeting. The Board of Directors of the Company shall hold a
special meeting to, among other things, (i) take notice of the transfer of the Shares by Sellers to
the Buyer, (ii) accept and approve the resignation to their position as member of the Company’s
Board of Directors submitted by each member of the board, (iii) elect the Buyer’s nominee as the
new members of the Company’s Board of Directors.
(v) Shareholders Meeting. The current shareholders of the Company shall hold a special
meeting to, among other things: (i) accept and approve the resignation submitted by the members of
the Company’s Board of Directors, (ii) approve their performance as member of the Company’s Board
of Directors, (iii) appoint new active directors and alternate directors as indicated by the Buyer.
ARTICLE VI
INDEMNIFICATION
6.1 Survival of Representations and Warranties and Obligations.
(a) The representations and warranties (including the exceptions to any representations or
warranties) made by Sellers, Sykes, and the Buyer, and contained herein or in any
exhibit, schedule or certificate delivered under this Agreement shall survive the Closing until the
thirdyear anniversary of the Closing Date and shall be of no further force and effect after such
date.
(b) Notwithstanding the foregoing, if written notice of a claim for breach of a representation
or warranty has been given by the Party seeking indemnification on or prior to the expiration of
the 3-year period set forth above, then the relevant representation or warranty shall survive as to
such claim until the claim has been finally resolved.
(c) Notwithstanding the foregoing provisions, each of Sykes and the Sellers joint obligations
to indemnify Buyer pursuant to Section 6.2 below shall continue for the applicable statute of
limitations with respect to any claim involving fraud on the part of Sykes or any of the Sellers,
and any representation and warranty that is the subject of such claim shall survive for such
period.
6.2 Indemnification by Sellers.
(a) Subject to the limitation in time set forth in Section 6.1 above and the limitations set
forth below in Section 6.6, the Buyer and their successors and permitted assigns shall be
indemnified and held harmless by Sykes and Sellers, from any and all liabilities, losses, damages
(excluding consequential damages), claims, costs and expenses, interest, awards, judgments and
penalties (including, without limitation, reasonable legal costs and expenses) actually suffered or
incurred by the Buyer or the Company (hereinafter a “Buyer Loss”), actually arising out of
or resulting from:
(i) the breach of any representation or warranty by Sykes or Sellers contained in Section 3;
or
(ii) the breach of any covenant or agreement by Sykes or Sellers contained herein.
(b) Any claims by the Buyer for Sykes’ or Sellers’ indemnification obligations under Section
2.4 shall be made solely against the Fibertel Escrow Indemnification Fund and in accordance with
Sections 6.4 and 6.5 below and the other rules and procedures in the Fibertel Escrow Agreement, and
shall be limited in amount and recourse to such Fibertel Escrow Indemnification Fund.
(c) NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, THE PARTIES HEREBY ACKNOWLEDGE
AND AGREE THAT EXCEPT ONLY FOR THAT LIABILITY (IF ANY) RESULTING FROM FRAUD BY ANY OF THE SELLERS
AND SUCH OTHER LIABILITY (IF ANY) FOR WHICH SELLERS HAVE AGREED TO INDEMNIFY THE BUYER PURSUANT TO
THE SELLERS’ INDEMNIFICATION OBLIGATIONS UNDER SECTIONS 2.4 AND 6.2 HEREUNDER, ALL OTHER LIABILITY
(WHETHER ABSOLUTE, ACCRUED, CONTINGENT OR OTHERWISE) OF THE COMPANY, INCLUDING, WITHOUT LIMITATION,
LIABIILTY
OF A NATURE REQUIRED BY GAAP TO BE REFLECTED ON A CORPORATE BALANCE SHEET OR DISCLOSED IN THE
NOTES THERETO, AND LIABILITY THAT IS BASED UPON OR THAT RESULTS FROM THE OPERATION OF THE COMPANY
OR THE BUSINESS ON, PRIOR TO, OR AFTER THE CLOSING, IS HEREBY BEING TRANSFERRED ONTO AND ALLOCATED
TO, AND WILL REMAIN WITH, THE COMPANY AND, ULTIMATELY, THE BUYER, AFTER CLOSING. ACCORDINGLY,
EXCEPT ONLY FOR THAT LIABILITY (IF ANY) RESULTING FROM FRAUD BY ANY OF THE SELLERS AND SUCH OTHER
LIABILITY (IF ANY) FROM WHICH THE BUYER SHALL BE INDEMNIFIED BY SELLERS PURSUANT TO THE SELLERS’
INDEMNIFICATION OBLIGATIONS UNDER SECTIONS 2.4 AND 6.2 HEREUNDER, SELLERS AND SYKES SHALL HAVE NO
FURTHER LIABILITY TO COMPANY NOR TO THE BUYER FOR ANY LIABILITY OF COMPANY OR THE BUYER, EVEN IF
AND REGARDLESS OF WHETHER SUCH LIABILITY IS OF A NATURE REQUIRED BY GAAP TO BE REFLECTED ON A
CORPORATE BALANCE SHEET OR DISCLOSED IN THE NOTES THERETO OR IS BASED UPON OR RESULTS FROM THE
OPERATIONS OF THE COMPANY OR THE BUSINESS ON, PRIOR TO, OR AFTER THE CLOSING, AND EVEN IF COMPANY
IS OPERATED IN THE SAME MANNER AFTER THE CLOSING AS PRIOR TO THE CLOSING.
