ASSET PURCHASE AGREEMENT <?xml:namespace prefix = o ns = "urn:schemas- microsoft-com:office:office" />
Exhibit 2.01
ASSET PURCHASE AGREEMENT <?xml:namespace prefix = o ns
= "urn:schemas-microsoft-com:office:office" />
BETWEEN
OMGI SUB, LLC
A Florida LIMITED LIABILITY COMPANY, AS BUYER
AND
ORION MARINE GROUP, INC., A
<?xml:namespace prefix = st1 ns =
"urn:schemas-microsoft-com:office:smarttags" />DELAWARE COPORATION
and
SUBAQUEOUS SERVICES, INC.
A Florida CORPORATION, AS SELLER
AND
XXXXX
XXXXX,
sole
Shareholder OF SELLER
february 29, 2008
ARTICLE 2..........
CLOSING.............................................................................................
1
ARTICLE 3.......... THE
TRANSACTION..........................................................................
1
3.1......
Assets..........................................................................................................
1
3.2...... Purchase
Price.............................................................................................
1
3.3...... Assumed
Liabilities.......................................................................................
3
3.4...... Excluded
Liabilities.......................................................................................
4
ARTICLE 4..........
REPRESENTATIONS AND WARRANTIES of seller AND THE
SHAREHOLDER..............................................................................................................
4
4.1...... Organization,
Qualification and Corporate Power..........................................
4
4.2...... Authorization of
Transaction.........................................................................
4
4.3......
Non-contravention.......................................................................................
4
4.4...... Governmental
Consent.................................................................................
5
4.5...... Stock Ownership;
Other Interests.................................................................
5
4.6...... Financial
Statements.....................................................................................
5
4.7...... Indebtedness;
Undisclosed
Liabilities............................................................
6
4.8......
Inventory......................................................................................................
6
4.9...... Recent
Events..............................................................................................
6
4.10.... Real
Property...............................................................................................
7
4.11.... Tangible Personal
Property...........................................................................
8
4.12.... Compliance with
Laws.................................................................................
8
4.13.... Affiliate
Agreements.....................................................................................
8
4.14.... Agreements,
Encumbrances..........................................................................
8
4.15.... Intellectual
Property......................................................................................
9
4.16.... Employee
Benefits......................................................................................
10
4.17.... Labor, Employee
Relations.........................................................................
10
4.18....
Litigation....................................................................................................
10
4.19.... Environmental
Matters................................................................................
11
4.20.... Tax
Matters...............................................................................................
11
4.21.... Brokers
Fees.............................................................................................
12
4.22.... Approvals and
Consents.............................................................................
12
4.23.... Sufficiency of
Assets...................................................................................
12
4.24....
Disclosures.................................................................................................
12
4.25 Insurance
Coverage……………………………………………………...13
ARTICLE 5..........
REPRESENTATIONS AND WARRANTIES of BUYER................ 13
5.1......
Organization...............................................................................................
13
5.2...... Authorization of
Transaction.......................................................................
13
5.3......
Non-contravention.....................................................................................
13
5.4...... Broker’s
Fees............................................................................................
14
5.5...... Governmental
Consent...............................................................................
14
ARTICLE 6..........
closing
deliveries....................................................................
14
6.1...... Deliveries by
Seller at the
Closing...............................................................
14
6.2...... Deliveries by
Buyer at the
Closing...............................................................
15
6.3...... Deliveries after
Closing...............................................................................
15
ARTICLE 7..........
INDEMNIFICATION........................................................................
15
7.1...... Indemnification by
Seller and the Shareholder..............................................
15
7.2...... Certain Limits on
Indemnification by Seller; Offset.......................................
16
7.3...... Indemnification by
Buyer............................................................................
16
7.4 Certain Limits on Indemnification
by Buyer.............................................16
7.5 Matters Involving Third
Parties………………………………………….17
ARTICLE 8..........
CERTAIN post-closing COVENANTS AND AGREEMENTS……………………………………………..............
17
8.1 Tax
Allocation……………………………………………………...........17
8.2 Transfer
Taxes……………………………………………………...........18
8.3...... Payroll
Taxes.............................................................................................
18
8.4...... Certain Provisions
Related to Consents.......................................................
18
8.5...... Post-Closing
Assistance.............................................................................
19
8.6...... Buyer/Shareholder
Confidentiality...............................................................
19
8.7...... Tax Return
Cooperation.............................................................................
20
8.8...... Litigation
Support.......................................................................................
20
8.9...... Books and
Records....................................................................................
20
8.10.... Receivables;
Certain
Payables....................................................................
20
8.11....
Non-competition........................................................................................
21
8.12 Access and Reasonable
Support…………………………………………22
ARTICLE 9..........
Employment.................................................................................
22
9.1...... Offer to
hire...............................................................................................
22
9.2...... Terms of
Employment.................................................................................
22
9.3......
Severance..................................................................................................
22
9.4...... Health and Welfare
Benefits........................................................................
22
9.5...... Employee Benefit
Plans..............................................................................
23
9.6...... Wage
Reporting.........................................................................................
23
9.7 WARN
Act………………………………………………………………23
9.8...... Employee
Rights.........................................................................................
23
ARTICLE 10........
Survival.........................................................................................
24
10.1....
Survival......................................................................................................
24
ARTICLE 11
PERFORMANCE AND PAYMENT BONDS;
INSURANCE…….24
11.1 Assignment or Transfer………………………………………………….24
11.2 Bond Indemnity Obligations…………………………………………….24
11.3 Cooperative Efforts……………………………………………………...24
11.4 Additional Insureds……………………………………………………...24
ARTICLE 12........
Miscellaneous...........................................................................
25
12.1.... Press Releases and
Announcements............................................................
25
12.2.... Third Party
Beneficiaries.............................................................................
25
12.3.... Entire
Agreement........................................................................................
25
12.4.... Succession and
Assignment........................................................................
25
12.5....
Counterparts..............................................................................................
25
12.6....
Headings....................................................................................................
25
12.7....
Notices......................................................................................................
25
12.8.... Governing
Law...........................................................................................
27
12.9.... Amendments and
Waivers..........................................................................
27
12.10..
Severability................................................................................................
27
12.11.. Expenses; Transfer
Taxes...........................................................................
27
12.12..
Construction...............................................................................................
28
12.13.. Incorporation of
Annexes, Exhibits and Schedules.......................................
28
12.14.. Certain
Remedies.......................................................................................
28
12.15.. Business
Days............................................................................................
28
12.16 Joint and Several Liability……………………………………………….28
ANNEXES, EXHIBITS AND
SCHEDULES
ANNEXES
Annex I – Definitions
EXHIBITS
Exhibit A – Form of Assignment and
Assumption Agreement
Exhibit B – Form of Xxxx of
Sale
Exhibit C – Form of Consulting Agreement
with Xxxxx Xxxxx
Exhibit D – Form of Comfort Letter From Project
Owners
Exhibit E – Form of Trademarks and Copyrights
Assignment
Exhibit F – Allocation of Purchase Price
SCHEDULES
Schedule
3.2.4
Current Retainage Amounts—Transferred
Projects
Schedule
4.1
Jurisdictions
Schedule
4.3
Conflicts, Required Consents
Schedule
4.4
Governmental Consents
Schedule
4.5
Stock Ownership
Schedule
4.6
Financial Statements
Schedule
4.7(a)
Indebtedness
Schedule
4.7(b)
Undisclosed Liabilities
Schedule
4.8
Inventory Matters
Schedule
4.9
Recent Events
Schedule
4.10.1
Real Property
Schedule
4.10.2
Lease Agreements
Schedule
4.11
Personal Property, Leases
Schedule
4.12
Legal Compliance
Schedule
4.13
Affiliate Agreements
Schedule
4.14
Agreements, Encumbrances
Schedule
4.14-1
Assumed Contracts
Schedule
4.15
Intellectual Property
Schedule
4.16
Employee Benefit Plans
Schedule
4.17
Labor Relations
Schedule
4.18
Litigation
Schedule
4.19
Environmental Matters
Schedule
4.20 Tax
Deficiencies
Schedule
4.23
Sufficiency of Assets Exceptions
Schedule
5.5
Governmental Consents
Schedule
8.11.1
Activities Scope
Schedule
A
Excluded Assets
THIS ASSET PURCHASE
AGREEMENT (this “Agreement”) dated February 29, 2008 (the “Closing Date”), is by
and between OMGI Sub, LLC, a Florida limited liability company (“Buyer”), and
Orion Marine Group, Inc., a Delaware corporation and parent company of Buyer
(“OMGI”), on the one hand, and Subaqueous Services, Inc., a Florida corporation
(“Seller”), and Xxxxx Xxxxx, individually and as the sole holder of stock of
Seller (“Shareholder”), on the other hand. Buyer, OMGI, Seller and the
Shareholder are sometimes referred to individually herein as a “Party” and
collectively herein as the “Parties.”
WHEREAS, on the terms and
subject to the conditions set forth in this Agreement, Seller desires to sell,
and Buyer desires to buy, the Assets; and
WHEREAS, on the terms and
subject to the conditions set forth in this Agreement, the Shareholder desires
for Seller to sell the Assets to Buyer; and
WHEREAS, on the terms and
subject to the conditions set forth in this Agreement, each of the Shareholder
and OMGI is willing to make the representations and warranties and to enter into
the covenants and agreements set forth herein with respect to the purchase and
sale of the Assets;
NOW, THEREFORE, in
consideration of the representations, warranties, covenants, and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:
Capitalized terms used in
this Agreement but not defined in this Agreement shall have the meanings
ascribed to them in Annex I , which is attached
to and incorporated in this Agreement.
The closing of the
transactions provided for herein (the “Closing”) is taking place at 12:00 noon
Central Standard Time on the Closing Date.
3.1
Assets. On the terms and subject
to the conditions set forth in this Agreement, Seller is selling, transferring,
conveying, assigning and delivering to Buyer, and Buyer is purchasing from
Seller, free and clear of any and all Claims, Encumbrances, Indebtedness, Taxes,
Working Capital Liabilities, restrictions and limitations (except for the
Assumed Liabilities), all of the Assets.
