EXHIBIT 10.12
OPTION AGREEMENT
OPTION AGREEMENT, dated as of January 21, 1997, among Genmar Holdings,
Inc., a Delaware corporation ("Purchaser"), and RDV Corporation, a Michigan
corporation ("RDV").
WITNESSETH
WHEREAS, RDV desires to grant to Purchaser the option to purchase up to
$25,000,000 aggregate principal amount of 13 1/2% Series A Senior Subordinated
Notes due 2001 (the "Notes") issued by Purchaser, subject to the terms and
conditions set forth herein;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
promises, covenants and conditions hereinafter contained, the parties agree as
follows:
1. OPTION. Subject to the terms and conditions set forth herein, RDV
hereby grants Purchaser the option (the "Option") to purchase up to $25,000,000
aggregate principal amount of Notes for a purchase price equal to the principal
amount thereof plus accrued but unpaid interest thereon to, but not including,
the date of payment for the purchase of any of the Notes. The Option may be
exercisable at any time or from time to time, in whole or in part, on not less
than three business days notice to RDV during the period (the "Exercise Period")
commencing on January 21, 1997 to and including January 19, 1998. The purchase
price for any purchase of the Notes hereunder shall be paid by wire transfer of
immediately available funds to an account designated by RDV.
2. PAYMENT FOR THE OPTION. In consideration for granting the Option,
Purchaser hereby agrees to pay an aggregate of $825,000 to RDV by wire transfer
of immediately available funds not later than January 21, 1997 to an account
designated by RDV.
3. REPRESENTATIONS AND WARRANTIES OF RDV. RDV hereby represents and
warrants to the Purchaser that:
3.1 AUTHORITY. RDV has all requisite power and authority to enter into
this Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby. This Agreement and the transactions
contemplated hereby have been duly authorized by all necessary action on RDV's
part, and this Agreement is the legal, valid and binding agreement of RDV
enforceable in accordance with its terms.
3.2 OWNERSHIP OF THE NOTES. RDV has good and valid title to the Notes
free and clear of all liens, charges, claims or encumbrances whatsoever and,
upon the transfer of the Notes in accordance with this Agreement, Purchaser will
have good and valid title to the Shares free and clear of all liens, charges,
claims or encumbrances whatsoever.
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4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser
hereby represents and warrants to RDV that Purchaser has all requisite power and
authority to enter into this Agreement, to perform its obligations hereunder and
to consummate the transactions contemplated hereby. This Agreement and the
transactions contemplated hereby have been duly authorized by all necessary
action on the Purchaser's part, and this Agreement is the legal, valid and
binding agreement of Purchaser enforceable in accordance with its terms.
5. CERTAIN COVENANTS.
5.1 NO OTHER REPURCHASE. The Purchaser agrees that, during the Exercise
Period and until the Option is exercised in full, it will not purchase any Notes
from any other person except as may be required pursuant to the indenture
governing the Notes or by law.
5.2 NO OTHER SALES. RDV agrees that, during the Exercise Period, it
shall not sell, transfer, subject to option, pledge or otherwise dispose of any
of the Notes owned by it and subject to the Option hereunder.
6. MISCELLANEOUS.
6.1 NOTICES. Except as otherwise provided in this Agreement, notices
and other communications under this Agreement shall be in writing and shall be
delivered by hand, or sent by registered or certified mail, addressed as set
forth below, or sent by telecopy or similar form of telecommunications, and
shall be deemed to have been given when received. Any such notice or other
communication shall be addressed (a) if to the Purchaser, to 000 Xxxxx Xxxxx
Xxxxxx, Xxxxx 0000, Xxxxxxxxxxx, Xxxxxxxxx 00000 (Attn: General Counsel); and
(b) if to RDV, to 500 Grand Bank Building, 000 Xxxxxx, X.X., Xxxxx Xxxxxx,
Xxxxxxxx 00000, or to such other address as such party shall have furnished to
the other parties in writing.
6.2 AMENDMENTS. Any terms of this Agreement may be amended by, and only
by, an instrument in writing signed by the Purchaser and RDV.
6.3 EFFECT OF AGREEMENT. This Agreement, including the representations
and warranties contained herein, contains the entire agreement between the
Purchaser and RDV with respect to the subject matter hereof and supersedes any
prior agreement or understandings between the Purchaser and RDV with respect to
such subject matter.
6.4 GOVERNING LAW. This Agreement shall be governed by and construed
and interpreted in accordance with the laws of the State of Minnesota.
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6.5 COUNTERPARTS. This Agreement may be executed simultaneously in two
or more counterparts, each of which shall be deemed in original, but all of
which together shall constitute one and the same instrument.
RDV CORPORATION
By: Xxxxx Xxxxxxxx
Its: President
GENMAR HOLDINGS, INC
By: Xxxxxxx X. Xxxxxxx
Its: Executive Vice President
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