6.3 Indemnification by Buyer. Subject to the limitation in time set forth in Section
6.1 above and the limitations set forth below in Section 6.6(b), Sellers and their officers,
directors, employees, successors and assigns shall be indemnified and held harmless by Buyer from
any and all liabilities, losses, damages (excluding consequential damages), claims, costs and
expenses, interest, awards, judgments and penalties (including, without limitation, reasonable
legal costs and expenses) actually suffered or incurred by it (hereinafter a “Seller Loss”)
actually arising out of or resulting from:
(a) the breach of any representation or warranty by Buyer contained herein; or
(b) the breach of any covenant or agreement by Buyer contained herein or in any document
delivered hereunder at the Closing.
6.4 Indemnification Procedures.
(a) For the purposes of this Section 6.4 and Section 6.5, the term “Indemnitee” shall
refer to the person indemnified, or entitled, or claiming to be entitled to be indemnified,
pursuant to the provisions of Section 6.2 or 6.3, as the case may be; the term “Indemnitor”
shall refer to the person having the obligation to indemnify pursuant to such provisions; and
“Losses” shall refer to the “Seller Losses” or the “Buyer Losses”, as the case may be.
(b) An Indemnitee shall give written notice (a “Notice of Claim”) to the Indemnitor
within ten (10) business days after the Indemnitee has actual knowledge of any claim (including a
Third Party Claim, as hereinafter defined) which an Indemnitee has determined has given or could
give rise to a right of indemnification under this Agreement. A claim shall be
deemed covered by this Section 6 if it arises within the period set forth in Section 6.1 above and
notice is given by Indemnitee to Indemnitor no later than sixty (60) days after expiration of said
applicable period. The Notice of Claim shall state the nature of the claim, the amount of the Loss,
if known, and the method of computation thereof, all with reasonable particularity and containing a
reference to the provisions of this Agreement in respect of which such right of indemnification is
claimed or arises.
(c) The obligations and liabilities of an Indemnitor under this Article VI with respect to
losses arising from claims of any third party that are subject to the indemnification provisions
provided for in this Article VI (“Third Party Claims”) shall be governed by and contingent
upon the following additional terms and conditions: The Indemnitee at the time it gives a Notice of
Claim to the Indemnitor of the Third Party Claim shall advise the Indemnitor that it shall be
permitted, at its option, to assume and control the defense of such Third Party Claim at its
expense and through counsel of its choice if it gives prompt notice of its intention to do so to
the Indemnitee and confirms that the Third Party Claim is one with respect to which the Indemnitor
is obligated to indemnify. In the event the Indemnitor exercises its right to undertake the defense
against any such Third Party Claim as provided above, the Indemnitee shall cooperate with the
Indemnitor in such defense and make available to the Indemnitor all witnesses, pertinent records,
materials and information in its possession or under its control relating thereto as is reasonably
required by the Indemnitor and the Indemnitee may participate by its own counsel and at its own
expense in defense of such Third Party Claim. Similarly, in the event the Indemnitee is, directly
or indirectly, conducting the defense against any such Third Party Claim, the Indemnitor shall
cooperate with the Indemnitee in such defense and make available to it all such witnesses, records,
materials and information in its possession or under its control relating thereto as is reasonably
required by the Indemnitee and the Indemnitor may participate by its own counsel and/ at its own
expense in the defense of such Third Party Claim. Except for the settlement of a Third Party Claim
which involves the payment of money only, no Third Party Claim may be settled or judgment entered
by consent by the Indemnitor without the written consent of the Indemnitee, which consent shall not
be unreasonably withheld or delayed. No Third Party Claim may be settled or judgment entered by
consent by the Indemnitee without the written consent of the Indemnitor, which consent shall not be
unreasonably withheld or delayed.