3.2.1 Purchase Price . In consideration for the
transfer of Assets to Buyer as described in Section 3.1 above and otherwise as
provided in and subject to the terms and conditions of this Agreement, and in
consideration for the other agreements and obligations of Seller and of
Shareholder set forth or described herein, the total purchase price is
$35,000,000, subject to the provisions, terms and conditions of and adjustments
set forth in this Agreement (“Purchase Price”).
3.2.2 Purchase Price
Adjustment . The following terms as referenced in this subsection
shall have the meanings assigned to them below:
A.
“Xxxxxxxx in Excess of Costs and Estimated Earnings” means the current liability
as of the Closing Date, as properly recorded on Seller’s balance sheet in
accordance with GAAP, representing the amount, in the aggregate, invoiced to
customers but not yet earned, as determined in accordance with
GAAP.
B.
“Costs and Estimated Earnings in Excess of Xxxxxxxx” means the current asset as
of the Closing Date, as properly recorded on Seller’s balance sheet in
accordance with GAAP, representing the amount, in the aggregate, earned on
contracts but not yet invoiced to customers, as determined in accordance with
GAAP.
The
amounts in items A. and B. above shall, subject to the provisions below, be
determined using Seller’s estimating and costing methods (which shall be
consistent with and in accordance with GAAP) and shall be determined without
consideration or regard for any operations, events, acts, circumstances or
matters which occur after the Closing Date.
On
the Closing Date, the Purchase Price shall be adjusted by an amount to reflect
the difference between items A. and B. above as of the Closing Date (“Purchase
Price Adjustment”). Seller shall have completed the preparation of its financial
statements (which shall have been prepared in accordance with GAAP) for the
period ending on and as of the Closing Date and shall have provided such
financial statements and reasonable supporting documents to Buyer prior to the
Closing Date. During such preparation period, Seller shall have consulted with
Buyer periodically regarding its progress and results, and Buyer, at its
request, shall have been entitled from time to time to observe and review
Seller’s preparation of such financial statements and supporting documentation.
After such financial statements and documents shall have been provided to Buyer,
Buyer and Seller shall have consulted and exercised all reasonable efforts to
agree upon the actual difference between items A. and B. above. If Seller and
Buyer have been unable to agree, such matter shall have been or shall be
referred for determination to an independent outside accounting firm acceptable
to Seller and Buyer for resolution.
After
agreement to or determination of such amount, the Purchase Price shall have been
or shall be adjusted (i) downward by any amount by which item A. above exceeds
item B above; (ii) upward by any amount by which item B. above exceeds item A.
above; or (iii) not at all, in the event the amounts of items A. and B above are
equivalent. In the case of (i), the amount of the adjustment shall be paid by
subtracting such amount from the Purchase Price at Closing. In the case of (ii),
the amount of the adjustment shall be paid by adding such amount to the Purchase
Price at Closing. In the case of (iii), no adjustment to the Purchase Price
shall be made.
3.2.3. Payment of
Purchase Price . The Purchase Price shall be payable to Seller as
follows (collectively, the “Closing Payment”):
(a)
At Closing, but subject to the provisions, terms and conditions of
this Agreement, including Section 3.2.2 above, a payment in immediately
available funds of $35,000,000 (the “Closing Payment”).
(b)
The Purchase Price Adjustment, if any, shall be payable at Closing
as provided in 3.2.2 above.
(c) As respectively provided in
Sections 3.2.4 and 3.2.5 below.
3.2.4 Retainage—Transferred
Projects . Seller and Shareholder represent, warrant and covenant that
Schedule 3.2.4 hereto sets forth, as of the Closing Date, on a project by
project basis, amounts of retainage currently (as of the Closing Date) (i)
withheld by project owners with respect to all projects the subject of any
Assumed Contract (collectively, “Transferred Projects”), which amounts are,
subject only to time of release restrictions in the corresponding Assumed
Contract, validly and fully due and owing to Seller; and (ii) withheld by SSI
from subcontractors, suppliers or other third parties with respect to
Transferred Projects, which amounts are likewise, subject only to time of
release restrictions in the corresponding subcontracts or other contractual
arrangements, validly and fully due and owing to such subcontractors, suppliers
or other third parties. Individual retainage amounts described in ‘(i)” above,
net of (subtracting) corresponding individual retainage amounts described in
“(ii)” above, are hereinafter referred to in this subsection as “Net Retainage
Amounts.” To the extent that any such individual Net Retainage Amounts with
respect to individual Transferred Projects (other than any and all retainage
amounts with respect to the Goodby’s Creek project/corresponding Assumed
Contract, which are transferred hereby in their entirety by Seller to
Buyer as an Asset) have not been previously collected by or paid or transferred
to Seller, Buyer shall pay to Seller those individual Net Retainage Amounts
under specific Assumed Contracts at Closing, but only with respect to those
Transferred Projects/Assumed Contracts for which Buyer has received from Seller
a Comfort Letter in the form of Exhibit D hereto with no qualifications or
exceptions to the statements therein and with no negative indications as to
project status, executed and delivered by such project owner (“Comfort Letter”),
and only after receipt of such Comfort Letter. Any such payment by Buyer to
Seller of such Net Retainage Amounts shall, with respect to any specific
Transferred Project Net Retainage Amount, be due promptly after Buyer’s receipt
of such corresponding Comfort Letter. The Parties acknowledge and agree that
with respect to any Net Retainage Amount held at Closing pursuant to any Assumed
Contract with respect to which Buyer has not received such corresponding Comfort
Letter, Buyer shall have no obligation to pay to Seller any amount of any such
retainage, until and only if and after Buyer has received any such corresponding
Comfort Letter.
3.2.5. Support Payment . In
exchange for the access to facilities and personnel and support services
described in Section 8.12 below, Buyer shall pay to Seller on the Closing Date
an additional amount of $60,000.
3.3
Assumed Liabilities . On and as of
the Closing Date, subject to the terms and conditions of this Agreement, and in
consideration for the sale and transfer of the Assets, Buyer is assuming only
the Assumed Liabilities.
3.4
Excluded Liabilities . The Parties
hereby acknowledge and agree that Seller is retaining the Excluded Liabilities,
and Seller shall have the sole responsibility, obligation and liability to pay,
discharge and perform all Excluded Liabilities.
SELLER AND SHAREHOLDER
EXPRESSLY ACKNOWLEDGE AND AGREE THAT OTHER THAN THE ASSUMED LIABILITIES BUYER
SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO DISCHARGE, PAY, SUFFER, OR INCUR
ANY OBLIGATION, INDEBTEDNESS, LOSS, CLAIM OR LIABILITY OF THE SELLER OR RELATED
TO THE BUSINESS. The Parties further acknowledge and agree that nothing
in this Agreement or otherwise is intended to, nor should it be deemed or
construed to, imply that Buyer is assuming or is accepting responsibility for
any liability of any nature whatsoever, with the sole exception of the Assumed
Liabilities. Without limiting the generality of the foregoing, Seller and
Shareholder acknowledge and agree that Seller and/or Shareholder retain sole
responsibility and liability to pay and discharge, and that Seller and/or
Shareholder shall pay and discharge when due all (i) Indebtedness of the Seller
or related to the Business; (ii) all Working Capital Liabilities (including,
without limitation, accounts payable) of the Seller or related to the Business;
(iii) all Taxes of the Seller or related to the Business; and (iv) all insurance
premiums of Seller or related to the Business that are necessary to
maintain coverage under all of Seller’s insurance policies for the period up to
and including the Closing Date.
As a material inducement to Buyer and OMGI to
enter into this Agreement and to consummate the transactions contemplated
hereby, each of Seller and Shareholder jointly and severally represents and
warrants, to the best of their respective Knowledge (and all of the following
representations and warranties are qualified accordingly), the following to
Buyer and to OMGI:
4.1
Organization, Qualification and Corporate
Power . Seller is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Florida.
Seller has full corporate power and authority to carry on its businesses and to
own and use the properties and assets owned and used by it. Schedule 4.1 hereto includes a list of all
jurisdictions in which Seller conducts business or owns properties or
assets.
4.2
Authorization of Transaction .
Seller has full corporate power and authority and the Shareholder has full right
and authority to execute and deliver this Agreement and the other agreements
contemplated hereby to which it is a party and to perform its obligations
hereunder and there under. Without limiting the generality- of the foregoing, the
board of directors and Shareholder of Seller have duly authorized and approved
the execution, delivery and performance of this Agreement and the other
agreements contemplated herein to which it is a party, and the transactions
contemplated herein and therein. This Agreement and the other agreements
contemplated hereby to which Seller or Shareholder is a party constitute the
valid and legally binding obligations of Seller and Shareholder, enforceable
against them in accordance with their respective terms, except as enforceability
may be limited by bankruptcy, similar laws of debtor relief and general
principles of equity.
4.3
Non-contravention . Except as
disclosed on Schedule 4.3 , neither the execution, the delivery nor the
performance of this Agreement or the other agreements contemplated hereby, nor
the consummation of the transactions contemplated hereby or thereby, will
violate, conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any Person the right to accelerate,
terminate, modify, or cancel, or require any authorization, consent, approval,
execution or other action by or notice to any third party under, (i) the
articles of incorporation, bylaws, or other organic documents of Seller, (ii)
any contract, lease, sublease, license, sublicense, franchise, Permit,
Environmental Permit, indenture, agreement, instrument of Indebtedness,
Encumbrance, or other arrangement by which Seller (or any of its properties or
assets) or Shareholder is bound or affected, or (iii) any law, statute,
Environmental Law, rule, regulation, order, judgment, decree, stipulation,
injunction, charge or other restriction, to which Seller or any of its assets or
properties, or Shareholder, is subject.
4.4
Governmental Consent . Except as
set forth on Schedule 4.4 , neither Seller nor Shareholder is required to
make any declaration to or registration or filing with any Person, or to obtain
any Permit, in connection with the execution, delivery or performance of this
Agreement or the consummation of any of the transactions contemplated
hereby. Without limiting the generality of the
foregoing, neither Seller nor Buyer has any obligations or responsibilities
under or pursuant to the federal Workers Adjustment, Retraining, and
Notification Act, or any state counterpart thereof (the “WARN
Act”).
4.5
Stock Ownership; Other Interests .
Set forth on Schedule 4.5 is a true, correct and complete list of all
classes of capital stock of Seller, including common and preferred and voting
and non-voting, and the number of shares in each class and the number of shares
of each class owned by the Shareholder. All of the issued and outstanding
shares of stock of Seller have been duly authorized, are validly issued, fully
paid and non-assessable, and are owned, beneficially and of record, by the
Shareholder as shown on Schedule 4.5 free and clear of any
Encumbrances. Seller does not, directly or indirectly, beneficially or of
record, own or have any right to acquire an equity interest in any
Person. Except as set forth on Schedule 4.5 , Seller has not issued any debt
securities.
4.6
Financial Statements . Seller has
furnished Buyer with the following financial statements of Seller, which are or
shall be attached hereto as Schedule 4.6 (collectively, the “ Financial
Statements ”):
(i)
the unaudited (and the extent available, audited) balance sheets of
Seller as of December 31, 2007 (the “Latest Balance Sheet”), and for each
interim quarterly period, and related statements of income, cash flows and
changes in shareholder equity for the periods then ended, including all
supporting documentation, together with the same or acceptable substitutes for
the period January 1, 2008 to the Closing Date;
(ii)
the audited balance sheets of Seller as of December 31, 2004, 2005,
and 2006, and the related statements of income, cash flows and changes in
shareholder’s equity for the periods then ended;
(iii)
the financial statements and supporting documentation referenced in
Section 3.2.2 above; and
(iv)
the financial statements and supporting documentation referenced in
Section 4.9 below.
The
Financial Statements (including in all cases any notes thereto) fairly present
the financial condition and results of operations of Seller as of the times and
for the periods referred to therein, and have been prepared in accordance with
GAAP, consistently applied throughout the periods indicated, subject in the case
of interim and unaudited financial statements, to normal year-end adjustments
(none of which are material). The Financial Statements are accurate and
complete in all material respects and are consistent with the information in
Seller’s books and records (which, in turn, are accurate and complete in all
material respects).
Since
the date of the Latest Balance Sheet and since the date that Seller’s last
audited financial statements were issued, no event, condition or circumstance
has occurred, arisen or existed that requires or required, as the case may be,
Seller to (i) eliminate profits previously recognized for accounting purposes by
Seller or (ii) adjust downward the future profits to be recognized for
accounting purposes by Seller, with respect to any fixed-priced, lump sum
or guaranteed fixed price contract, or any other contract which has a fixed
revenue component (including but not limited to management fees or bonus or
penalty clauses), in either case in order to comply with GAAP (including the
percentage of completion method of accounting) and involving an amount
exceeding $25,000 in the aggregate.
4.7
Indebtedness, Working Capital Liabilities;
Undisclosed Liabilities . Set forth on Schedule 4.7(a) is a list
of (a) all Indebtedness and Working Capital Liabilities (including, without
limitation, the payee, the principal balance and all accrued interest,
prepayment penalties or other obligations required to be paid to extinguish such
Indebtedness and Working Capital Liabilities on the Closing Date) of Seller or
related to the Assets or Business, and which are outstanding as of the Closing
Date, and (b) all Encumbrances related to such Indebtedness or to any of the
Assets, all of which have been discharged and released as of the Closing Date.
Seller has no other material liabilities or obligations (whether absolute or
contingent, liquidated or unliquidated, or due or to become due) except for
liabilities and obligations set forth in Schedule 4.7(b) or in the
Latest Balance Sheet. All Indebtedness, Working
Liabilities, and Taxes of the Seller or related to the Business have been paid
as of the Closing Date, or, if not due then, shall be paid by Seller when
due.
4.8
Inventory . The amounts shown for
inventories on the Financial Statements were determined in accordance with the
valuation principles set forth on Schedule 4.8 and in accordance with
GAAP. Except as set forth on Schedule 4.8, the value of obsolete,
damaged or excess inventory and of inventory below standard quality has been
written down to net realizable value on the Latest Balance Sheet or adequate reserves have been provided therefor, and
the inventories are carried on the Latest Balance Sheet at the lower of cost or
market value. Except as expressly set forth herein, all inventory included in
the Assets is being transferred by Seller to Buyer on an “AS IS WHERE IS BASIS,” with
all faults and defects whatsoever. Other than the representations and warranties
made by Seller and Shareholder herein, neither makes any other representations
or warranties as to condition, value or otherwise of inventory and hereby
disclaims all other representations and warranties with respect thereto, whether
express or implied, and specifically disclaims THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTUCULAR PURPOSE.
4.9
Recent Events . Excepts as set
forth on Schedule 4.9 , since December 31, 2007, (i) there has not been
any Material Adverse Change; (ii) Seller has not sold, leased, transferred,
assigned or otherwise Encumbered any of the Assets; (iii) no Person has
accelerated, terminated, modified, or canceled any Indebtedness, contract,
lease, sublease, license, or sublicense (or series of related contracts, leases,
subleases, licenses, and sublicenses) involving more than $50,000 to which
Seller is a party or by which Seller or the Assets is bound, (iv) Seller
has not canceled, compromised, waived, or released any Claim (or series of
related Claims) either involving more than $50,000 or outside the Ordinary
Course of Business; (v) Seller has not experienced any damage, destruction, or
loss (whether or not covered by insurance) to its properties or assets (other
than ordinary wear and tear not caused by neglect); (vi) Seller has not entered
into any transaction, arrangement or contract with, or distributed or
transferred any property or other assets to, any officer, director, shareholder
or other insider or affiliate of Seller, other than salaries and employee
benefits and other transactions in the Ordinary Course of Business and
consistent with past practice; (vii) Seller has not entered into any other
material transaction (exceeding $50,000) outside the Ordinary Course of
Business; (viii) Seller has maintained its cash
management practices and policies, practices and procedures with respect to
collection of accounts receivable, establishment of reserves for uncollectible
accounts, establishment of reserves and adjustments related to all other working
capital assets, accrual of accounts receivable, inventory control, prepayment of
expenses, payment of accounts payable, accrual of other expenses, deferral of
revenue, and acceptance of customer deposits, in each case in accordance with
applicable GAAP and consistent with the Ordinary Course of Business; (ix) Seller
has not reduced or increased accounts receivable or accounts payable, or allowed
accounts receivable or accounts payable to be reduced or increased, below or
above levels consistent with the Ordinary Course of Business; (x) Seller has not
reduced inventory or work-in-process levels, or allowed inventory or
work-in-process levels to be reduced, below levels consistent with the Ordinary
Course of Business, (xi) Seller has maintained, repaired and replaced their
respective assets consistent with Ordinary Course of Business operations; (xii)
Seller has not made any loans or advances to any Person except xxxxx cash
advances in the Ordinary Course of Business not exceeding $5,000 in the
aggregate; (xiii) Seller has not incurred any other liability or obligation or
made payments in respect of any liability or obligations, except in the Ordinary
Course of Business and; (xiv) Seller has not entered into a binding commitment
to do any of the foregoing.
4.10.1
Seller owns no real property. Schedule
4.10.1 sets forth a complete and correct list of all real property
leased by Seller (the "Real Property"). The Real Property is the only real
property used by Seller in the current operation of the Business. Seller has not
received any notice from any utility company or municipality of any fact or
condition that could result in the discontinuation of presently available or
otherwise necessary sewer, water, electric, telephone or other utilities (or
capacity allocations related thereto) or services for the Real Property or
Transferred Projects sites. The Real Property and Transferred Projects sites
have access to sufficient quantities of water, sewer, electric, telephone, and
other utilities required to conduct the Business as presently conducted by
Seller.
4.10.2
True, correct and complete copies of the Hill Street Lease and the
Orange Avenue Lease (which are the only leases to which Seller is a party) are
attached hereto as Schedule 4.10.2 (the “Lease
Agreements”). The Lease Agreements are in full force and effect and
enforceable in accordance with their respective terms and Seller is in full
compliance with all Lease Agreement terms and conditions. There is no threatened
or pending Claim (or basis therefor) that any party to the Lease Agreements is
in default or otherwise not in compliance with the Lease Agreements. There is no
basis to terminate, suspend or modify the Lease Agreements or any rights or
privileges set forth in the Lease Agreements. Seller and Shareholder shall
provide access to premises and related facilities as provided in Section 8.12
below. Seller and Shareholder shall cooperate with Buyer and exercise reasonable
efforts to assist Buyer in entry into a new lease for the Jacksonville Yard.
4.11 Tangible Personal
Property . Schedule 4.11 contains a list of all material
personal property that is either owned or leased by Seller or used or useful in
the Business, including, without limitation, any and all equipment, vessels,
machinery, and all appurtenances, spare parts, and other related tangible
personal property. Seller has good and marketable title to all owned personal
property constituting Assets subject to no Encumbrances, Working Capital
Liabilities, Taxes, or Indebtedness, and Seller is conveying to Buyer at
Closing, good and marketable title to the Assets, in each case free and clear of
all Encumbrances, Working Capital Liabilities, Taxes, and Indebtedness.
All leases under which Seller leases any of the personal property, which are set
forth on Schedule 4.11, are in full force and effect and binding upon the
parties thereto. None of the parties to such leases is in breach of any of the
provisions thereof (nor is there a basis therefor). All personal property
leases in effect with respect to the Business are included in the Assets and
are, and upon consummation of the transactions contemplated hereby, will be
validly assigned and transferred to Buyer and will continue to be, in full force
and effect and constitute and will constitute valid and legally binding
agreements. Any required consents or notifications for assignment thereof are
set forth on Schedule 4.11 . The Assets are all either owned by or
validly leased to Seller and to no other entity or Person, and
at the Closing Date are free and clear of any and
all Encumbrances, Indebtedness, Taxes, Working Capital Liabilities, and Claims.
Except as expressly set forth herein, all tangible personal property included in
the Assets is being transferred by Seller to Buyer on an “AS IS WHERE IS BASIS,” with all
faults and defects whatsoever. Other than the representations and
warranties made by Seller and Shareholder herein, neither makes any other
representations or warranties as to condition, value or otherwise of tangible
personal property and hereby disclaims all other representations and warranties
with respect thereto, whether express or implied, and specifically
disclaims THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTUCULAR
PURPOSE.