6.5 Dispute Resolution. If the Indemnitor disagrees with any matter relating to the claim that
constitutes the subject matter of the Notice of Claim, the Indemnitee shall, within fifteen (15)
days after the reception of the Notice of Claim, provide the Indemnitee with notice of such
disagreement (a “Disagreement Notice”) setting forth in reasonable detail the nature and
basis of such disagreement. If the Indemnitor timely provides a Disagreement Notice to the
Indemnitee, representatives of each Party shall meet promptly and attempt in good faith to resolve
any differences. If the Parties cannot mutually resolve such disagreement within fifteen (15) days
after the Indemnitee’s receipt of the Disagreement Notice, such dispute shall be submitted to
arbitration as provided under Section 7.7.
6.6 Limitations on Indemnification.
(a) Notwithstanding anything herein to the contrary, Sykes and Sellers shall not be obligated
to indemnify the Buyer under Section 6.2: (i) unless the aggregate of all of the Buyer Loss exceeds
Fifty Thousand United States Dollars (US$50,000.00) (the “Sellers’ Basket”), in which case
the Buyer shall be entitled to recover all of the Buyer Loss, including such US $50,000.00 (minus a
deductible of US$10,000.00) or (ii) to the extent that the aggregate of all the Buyer Losses
exceed One Million (US$1,000,000.00) (the “Sellers’ Indemnification Cap”), provided,
however, that the Sellers’ Basket and the Sellers’ Indemnification Cap shall not apply to any Sykes
and Sellers indemnification obligation arising out of, relating to or resulting from fraud by Sykes
or any of Sellers, in which case no liability cap shall apply.
(b) Notwithstanding anything herein to the contrary, Buyer shall not be obligated to indemnify
Sellers under Section 6.3 (i) unless the aggregate of all of the Sellers Loss exceeds Fifty
Thousand United States Dollars (US$50,000.00) (the “Buyer’s Basket”), in which case the
Sellers shall be entitled to recover all of the Sellers’ Loss, including such US$100,000.00 (minus
a deductible of US$10,000.00) or (ii) to the extent that the aggregate of all the Sellers Losses
exceed One Million United States Dollars (US$1,000,000.00) (the “Buyer’s Indemnification
Cap”), provided, however, that the Buyer’s Basket and the Buyer’s Indemnification Cap shall not
apply to any Buyer indemnification obligation arising out of, relating to or resulting from (x)
fraud by Buyer, in which case no liability cap shall apply or (y) a breach of Buyer’s
representations and warranties in Sections 4.
(c) For all purposes of this Section 6, the Buyer Loss or the Sellers Loss, as the case may
be, shall be net of (i) any insurance or other recoveries payable to the indemnified Party or its
Affiliates in connection with the facts giving rise to the right of indemnification and (ii) any
tax benefit available to the indemnified Party or its Affiliates arising in connection with the
accrual, incurrence or payment of any such Buyer Loss or Sellers Loss, as the case may be.
6.7 Statutes of Limitations. Neither the Buyer, Sykes, Sellers nor any other person
who may be entitled to indemnification pursuant to this Article VI shall agree to any extension of
a statute of limitations that may be applicable to a Third Party Claim in respect of which a Party
hereto may be obligated to provide indemnification under this Article VII without the prior written
consent of such potential Indemnitor.
6.8 Exclusive Remedy. From and after the Closing, except for fraud, no Party hereto
shall be liable or responsible in any manner whatsoever to the other Parties, whether for
indemnification or otherwise, except for indemnity as expressly provided in this Article VI and in
Section 2.4, which provide the sole and exclusive remedies and causes of action of the Parties
hereto with respect to any matter arising out of or in connection with the Agreement. Each Party
hereto shall take all reasonable steps to mitigate its damages (i.e., the Buyer Loss or the Seller
Loss, as the case may be) upon and after becoming aware of any event which could reasonably be
expected to give rise to any damages.
6.9 Effect of Buyer Knowledge. No claim for indemnity for a breach of a particular
representation, warranty or covenant shall be made after the Closing if the Buyer had Knowledge
(including by virtue of any disclosure schedule) of such breach as of the Closing.
ARTICLE VII
MISCELLANEOUS
7.1 Modifications. Any amendment, change or modification of this Agreement shall be
void unless in writing and signed by all Parties hereto. No failure or delay by any Party hereto in
exercising any right, power or privilege hereunder (and no course of dealing between or among any
of the Parties) shall operate as a waiver of any such right, power or privilege. No waiver of any
default on any one occasion shall constitute a waiver of any subsequent or other default. No single
or partial exercise of any such right, power or privilege shall preclude the further or full
exercise thereof.