4.12 Compliance with Laws . Except as set forth on
Schedule 4.12 , (i) Seller is in compliance in all
material respects and has operated the Business in compliance in all material
respects with all applicable federal, state, municipal, county, local and
foreign laws, statutes, ordinances, regulations, rules, policies, orders,
judgments, injunctions, awards, Permits and decrees applicable to the Business
or the ownership, lease or operation of any of the Assets, (ii) neither Seller
nor the Shareholder is aware of any basis of alleged or potential non-compliance
with any such laws, etc. or Permits related to
the Business or ownership, lease or operation of the Assets, and (iii) all
Permits are in full force and effect and no proceeding is pending or threatened
to revoke, limit or modify any such Permit. Any such Permits are
separately listed on Schedule 4.1 2.
4.13 Affiliate Agreements . Except as set
forth on Schedule 4.13 , there are no written or oral contracts,
agreements, arrangements or understandings between any shareholder and Seller,
or between any affiliate of any shareholder and Seller.
4.14 Agreements, Encumbrances . Set forth on
Schedule 4.14 is a list of all contracts, agreements, and similar
arrangements, whether written or oral, to which Seller is a party including,
without limitation, each (i) contract, purchase order, agreement and similar
arrangement for or with respect to (and all other rights and interests with
respect to) any and all jobs or projects in process or awarded as of the Closing
Date, and all outstanding offers, bids and solicitations made by or to
Seller (including all “low bidder” and quotation rights), and other similar
arrangements; (ii) employment agreement or similar arrangement between Seller
and any current or former employee; (iii) mortgage, indenture, note,
installment obligation, or other instrument for or relating to any
Indebtedness or borrowing of money, (iv) guaranty of any obligation for
borrowings or other Indebtedness, or performance, or guaranty or warranty of
products or services, excluding endorsements or guaranties of instruments made
in the Ordinary Course of Business in connection with the deposit of items for
collection, and express product and statutory warranties, (v) agreement or
arrangement for the sale or lease of any of the Assets, (vi) agreement or other
arrangement for the purchase of any real estate, machinery, equipment, or other
assets, (vii) contract pursuant to which it is or may be obligated to make
payments, contingent or otherwise, on account of or arising out of prior
acquisitions or sales of businesses, assets, or stock of other companies, (vii)
joint venture, partnership, partnering, materials supply, representation,
broker, sales agency, or advertising contract, agreement or arrangement,
excepting any such contract that is terminable at will, or by giving notice of
30 days or less, without liability, (vii) lease or other agreement for the use
of personal property other than in the Ordinary Course of Business, (viii)
agreement imposing non-competition or exclusive dealing obligations on Seller,
(ix) contract for the future purchase of materials, supplies, services,
merchandise, or equipment parts, except contracts made in the usual, regular,
and Ordinary Course of Business, and (x) contract or other agreement for the
sale or provision of goods or services or otherwise related to Assets or the
Business as currently conducted. Except as set forth in Schedule
4.14 , neither Seller nor any other party thereto is in default under any of
the contracts, agreements or similar arrangements nor has any event occurred
(nor does any condition exist) which upon notice or the passage of time would
result in any such default, and all such contracts, agreements or similar
arrangements are in full force and effect and are enforceable in accordance with
their respective terms. Schedule 4.14-1, Assumed Contracts , sets forth
the contracts, agreements, etc. that are being assumed
by Buyer pursuant to the terms of this Agreement; and Schedule 4.14-1
sets forth all contracts, purchase orders, agreements and similar
arrangements for (and all other rights and interests with respect to) any and
all jobs or projects in process or awarded as of the Closing Date, and all
outstanding bids, offers and solicitations made by or to Seller (including,
without limitation, all “low bidder” and quotation rights), and other similar
arrangements. Any required consents or notification for the assignment of the
Assumed Contracts are set forth separately on Schedule 4.14-1 .
Seller has made available to Buyer a copy
of each contract, agreement or similar arrangement listed on Schedule 4.14-1 or other written description of the
obligations related thereto, and all amendments thereto. Only those items listed in Schedule 4.14-1 are being assumed by Buyer (subject to the
terms and conditions of this Agreement); Seller retains sole responsibility and
liability with respect to all other items listed or described on Schedule
4.14 , and all related Claims and Losses. Subject to Sections 3.3,
3.4, 7.1, 7.3, and 8.4 of this Agreement, Buyer and OMGI shall be responsible
for completing the balance of the scope of work under Assumed Contracts for
Transferred Projects.
4.15 Intellectual Property . Set forth on
Schedule 4.15 is (i) a list of the Intellectual Property owned by Seller
or used by Seller in the Business, (ii) a complete description of every license,
fee, royalty and other amount payable by Seller in connection with the use of
any Intellectual Property, and (iii) a description of the terms and conditions
on which and periods for which such amounts are payable. Except as set forth in
Schedule 4.15 , Seller either owns or has the right to use by license,
sublicense, agreement, or permission all of the Intellectual Property, and all
rights granted or retained in licenses under any Intellectual Property which is
used in connection with the conduct of the Business as presently
conducted. Except as set forth on Schedule 4.15 , there is no basis
for, and none of the Intellectual Property which is used in connection with the
conduct of the Business is, or has been in the past five (5) years involved in,
or the subject of, any pending or threatened infringement, interference,
opposition or similar Claim or has otherwise been challenged in any way.
Neither Seller nor the Shareholder is aware that any of the Intellectual
Property infringes any intellectual property owned or used by a third
party. Except as set forth on Schedule 4.15 , the Intellectual
Property will afford Buyer the right to use all technology, know-how, technical
and other information, data and other Intellectual Property, whether patentable
or unpatentable, and whether owned by Seller, or any other Person, necessary for
the conduct of the Business in the Ordinary Course of Business.
Buyer shall have exclusive ownership of and
rights with respect to the names “Subaqueous Services, Inc.,” “Subaqueous,”
“Subaqueous Services,” “SSI” and any and all derivations thereof, the stylized
“S,” and all other trade names, trademarks, trade dress and other Intellectual
Property related to the Assets or the Business.
4.16.1 Employee Benefit Plans . Schedule 4.16 lists all
Employee Benefit Plans that Seller maintains or to which Seller contributes for
the benefit of Seller’s Employees (as defined in Section 9.1), and copies of
such Employee Benefit Plans have been made available to
Buyer..
4.16.2 Multi-Employer Plans . Neither Seller nor any member of its
Controlled Group currently or in the six (6) years prior to the Closing Date
sponsored, maintained or contributed to a Multi-Employer
Plan.
4.16.3 Compliance . With respect to each Employee Benefit Plan (i)
if intended to under Section 401(a) of the Code, such Employee Benefit Plan so
qualifies and its related trust is exempt from taxation under Code Section
501(a); (ii) such Employee Benefit Plans have been administered in all material
respects in accordance with their terms and applicable law; (iii) there are no
pending or threatened Claims with respect to any such Employee Benefit Plan,
other than ordinary course requests for the payment or provision of benefits;
and (iv) there are no liabilities, breaches, violations, defaults or other
Claims or Losses (including, without limitation, in respect of Taxes, but other
than ordinary course requests for the payment or provision of benefits)
(collectively, “Employee Benefits Liabilities”) under, threatened, pending, or
with respect to any such Employee Benefit Plan sponsored or maintained by Seller
or by any other organization which is or is a member of a Controlled Group of
which Seller is also member; and (v) without limiting “(iv)” immediately above,
there are no such Employee Benefits Liabilities which would or could subject the
Assets or Buyer to any Claims or Losses.
4.17 Labor, Employee Relations . Except as set forth on
Schedule 4.17 , Seller is not a party to any collective bargaining
agreement, there are no controversies or Claims pending or threatened between
Seller and any of its current or former employees or any labor or other
collective bargaining unit representing any current or former employee of Seller
that could reasonably be expected to result in a labor strike, dispute,
slow-down or work stoppage or otherwise have an adverse effect on Buyer.
There is no organizational effort presently being made or threatened by or on
behalf of any labor union with respect to employees of
Seller.
4.18 Litigation . Except as set forth in
Schedule 4.18 , there are no Claims pending or threatened against Seller
or the Shareholder affecting the Assets or the operation of the Business at law,
in equity, or before or by any governmental department, commission, board,
bureau, agency, or instrumentality, domestic or foreign, or private mediator or
arbitrator. Seller is not in default with respect to any order, writ,
injunction, or decree of any court or governmental department, commission,
board, bureau, agency, or instrumentality, domestic or foreign, or with respect
to any settlement or consent agreement.
4.19 Environmental Matters . Except as set
forth on Schedule 4.19 , (i) Seller has been in all material respects and
is in compliance with all Environmental Laws and Environmental Permits related
to the ownership, use, maintenance or operation of the Assets or otherwise
related to the conduct of the Business, (ii) no Environmental Claims are pending
or threatened with respect to the Assets or the Business, (iii) no Environmental
Claims have been made with respect to the Assets or the Business in the last
five (5) years, (iv) no Hazardous Materials have been released to the
environment by the Seller or on or under any Asset, or other property or
premises that Seller leases or has leased or at which Seller has performed any
work, except in full compliance with Environmental Laws and Environmental
Permits, (v) with respect to this subparagraph “(v)” only and no other
representation or warranty or provision in this Agreement, and notwithstanding
the definition herein of “Knowledge,” to Seller’s or Shareholder’s actual
knowledge (in lieu and instead of “Knowledge”), there are no underground storage
tanks on, or asbestos containing materials on or in, the Assets or the Real
Property, and (vi) all Environmental Permits necessary for the conduct of the
Business and required to be held or obtained by Buyer (if any) are in full force
and effect and copies thereof have been provided to Buyer, if
any.
4.20.1 Returns Filed and Taxes Paid . Seller and Shareholder are “US
Persons” as defined under Section 1445 of the Internal Revenue Code. All Tax
Returns required to be filed by or on behalf of Seller or in connection with the
Business have been prepared in the manner required by applicable laws and
regulations, were accurate and complete in all material respects and have been
duly filed on a timely basis with the appropriate taxing authority in all
jurisdictions in which such Tax Returns are or were required to be filed. All
Taxes shown to be payable on the Tax Returns or on subsequent assessments with
respect thereto have been paid in full on a timely basis, and no other Taxes are
payable by Seller or the Shareholder with respect to items or periods covered by
such Tax Returns (whether or not shown on or reportable on such Tax Returns) or
with respect to any period prior to the Closing Date. Seller has withheld and
paid over all Taxes required to have been withheld and paid over, and complied
with all information reporting and backup withholding requirements, including
maintenance of required records with respect thereto, in connection with amounts
paid or owing to any employee, creditor, independent contractor, or other third
party. All Taxes of Seller, related to the Business, or with respect to
the Assets for all years prior to calendar year 2007 have been paid in full on a
timely basis and there
are no Encumbrances on any of the assets of Seller (including, without
limitation, the Assets) with respect to Taxes, other than Encumbrances for Taxes
not yet due and payable, all of which Taxes Seller shall pay in full as of the
Closing Date, or if not then due, when due or payable.
4.20.2 Tax
Deficiencies; Audits; Statutes of Limitations . Except as set forth on
Schedule 4.20 , the Tax Returns related to the Business have never been
audited by a government or Taxing authority, nor is any such audit in process,
pending or threatened (either in writing or verbally, formally or
informally). No deficiencies have been asserted (either in writing or
verbally, formally or informally) or are expected to be asserted with respect to
Taxes of Seller or otherwise in connection with the Business, and neither Seller
nor Shareholder has received notice (either in writing or verbally, formally or
informally) or expects to receive notice that it has not filed a Tax Return (or
other required document) or paid Taxes required to be filed or paid by it.
Neither seller nor Shareholder is a party to any Claim for assessment or
collection of Taxes, nor has such event been asserted or threatened (either in
writing or verbally, formally or informally) against Seller or Shareholder or
any of the assets of the Business. No waiver or extension of any statute
of limitations is in effect with respect to Taxes or Tax Returns related to the
Business. No extension of time to file any Tax Return in respect of any
taxable period has been requested which has not since been filed. No power
of attorney with respect to Taxes imposed on or incurred by Seller, or
Shareholder has been granted which is currently in force. Neither the
Seller nor Shareholder has received a Tax ruling or entered into a closing
agreement with any Taxing authority that could have an adverse effect on any of
the Assets or the Business after the Closing Date. No Taxing authority has made
a pending or threatened Claim with respect to the filing of the Tax Returns
and/or payment of Tax in any jurisdiction in which Seller has not previously
filed Tax Returns or paid Tax.
4.20.3 Tax
Sharing Agreements . Neither Seller nor Shareholder is (nor have either
of them ever been) a party to any Tax sharing agreement and neither has any
liability for the Taxes of any other Person, whether by contract, or as
transferor, transferee, successor, or under any applicable law, or
otherwise.
4.20.4 Tax
Elections and Special Tax Status . Seller is not a party to any safe
harbor lease within the meaning of Section 168(f)(8) of the Code, as in effect
prior to amendment by the Tax Equity and Fiscal Responsibility Act of
1982. None of the assets of Seller is "tax-exempt use property" within the
meaning of Code Section 168(h). Seller has not been a United States real
property holding corporation (as defined in Code Section 897(c)(2)) during the
applicable period specified in Code Section 897(c)(1)(A)(ii). Neither
Shareholder nor Seller is a "foreign person" as that term is defined in Code
Section 1445. None of the Assets or other assets of the Business directly
or indirectly secures any Indebtedness the interest on which is tax exempt under
Section 103(a) of the Code.
4.21 Brokers Fees . Neither Seller nor
Shareholder has any liability or obligation to pay any fees or commissions to
any broker, finder, or agent with respect to the transactions contemplated by
this Agreement for which Buyer could become liable or
obligated.
4.22 Approvals and Consents . Except for the
approvals, authorizations, consents and other actions described in Schedule
4.3 , Schedule 4.4 , Schedule 4.11 and Schedule 4.14 (all
of which Seller and Shareholder shall exercise their respective reasonable
efforts to obtain or take), no approval, authorization, consent or other action
by, or filing with, any governmental authority, administrative agency, court or
other Person is necessary for Seller’s or Shareholder’s execution and delivery
of this Agreement or performance of its obligations hereunder or the
consummation of the transactions contemplated hereby.
4.23 Sufficiency of Assets . Except as set forth on Schedule 4.23 hereto, all of the assets used or useful
in the Business are owned or leased by Seller and included in the Assets, and
none of such assets are owned or leased by any other party. As of the Closing
Date, the Assets will be sufficient to permit Buyer to carry on the Business (as
presently conducted by Seller) as a going concern in the Ordinary Course of
Business on a stand-alone basis. Without limiting the generality of the
foregoing, the Assets include all computer hardware and software for management
information systems required to conduct the Business (as presently conducted by
Seller) in the Ordinary Course of Business.
4.24 Disclosures . No representation, warranty
or statement made by Seller or the Shareholder in this Agreement (including the
Schedules) or any document, instrument or written communication delivered by
Seller or the Shareholder to Buyer or its representatives in connection with the
transactions contemplated hereby contains or will contain any untrue statement
of a material fact or omits or will omit to state any material fact necessary to
make the statements contained herein or therein not
misleading.
4.25 Insurance
Coverage . As of the Closing Date and at all times prior, Seller
maintains and has maintained in full force and effect all insurance policies
necessary or appropriate for the conduct of the Business with limits, and
deductibles appropriate to the conduct of the Business. Except for employment
practices liability policies, all such polices are and have been written on an
“occurrences,” not a “claims made” basis, and Seller has paid as of the Closing
Date all premiums necessary to continue coverage under all such policies with
respect to the Closing Date and any period prior thereto. Seller has provided to
Buyer a summary of all such policies currently in effect.
As a material inducement to
Seller and the Shareholder to execute this Agreement and consummate the
transactions contemplated hereby, each of Buyer and OMGI, to the best of their
respective Knowledge (and the following representations and warranties are
qualified accordingly), hereby represents and warrants the following to Seller
and Shareholder:
5.1
Organization . Buyer is a limited
liability company duly organized, validly existing and in good standing under
the laws of the State of Florida. OMGI is a corporation duly organized, validly existing and in good
standing under the laws of the Sate of Delaware.
5.2
Authorization of Transaction . Each
of Buyer and OMGI has full power and authority to execute and deliver this
Agreement and the other agreements, documents and instruments contemplated
hereby to which it is a party, and to perform its respective obligations
hereunder and there under. This Agreement and the other agreements contemplated
herein to which the Buyer or OMGI is a party constitute the valid and legally
binding obligation of Buyer or OMGI, as the case may be, enforceable against
Buyer or OMGI, as the case may be, in accordance with their respective terms,
except as enforceability may be limited by bankruptcy, similar laws of debtor
relief and general principles of equity.
5.3
Non-contravention . Assuming the accuracy
and completeness of the representations and warranties and Schedules of Seller
and the Shareholder set forth in or attached to this Agreement, neither the
execution, delivery or performance of this Agreement or the other agreements
contemplated hereby to which the Buyer or OMGI is a party, nor the consummation
of the transactions contemplated hereby or thereby, will violate, conflict with,
result in a breach of, constitute a default under, result in the acceleration
of, create in any Person the right to accelerate, terminate, modify, or cancel,
or require any authorization, consent, approval, execution or other action by or
notice to any third party under, (i) the articles of formation, operating
agreement or other organic documents of the Buyer or OMGI, as the case may be,
(ii) any contract, lease, sublease, license, sublicense, franchise, Permit,
indenture, agreement, instrument of Indebtedness, Encumbrance, or other
arrangement to which the Buyer (or OMGI, as the case may be) or any of the
Buyer’s (or OMGI’s, as the case may be) respective properties or assets is
bound or affected, or (iii) any law, statute, Environmental Law, rule,
regulation, order, judgment, decree, stipulation, injunction, charge or other
restriction, to which the Buyer (or OMGI, as the case may be) or any of the
Buyer’s (or OMGI’s, as the case may be) respective properties or assets is bound
or affected.
5.4
Broker’s Fees . Buyer and OMGI have
no liability or obligation to pay any fees or commissions to any broker, finder,
or agent with respect to the transactions contemplated by this Agreement for
which Seller or Shareholder could become liable or
obligated.
5.5
Governmental Consent . Except as
set forth on Schedule 5.5 , no approval, authorization, consent or other
action by, or filing with, any governmental authority, administrative agency,
court or other party is necessary for Buyer’s or OMGI’s, as the case may be,
execution and delivery of this Agreement or performance of its obligations
hereunder or the consummation of the transactions contemplated
hereby.
6.1
Deliveries by Seller at the
Closing . At the Closing, simultaneously with the deliveries by Buyer
specified in Section 6.2 below, Seller is delivering or causing to be delivered
to Buyer the following:
(i)
(a) A certified copy of the resolutions by which the corporate
action on the part of Seller and Shareholder necessary to approve this
Agreement, and the transactions contemplated hereby were taken, and (b) an
incumbency certificate signed by a duly authorized officer of Seller certifying
the signature and office of each officer executing this Agreement or any other
agreement, certificate or other instrument executed pursuant
hereto;
(ii)
An Assignment and Assumption Agreement in the form attached hereto
as Exhibit A , executed by Seller;
(iii)
A Xxxx of Sale in the form attached hereto as Exhibit B , and Trademarks and Copyrights Assignment in the
form attached hereto as Exhibit E , each executed by
Seller;
(iv) A Consulting
Agreement between the Buyer and Xxxxx Xxxxx, in the form of Exhibit C hereto, executed by Shareholder;
(v) Copies of all
consents, notices and authorizations referenced in this Agreement (to the extent
available; all not available shall be provided post-Closing, in each case
promptly after being obtained);
(vi)
Certificates of Insurance naming Buyer and its affiliates as
additional insureds under all of Seller’s insurance policies (other
than worker’s compensation);
(vii)
A mutually agreed Allocation of Purchase Price, attached hereto as
Exhibit F ; and
(viii)
Such other documents or instruments as Buyer reasonably requests in
order to effect the transactions contemplated hereby in accordance with the
terms and conditions of this Agreement.