7.2 Notices. All notices, requests, claims, demands and other communications hereunder
shall be in writing and shall be deemed duly given or made if sent by registered or certified mail
(postage prepaid, return receipt requested) or by a recognized overnight delivery service (with
delivery confirmed) to the respective Parties at the following addresses (or at such other address
for a Party as shall be specified in a notice given in accordance with this Section):
Sellers and Sykes:
Xxxxx Enterprises, Inc.
000 Xxxxx Xxxxxx Xxxxx
Xxxxx, XX 00000
Attention: General Counsel
000 Xxxxx Xxxxxx Xxxxx
Xxxxx, XX 00000
Attention: General Counsel
and a copy (which shall not constitute notice) to:
Xxxxxxxx, Loop & Xxxxxxxx, LLP
000 Xxxx Xxxxxxx Xxxxxxxxx
Xxxxx 0000
Xxxxx, XX 00000
Attention: Xxxx X. Xxxxx, Esq.
000 Xxxx Xxxxxxx Xxxxxxxxx
Xxxxx 0000
Xxxxx, XX 00000
Attention: Xxxx X. Xxxxx, Esq.
The Buyer:
Xxxxxxx Xxxxxxx Cid
Mza 50 /Lote 14
Country Lomas de los Carolinos
Ciudad xx Xxxxxxx
Xxxxxxxxx xx Xxxxxxx
Xxxxxxxxx Xxxxxxxxx
Mza 50 /Lote 14
Country Lomas de los Carolinos
Ciudad xx Xxxxxxx
Xxxxxxxxx xx Xxxxxxx
Xxxxxxxxx Xxxxxxxxx
Xxxxxxxx Xxxxxx Sahade
Del Moradillo 8861
Country Las Delicias
Xxxxxx xx Xxxxxxx
Xxxxxxxxx xx Xxxxxxx
Xxxxxxxxx Xxxxxxxxx
Del Moradillo 8861
Country Las Delicias
Xxxxxx xx Xxxxxxx
Xxxxxxxxx xx Xxxxxxx
Xxxxxxxxx Xxxxxxxxx
and a copy (which shall not constitute notice) to:
Xxxxxxx Xxxxxxxxx, Esq
Xxxxxxx Xxxxxxx xxxxxxx Xxxxxxxxx Xxxxxxxxx (Xxxx 0x)
Xxxxxx xx Xxxxxxx (0000)
Xxxxxxxxx xx Xxxxxxx
Xxxxxxxxx Xxxxxxxxx
Xxxxxxx Xxxxxxx xxxxxxx Xxxxxxxxx Xxxxxxxxx (Xxxx 0x)
Xxxxxx xx Xxxxxxx (0000)
Xxxxxxxxx xx Xxxxxxx
Xxxxxxxxx Xxxxxxxxx
or to such other address as to any Party hereto as such Party shall designate by notice pursuant to
this Section 7.2 to the other parties hereto.
7.3 Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original but all of which counterparts collectively shall constitute one
instrument, and, in making proof of this Agreement, it shall never be necessary to produce or
account for more than one such counterpart. Each Party may rely upon: (i) original signatures; (ii)
signatures delivered via facsimile, or by digital and/or electronic means; and (iii) digital
signatures duly referencing the Agreement (except with respect to documents required to be signed
in the presence of a third party or documents having an additional qualifying requirement in
addition to the signature) and each of the foregoing methods constitutes a sufficient signing of
record and shall carry the full legal force and effect of a handwritten signature under Florida
law.
7.4 Expenses. Each of the Parties hereto will bear all costs, charges and expenses
incurred by such Party in connection with this Agreement and the consummation of the transactions
contemplated herein.
7.5 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the Company, the Buyer and the Sellers, their heirs, representatives, successors, and
permitted assigns, in accordance with the terms hereof. Neither this Agreement nor the
representations and warranties contained herein shall be assignable by the Buyer without the prior
written consent of Sykes exercising sole and absolute discretion. Nothing in this Agreement,
expressed or implied, is intended to confer upon any other person any rights or remedy under or by
reason of this Agreement.
7.6 Entire and Sole Agreement. This Agreement and the other schedules and agreements
referred to herein, constitute the entire agreement between the parties hereto and supersede all
prior agreements, representations, warranties, statements, promises, information, arrangements and
understandings, whether oral or written, express or implied, with respect to the subject matter
hereof.
7.7 Applicable Law. Dispute Resolution.
(a) This Agreement and its validity, construction, enforcement, and interpretation shall be
governed by the laws of State of Florida, United States of America.