6.2
Deliveries by Buyer at the
Closing . At the Closing, simultaneously with the deliveries by Seller
specified in Section 6.1 above, Buyer is delivering or causing to be delivered
to Seller the following:
(i) The Closing Payment
(by wire transfer to account(s) specified by Seller);
(ii) A certified copy of the
text of the resolutions by which the corporate action on the part of Buyer
necessary to approve this Agreement were taken and (b) an incumbency certificate
signed by a duly authorized officer of Buyer certifying the signature and office
of each officer executing this Agreement or any other agreement, certificate or
other instrument executed pursuant hereto;
(iii) An Assignment and Assumption
Agreement in the form attached hereto as Exhibit
A , executed by Buyer; and
(iv)
A Consulting Agreement in the form attached
hereto as Exhibit C , executed by Buyer and OMGI, and
a mutually agreed Allocation of Purchase Price, attached hereto as Exhibit
F ..
(v) Certificates of Insurance naming
Seller and Shareholder as additional insureds under all of Buyer’s insurance
policies (other than worker’s compensation); and
(vii)
Such other documents or instruments as Seller or Shareholder
reasonably requests in order to effect the transactions contemplated hereby in
accordance with the terms and conditions of this Agreement.
6.3
Deliveries after Closing .
Immediately upon the Closing, Seller will file amendments to Seller's articles
of incorporation (and other filed organic documents) changing Seller’s name to
new names which do not have the words “Subaqueous Services”, “Subaqueous
Services, Inc.,” “Subaqueous,” “SSI,” or any derivations thereof, the stylized
“S,”or any other words indicating that Seller may be involved in the Business
(as conducted before of after the Closing Date) or otherwise indicating the
Seller is continuing in the Business.
7.1
Indemnification by Seller and
Shareholder. In addition to any rights or remedies Buyer or its
affiliates may otherwise have at law or in equity, subject to Section 7.2,
Seller and Shareholder jointly and severally hereby release and discharge and
shall indemnify, defend and hold harmless Buyer and its affiliates, the
directors, officers, employees, controlling persons, lenders, insurers, agents
and representatives of Buyer or of any of Buyer’s affiliates, and the
respective successors and assigns of any of the foregoing (the “Buyer
Covered Persons”) from and against any and all Claims, Environmental Claims and
Losses constituting, arising out of, relating to, or attributable to (i) any
Excluded Liability; (ii) any Excluded Asset; (iii) any breach of any
representation or warranty of Seller or any Shareholder set forth in this
Agreement; (iv) any breach of any covenant or agreement of Seller or Shareholder
set forth in this Agreement; (v) any act, omission or event occurring, or any
condition or circumstance existing, prior to the Closing Date (regardless of
whether it continues after the Closing Date), or any other condition,
circumstance or event attributable to any act, omission or event prior to the
Closing Date (regardless of whether it continues after the Closing Date),
including, without limitation, any Claims, Environmental Claims, Taxes, Working
Capital Liabilities or Losses disclosed on any Schedule hereto, but excluding
Assumed Liabilities; or (vi) any Employee Benefit Plan of Seller or any
employment or similar agreement to which Seller is a party; provided, however, that
Seller’s and Shareholder’s indemnification obligations under this Section 7.1
shall not apply to any Claims, Environmental Claims or Losses arising from, out
of or in any manner connected with any Claims, Environmental Claims or Losses
for which any Seller Covered Person may be entitled to indemnity pursuant to
Section 7.3 below.
7.2
Certain Limits on Indemnification by Seller;
Offset . The obligations set forth in Section 7.1 above are subject to
the following limitations:
7.2.1 Certain Limitations . With respect to the
indemnification obligations under Section 7.1 (v) above only and only with
respect to Environmental Claims, the parties acknowledge and agree that such
obligations of Seller and Shareholder shall not extend to Environmental Claims
in respect of environmental conditions on or under the property leased under the
Hill Street Lease, or on or under property on which Transferred Projects are
being conducted as of the Closing Date, to the extent those conditions are (i)
attributable to the operations of (a) previous owners, operators or lessees of
any such property or (b) previous contractors, subcontractors or suppliers on
any such property, that are and were in all cases not affiliated with, did not
work for or with, and were not directly or indirectly retained by either Seller
or Shareholder, and (ii) are not attributable to the operations of Seller or
Shareholder. The Seller and Shareholder shall not be liable under Section 7.1
until the Buyer Covered Persons have first suffered, sustained or incurred
aggregate Claims, Environmental Claims and Losses relating to such matters in
excess of $25,000 in the aggregate, at which point Seller and Shareholder shall
be liable to indemnify the Buyer Covered Persons and hold them harmless from and
against such $25,000, and all other such Claims, Environmental Claims and Losses
in excess of the $25,000 basket.
7.2.2 Offset . To the extent any portion of the
Purchase Price remains unpaid, Seller’s and the Shareholder’ obligations and
liabilities under Section 7.1 shall be offset against such remaining Purchase
Price until it has been fully offset, after which time, Seller and the
Shareholder shall pay in cash to Buyer Covered Persons any additional amounts
they from time to time may be obligated to pay under Section
7.1.
7.3
Indemnification by Buyer . Subject to
Sections 7.1 and 7.4, Buyer and OMGI jointly and severally hereby releases and
discharges and shall indemnify, defend and hold harmless Seller and its
affiliates, directors, officers, employees, controlling persons, including the
Shareholder, lenders, insures, agents and representatives and their respective
successors and assigns (the “Seller Covered Persons”) from and against any
Claims, Environmental Claims and Losses constituting, arising out of, relating
to, or attributable to (i) any Assumed Liability, (ii) any breach of any
representation or warranty of Buyer set forth in this Agreement; and (iii)
any breach of any covenant of Buyer set forth in
this Agreement; provided,
however, that Buyer’s and OMGI’s indemnification obligations under this
Section 7.3 shall not apply to any Claims, Environmental Claims or Losses
arising from, out of or in any manner connected with any Claims,
Environmental Claims or Losses for which any Buyer Covered Person may be
entitled to indemnity pursuant to Section 7.1 above.
7.4 Certain Limits on Indemnification by Buyer . Buyer
and OMGI shall not be liable under Section 7.3 until the Seller Covered Persons
have first suffered, sustained or incurred aggregate Claims, Environmental
Claims, and Losses relating to such matters in excess of $25,000 in the
aggregate, at which point Buyer and OMGI shall be liable to indemnify the Seller
Covered Persons and hold them harmless from and against such $25,000, and all
other such Claims, Environmental Claims and Losses in excess of the $25,000
basket amount.
7.5 Matters Involving Third Parties . If any third
party (including, without limitation, any Taxing authority) shall make or assert
a Claim against any Party (the " Indemnified Party ")
with respect to any matter which may give rise to a claim for indemnification
against any other Party (the " Indemnifying Party ") under this
Article 7, then the Indemnified Party shall notify each Indemnifying Party
thereof promptly; provided, however, that no delay on the part of the
Indemnified Party in notifying any Indemnifying Party shall relieve the
Indemnifying Party from any liability or obligation under this Agreement unless
(and then solely to the extent) the Indemnifying Party is damaged or prejudiced
thereby. In the case of any such Claim pursuant to which only the recovery of a
sum of money is being sought and the Indemnifying Party (i) enters into an
agreement with the Indemnified Party (in form and substance reasonably
satisfactory to the Indemnified Party) pursuant to which the Indemnifying Party
agrees to be fully responsible (with no reservation of any rights other than the
right to be subrogated to the rights of the Indemnified Party) for all Losses
relating to such Claim and unconditionally guarantees the payment and
performance of any Loss which may arise with respect to such Claim or the facts
giving rise to such Claim for indemnification, and (ii) furnishes the
Indemnified Party with evidence that the Indemnifying Party, in the Indemnified
Party's reasonable judgment, is and will be able to satisfy any such Claim, the
Indemnifying Party may, by giving written notice to the Indemnified Party,
assume the defense thereof. In such case, (A) the Indemnifying Party will defend
the Indemnified Party against such matter with counsel of its choice
satisfactory to the Indemnified Party and (B) the Indemnified Party may retain
separate co-counsel at its sole cost and expense (except that the Indemnifying
Party will be responsible for the fees and expenses of any separate counsel to
the Indemnified Party incurred prior to the date upon which the Indemnifying
Party effectively assumes control of such defense). In the event that the
Indemnifying Party is precluded from assuming control of the defense of a Claim
pursuant to the terms of this Section 7.5, the Indemnifying Party may retain
separate co-counsel at its sole cost and expense to participate in such defense
and, in any event the Indemnified Party shall (i) provide the Indemnifying Party
with all material information requested by such party relating to the defense of
such Claim, (ii) confer with the Indemnifying Party as to the most
cost-effective manner in which to defend such Claim and (iii) use its reasonable
efforts to minimize the cost of defending such Claim. The Indemnified Party will
not consent to the entry of any judgment or enter into any settlement with
respect to such matter without the written consent of the Indemnifying Party
(not to be withheld unreasonably), and the Indemnifying Party will not consent
to the entry of any judgment or enter into any settlement with respect to such
matter without the written consent of the Indemnified Party (not to be withheld
unreasonably).
8.1
Tax Allocation . The Parties
have agreed upon the allocation of the Purchase
Price among the Assets using the allocation method required by Section 1060 of
the Code and such allocation is set forth in Exhibit
F hereto. The Parties agree to report the federal, state and
local tax consequences of the transactions contemplated herein in a manner
consistent with such allocation and to not take any position inconsistent with
such allocation in any tax return, refund claim, litigation, investigation or
otherwise.
8.2
Transfer Taxes . Any and all
transfer Taxes and fees imposed as a result of the transactions contemplated
hereby (which for clarity, the Parties acknowledge and agree do not include
income, capital gains or similar Taxes of Seller or Shareholder), including,
without limitation, fees payable in connection with “stamping” or other public
recordation or notification of documents or instruments, shall be paid in full
by Buyer. If applicable, Seller shall provide to Buyer such properly
completed resale exemption and similar certificates or instruments as are
necessary to claim available Tax exemptions under applicable
law.
8.3 Payroll Taxes . Seller
shall (and the Shareholder shall cause Seller to) make a clean cut-off of
payroll and payroll Tax reporting with respect to Transferred Employees, and
shall pay over to appropriate federal, state and local governmental or
quasi-governmental authorities those amounts of such Taxes respectively withheld
or required to be withheld for any and all periods ending on or prior to the
Closing Date. Seller also shall issue by the date(s) proscribed by applicable
law (including the Code) Forms W-2 for wages and salaries paid through the
Closing Date.
(a)
To the extent that any Assumed Contract, Permit or Environmental
Permit is not capable of being transferred by Seller to Buyer pursuant to this
Agreement without the consent of a third party (including a governmental
entity), and such consent is not obtained prior to Closing, or if such transfer
or attempted transfer would constitute a breach or a violation of any law,
nothing in this Agreement will constitute a transfer or an attempted transfer
thereof. In the event that any such consent is not obtained on or prior to the
Closing Date, Seller shall (i) provide to Buyer the benefits of the applicable
Assumed Contract, Permit or Environmental Permit, (ii) cooperate in any
reasonable and lawful arrangement designed to provide such benefits to Buyer,
and (iii) enforce at the request and expense of Buyer and for the account of
Buyer, any rights of Seller arising from any such Assumed Contract (including
the right to elect to terminate such Assumed Contract in accordance with the
terms thereof upon the request of Buyer). If any Permit or Environmental Permit
required for the operation of the Business or the ownership or use of the Assets
or the Real Property is not transferred to Buyer at Closing, Seller authorizes
(to the extent permitted by law) Buyer to operate under any such Permit until
the necessary consent to transfer or a new Permit or Environmental Permit is
obtained.
(b)
Without limiting
the generality of the foregoing: If at the Closing Date there are any required
consents to the assignment of any Assumed Contracts to Buyer, that have not yet
been obtained (or otherwise are not in full force and effect) as of the Closing
Date, in the case of each Assumed Contract as to which such consents were not
obtained (or otherwise are not in full force and effect), Seller shall continue
its reasonable efforts to obtain the consents. Following the Closing, the
Parties shall use their reasonable efforts, and cooperate with each other, to
obtain the consents relating to each such Assumed Contract as quickly as
practicable. Once any such consent has been obtained, the parties will enter an
Assignment and Assumption Agreement in form of Exhibit
A hereto with respect to each such Assumed Contract, with the date of
assignment and assumption thereof being the date the related consent to
assignment is obtained; and
(i) Until assigned to Buyer, Seller shall hold the rights in all such
Assumed Contracts in trust for Buyer, in order that the full value of the rights
and interests in all such Assumed Contracts may be realized by and for the
benefit of Buyer on a current basis. Seller shall, at the request and expense
and under the direction of Buyer, in the name of Seller or otherwise as Buyer
may specify, take all such reasonable action and do or cause to be done all such
reasonable things as are, in the reasonable opinion of Buyer, necessary or
proper in order that the obligations of Seller there under may be performed in
such manner that the value of such rights and interests is fully preserved and
inures to the benefit of Buyer, and that the collection of any monies due and
payable and to become due and payable to Buyer in and under the rights are
received by Buyer. Buyer shall use its reasonable efforts to assist Seller in
performing its obligations under this paragraph. Seller shall promptly pay over
to Buyer all monies collected by or paid to Seller in respect of every such
right with respect to such Assumed Contracts. Subject in all cases to the
provisions of this Section 8.4 and the other terms and conditions of this
Agreement, while Seller is holding such rights and interests in such Assumed
Contracts in trust for Buyer pending the receipt of the required consents, Buyer
shall act as a subcontractor to Seller in the performance of Assumed Liabilities
(only) under such Assumed Contracts; provided that the Parties understand and
agree that no terms or conditions shall be implied or deemed to apply by virtue
of such relationship, with the sole exception of the applicable terms and
conditions of this Agreement.
8.5 Post-Closing Assistance . In case at any time
after the Closing any further action is reasonably necessary or desirable to
carry out the purposes of this Agreement and to effect, consummate, confirm or
evidence the consummation of the transactions contemplated hereby, each of the
Parties will take such further action (including, without limitation, the
execution and delivery of such further instruments and documents) as any other
Party reasonably may request. Without limiting the
generality of the foregoing, Seller and Shareholder will cooperate with Buyer
and OMGI in the provision of any and all information requested by Buyer or OMGI
in connection with (i) the administration of this Agreement, or (ii) the filing
or provision of financial or other information with or to the federal Securities
and Exchange Commission or other authorities, and filings with any such
authority that contain any such information.
8.6.1 Information Concerning the
Parties, the Assets, the Business . After the Closing, Seller and the
Shareholder shall keep confidential and not disclose to any third party any and
all information regarding (i) Buyer, or any of its affiliates (including,
without limitation, the terms, conditions and existence of this Agreement and
the agreements referenced herein); (ii) the Business (both as conducted prior to
and after the Closing Date); or (iii) the Assets. The foregoing notwithstanding,
none of the provisions in this Section 8.6.1 shall apply to any information
which (i) becomes generally available to the public other than as a result of
any breach of this Section 8.6.1; or (ii) first becomes available to Seller or
Shareholder after the Closing Date on a non-confidential basis from a source
other than Buyer or any affiliates of Buyer (provided that, to the best of the
Knowledge of Seller or Shareholder, such source is not bound by a
confidentiality agreement with, or other legal or fiduciary obligation to, any
of Buyer or any of its affiliates). Moreover, these restrictions shall not apply
to Shareholder in the performance of his obligations under the Consulting
Services Agreement, in the form attached hereto as Exhibit C ,
provided that disclosure of any such information by Shareholder is necessary for
the performance of any such obligations, is made solely for that purpose, and is
not more expansive than necessary for the performance of such
obligation.
8.6.2 Notice of Compulsory
Disclosure . In the event Seller or Shareholder is required to
disclose any confidential information pursuant to applicable law, such Seller or
Shareholder shall promptly notify Buyer in writing, which notification shall
include the nature of the legal requirement and the extent of the required
disclosure, and shall cooperate with Buyer to preserve the confidentiality of
such information consistent with applicable law.
8.7 Tax Return Cooperation . Seller, the Shareholder,
OMGI and Buyer shall cooperate fully with each other and make available or cause
to be made available to each other in a timely fashion such Tax data, prior Tax
Returns and filings and other information as may be reasonably required for the
preparation by Buyer, OMGI, Seller or the Shareholder of any Tax Returns,
elections, consents or certificates required to be prepared and filed by any of
them and in connection with any audit or other examination by any Taxing
authority, or judicial or administrative proceeding relating to liability for
Taxes including, without limitation, sales taxes and sales tax audits.
Each of Seller, the Shareholder, OMGI and Buyer will retain and provide to the
other Parties all records and other information which may be relevant to any
such Tax Return, audit or examination, proceeding or determination, and will
each provide the other Parties with any final determination of any such audit or
examination, proceeding or determination that affects any amount required to be
shown on any Tax Return of any other Party for any period. Without
limiting the generality of the foregoing, Seller and the Shareholder will retain
copies of all Tax Returns, supporting work schedules and other records relating
to Tax periods or portions thereof ending prior to or on the Closing
Date.
8.8 Litigation Support . In the event and for so long
as any Party is actively contesting or defending against
any Claim in connection with (a) any transaction contemplated under this
Agreement or (b) any fact, situation, circumstance, status, condition, activity,
practice, plan, occurrence, event, incident, action, failure to act or
transaction on or prior to the Closing Date involving any Party, the other
Parties will cooperate with the contesting or defending Party and its counsel in
such contest or defense, make available its personnel, and provide such access
to its books and records as may be necessary in connection with the contest or
defense, at the sole cost and expense of the contesting or defending
party.
8.9 Books and Records . After the Closing Date, Buyer
shall give Seller and the Shareholder reasonable access to the Books and Records
and the opportunity to make copies thereof, at their expense, during normal
business hours for reasonable and lawful business purposes relating to
pre-Closing events or circumstances affecting Seller and the Shareholder and
pertaining to the Assets. Buyer shall keep the Books and Records safe and
in good order for a reasonable period after the Closing Date and, at their
expense, for such further periods as Seller or the Shareholder may reasonably
request in writing; provided, however, that Buyer may deliver any Books and
Records to Seller and the Shareholder at any time and shall have reasonable
access thereto.
8.10 Receivables; Certain Payables . If any monies or
other assets are received by Seller or the Shareholder to which Buyer is
entitled hereunder or that are included in the Assets, Seller or the Shareholder
shall hold such monies and assets so received in trust for Buyer and shall
account for and pay the same to Buyer within 15 days after
receipt. If any monies or other assets are
received by Buyer to which Seller is entitled hereunder or that are included in
Excluded Assets, Buyer shall hold such monies and assets so received in trust
for Seller and shall account for and pay the same to Seller within 15 days after
receipt. Further, if Buyer receives any invoices or similar instruments which
under the terms hereof are the responsibility of Seller to pay or discharge,
Buyer likewise shall hold and provide any such invoices or similar instruments
to Seller, and Seller shall pay all such items within terms. Likewise, if Seller
receives any invoice or similar instruments which under the terms hereof are the
responsibility of Buyer to pay or discharge, Seller shall hold and provide any
such invoices or similar instruments to Buyer, and Buyer shall pay all such
items within terms. Without limiting the generality hereof, (i) Buyer (in lieu
and satisfaction of any payment obligations of Buyer or OMGI under Section 3.2.4
above) shall promptly remit to Seller any payments it receives of retainage
amounts deducted from payments to Seller under any Assumed Contract prior to the
Closing Date; and (ii) Seller shall promptly remit to Buyer any payments it
receives of retainage amounts deducted from payments to Buyer under any Assumed
Contract on or after the Closing Date.