(b) Any controversy or claim arising out of or relating to this Agreement or any transactions
provided for herein, or the breach thereof, other than a claim for injunctive relief or a claim for
specific performance, shall be settled by arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association in effect at the time demand for arbitration is made
by any Party. The evidentiary and procedural rules in such proceedings shall be kept to the minimum
level of formality that is consistent with such Commercial Arbitration Rules. One arbitrator shall
be named by the Buyer, a second shall be named by Sellers, and the third arbitrator shall be named
by the two arbitrators so chosen. In the event that the third arbitrator is not agreed upon, he or
she shall be named by the American Arbitration Association. Arbitration shall occur in Tampa,
Florida or such other location agreed to in writing by the Buyer and Sellers. The award made by all
or a majority of the panel of arbitrators shall be final and binding, and judgment may be entered
in any court of law having competent jurisdiction. The award is subject to confirmation,
modification, correction, or vacation only as explicitly provided in Title 9 of the United States
Code. The prevailing party shall be entitled to an award of pre- and post-award interest as well as
reasonable attorneys’ fees incurred in connection with the arbitration and any judicial proceedings
related thereto. Any action at law or in equity arising out of or relating to this Agreement and
permitted under or notwithstanding the provisions of this Section 7.7 shall be brought only in a
court of competent jurisdiction located in Tampa, Florida, and, for purposes of any such action,
the parties hereby expressly consent and agree to be subject to and to submit themselves to the
jurisdiction of the courts in such location.
7.8 Invalid Provisions. If any provision of this Agreement is deemed or held to be
illegal, invalid or unenforceable, this Agreement shall be considered divisible and inoperative as
to such provision to the extent it is deemed to be illegal, invalid or unenforceable, and in all
other respects this Agreement shall remain in full force and effect; provided, however, that if any
provision of this Agreement is deemed or held to be illegal, invalid or unenforceable there shall
be added hereto automatically a provision that is as similar as possible to such illegal, invalid
or unenforceable provision and is legal, valid and enforceable. Further, should any provision
contained in this Agreement ever be reformed or rewritten by any judicial body of competent
jurisdiction, such provision as so reformed or rewritten shall be binding upon all parties hereto.
7.9 Public Announcements. Neither Party shall make any public announcement of the
transactions contemplated hereby without the prior written consent of the other Party, which
consent shall not be unreasonably withheld.
7.10 Specific Performance. It is agreed that in the event of a breach of any covenant
of this Agreement, the aggrieved Party shall be entitled to specific performance of this Agreement
and to enjoin any continuing breach of this Agreement (without necessity of
providing actual damages and without posting bond or other security), in addition to any other
remedy to which such aggrieved Party may be entitled to at law or in equity.
7.11 Stamp Tax. The present Agreement is exempt from the payment of stamp tax pursuant
to Section 221, subsection 16, of the Province of Córdoba fiscal code.
7.12 Authorization for Initialization of Schedules and Exhibits. Sykes and Sellers
hereby appoint, indistinctively, Xxxxxxx Xxxxx and Xxxxxxx Xxxxxx with the authority to initialize
each page of this Agreement (other than the signature page) and all schedules and exhibits hereto
on behalf of Sykes and Sellers.
[signature page to follow]
IN WITNESS WHEREOF, this Agreement is executed in three equal counterparts on the date and year
first above written.
SELLERS AND SYKES: | ||||||
SEI International Services, S.a.r.l. | Xxxxx Enterprises Incorporated Holdings, B.V. | |||||
By:
|
/s/ Xxxxx X. Xxxxxx | By: | /s/ Xxxxx X. Xxxxxx | |||
Name:
|
Xxxxx X. Xxxxxx
|
Name: | Xxxxx X. Xxxxxx |
|||
Title:
|
Manager A
|
Title: | Director |
|||
By:
|
/s/ Xxxxxx van’t Xxxxx | |||||
Name:
|
Xxxxxx Van’t Xxxxx |
|||||
Title:
|
Manager B |
|||||
Xxxxx Enterprises, Incorporated | ||||||
By:
|
/s/ Xxxxx X. Xxxxxx | |||||
Name:
|
Xxxxx X. Xxxxxx |
|||||
Title:
|
Executive Vice President |
|||||
THE BUYER: | ||||||
/s/ Xxxxxxx Xxxxxxx Cid | /s/ Xxxxxxxx Xxxxxx Sahade | |||||
Xxxxxxx Xxxxxxx Cid | Xxxxxxxx Xxxxxx Sahade |