8.11 Non-competition . In
consideration of the mutual covenants and obligations set forth in this
Agreement, including, without limitations, the payment of $100,000 of the
Purchase Price:
8.11.1 Restrictions . For a period
of three (3) years beginning on the Closing Date, neither Seller nor
Shareholder shall (a) represent, act for, be employed by, engage in, carry
on, provide consulting services to (except as provided under the Consulting
Agreement, in the form attached hereto as Exhibit C ), or have a financial
interest in (directly or indirectly, individually, as a member of a partnership
or limited liability company, equity owner, stockholder, investor, owner,
officer, director, trustee, manager, employee, agent, representative, associate
or consultant), the Business (as conducted on and after the Closing Date) or any
other business which competes with any of the businesses or operations of OMGI
or of any of its subsidiaries or affiliates, including, without limitation, the
Buyer, (as such operations and businesses are generally described on Schedule
8.11.1 hereto) within or in respect to the States of Florida or the
Caribbean region (which for purposes of clarification includes, without
limitation, the Bahamas) during such three (3) year period; or (b) directly or
indirectly, whether as a principal, agent, officer, director, employee,
consultant, independent contractor or otherwise, alone, in association with or
on behalf of any other person, firm, corporation or other business organization,
(1) solicit, sell, call upon, advise, do or attempt to do business with or
otherwise contact for a business purpose any customer with respect to the
Business (as conducted on and after the Closing Date), or (2) (I) hire or
attempt to hire any employee of Buyer (after giving effect to the Closing) or
any of its subsidiaries or affiliates, (II) encourage any such employee to
terminate his/her employment with Buyer (after giving effect to the Closing) or
any of its subsidiaries or affiliates, or (III) solicit, encourage or induce any
customer of Buyer or of any of its affiliates to terminate, suspend, or other
modify its relationship with Buyer (after giving effect to the Closing) or any
of its subsidiaries or affiliates.
8.11.2 Reasonable
Limitations . Seller and Shareholder agree that, and acknowledge and
agree that the limitations set forth herein on their rights to compete and
otherwise are incident to the sale of a business and are reasonable and
necessary for the protection of Buyer and its affiliates. In this regard,
Seller and Shareholder specifically agree that the limitations as to period of
time and geographic area, as well as all other restrictions on its activities
specified herein, are reasonable and necessary for the protection of Buyer and
its affiliates and the value of the Assets purchased by Buyer under this
Agreement. Seller and Shareholder agree that, and acknowledge and agree that it
is the Parties' expressed contractual intent that, in the event that the
provisions of these provisions should ever be deemed to exceed the scope of
business, time or geographic limitations permitted by applicable law, such
provisions shall be and are hereby reformed to the maximum scope of business,
time or geographic limitations permitted by applicable law.
8.11.3 Extension . Any violation of the covenant not to compete
described in this Article 8 shall extend the time period thereof for a period of
time equal to the period of time during which such violation continues. In the
event Buyer or any of its affiliates is required to seek relief from such
violation in any court, board of arbitration or other tribunal, then the
covenant shall be extended for a period of time equal to the pendency of such
proceedings and any appeals thereof.
8.12 Access and Reasonable
Support. In consideration of the payment by Buyer to Seller of
$60,000 on the Closing Date, on and after the Closing Date, Seller and
Shareholder, at their sole cost and expense, shall provide reasonably sufficient
office space and support to Buyer and its employees, agents and representatives
for Buyer’s Orlando, FL transitional operations for the period from the Closing
Date until and including September 30, 2008. Such support shall include, without
limitation, access to office premises and all assets and facilities at such
premises (which shall include all such assets and facilities necessary or
appropriate for conduct of the Business, as currently conducted by Seller), and
to all relevant Seller personnel as of the Closing Date. In addition, Seller and
Shareholder shall provide all reasonable transitional support as Buyer may
reasonably request, including support services of any such
personnel.
9.1
Offer to hire . Buyer and Seller
acknowledge that, while Buyer has no obligation to make an offer of employment
to any of Seller’s employees, Buyer is making offers of employment to certain of
Seller’s employees (the “Employees”) with employment with Buyer effective as of
Closing Date. Seller and Stockholder shall
exercise reasonable efforts to insure that Employees, to whom Buyer makes
employment offers, accept employment with Buyer. Each Employee who accepts
Buyer’s offer of employment shall hereinafter be referred to as a “Transferred
Employee”.
9.2
Terms of Employment . Except as
herein expressly and specifically provided otherwise, the terms of each
Transferred Employee’s employment shall be as arranged between Buyer and such
Transferred Employee. Prior to any such employment with Buyer, Seller shall
release the Transferred Employee from any Employment Agreement with Seller, and
Seller shall be solely responsible for any and all payments, obligations,
liabilities, Claims and Losses as a result of the termination of employment with
Seller, or otherwise with respect to any such Transferred Employee.
9.3
Severance . With respect to Employees who
are not offered employment by Buyer, and with respect to Transferred Employees,
if applicable, Seller shall be solely responsible for severance pay and similar
costs and expenses in the event any of them are severed, and all other payments,
obligations, liabilities, Losses and Claims.
9.4
Health and Welfare Benefits .
Seller and/or Shareholder shall provide all notices and fulfill all obligations,
if any, under Section 4980B(f) of the Code with respect to the Transferred
Employees. At Buyer’s request, and only to the extent permitted by applicable
law, Seller and/or Shareholder shall deliver to Buyer (and if requested) to
Buyer’s present or proposed insurance carriers or third-party administrators, on
a census basis, as soon as practicable after identification of Transferred
Employees, information with respect to all health, accident, workers’
compensation, disability and related claims filed by the Transferred Employees
(including, without limitation, information regarding the total number of claims
filed by, the total amount of benefits claimed by, and the total amount of
benefits paid to such persons), to the extent requested in the case of any such
carriers or administrators. At Buyer’s request, and only to the extent permitted
by applicable law, Seller and/or Shareholder shall deliver to Buyer (and if
requested) to Buyer’s health insurance carriers or third-party administrators,
on a census basis, to the extent requested in the case of any such carriers or
administrators, an update of such information through the Closing Date, as soon
as practicable but no later than 15 days after the Closing Date. Such
information, which may be provided directly from Seller’s computer database,
shall be satisfactory in form and substance to such carriers and administrators.
Effective on the Closing Date, Buyer shall provide the Transferred Employees
with health and welfare benefits substantially equivalent to those provided to
similarly situated current Buyer (or affiliate) employees, subject, however, to
eligibility requirements under plans or policies of Buyer or its affiliates (it
being understood that Transferred Employees shall be given credit for service
accumulated by any such Transferred Employee with Seller for purposes of
eligibility, but for not other purposes); provided, however , that Buyer
reserves the right to modify or terminate such benefits from time to time after
the Closing Date. Such Transferred Employees shall (subject to eligibility
requirements) participate under Buyer’s health and welfare benefit plans as of
the Closing Date, and neither Buyer nor OMGI shall be responsible for any
hospitalization, medical, survivor benefits, life insurance, or disability
Claims (or other Claims or benefits) based upon medical or dental services
rendered and disability, life insurance and survivor benefits (or otherwise)
which became due and owing while such Transferred Employee was employed by the
Seller. In no event shall Buyer or OMGI be required to provide post-retirement
medical or life insurance benefits to Transferred
Employees.
9.5 Seller’s Employee Benefit Plans . The Parties agree that, effective as of the
Closing, Seller shall continue its exclusive sponsorship of all Employee Benefit
Plans of Seller (if any), including, without limitation, any “401(k) Plan”, and
Seller and/or Shareholder shall be solely responsible and liable for all
obligations, responsibilities, Claims and Losses related to any such Employee
Benefit Plan.
9.6 Wage Reporting . As applicable, the
Parties shall comply with Section 4 of the Revenue Procedure 84-77, 19&4-2
C.B. 753. Seller and/or
Shareholder shall furnish (or cause to be furnished) to each Transferred
Employee in accordance with Section 4 of the Revenue Procedure a Treasury Form
W-2 for 2007 and 2008 (to date) for the salaries and wages paid by Seller, no
later than January 31, 2009. Buyer and/or OMGI shall furnish (or cause to
be furnished) to each Transferred Employee in accordance with Section 4 of such
Revenue Procedure a Treasury Form W-2 for 2008 (from the Closing Date) for the
salaries and wages paid by Buyer. Buyer and/or OMGI shall file (or cause to be
filed) appropriate Treasury Forms W-2 and W-3 covering the Transferred
Employee(s) with the Social Security Administration for salaries and wages paid
and amounts withheld by Buyer during 2008 (from the Closing Date).
9.7 WARN
Act . To the extent, if any, that the provisions of the WARN Act are
triggered as a result of any cessation of employment with Seller, Seller and/or
Shareholder shall be solely responsible for discharging any and all obligations
or duties under or with respect to the WARN Act.
9.8 Employee Rights . Nothing contained herein (i)
shall confer upon any former, current or future employee of Seller, Buyer or
OMGI or any legal representative or beneficiary thereof any rights or remedies,
including, without limitation, any right to employment or continued employment
of any nature, for any specified period, or (ii) shall cause the employment
status of any former, present or future employee of Buyer or OMGI to be other
than terminable at will.
10.1 Survival . The representations and
warranties of the Parties contained in Articles 4 and 5 shall survive through
the second (2nd)
anniversary date of the Closing Date (the " Survival Period "); provided
that the representations and warranties set forth in Sections 4.11 and 4.20
shall have no limitation on survival. The Parties respective representations and
warranties there under shall expire as of the expiration of the applicable
Survival Period and no claim for indemnification may thereafter be made with
respect to any breach of any representation or warranty, the applicable Survival
Period of which shall have expired, except to the extent that written notice of
such breach shall have been given to the Party against which such claim is
asserted on or before the date of such expiration. The covenants and agreements
of the Parties herein and in other documents and instruments executed and
delivered in connection with the closing of the transactions contemplated hereby
shall survive (subject to the provisions of such covenants and agreements) for
the maximum period permitted by law.
ARTICLE 11
PERFORMANCE AND PAYMENT BONDS; INSURANCE
11.1 Assignment or
Transfer . All payment, performance, bid and other bonds
currently in place with respect to any Assumed Contract for work being performed
or services being provided to any customer or client (collectively, “Bonds”)
shall remain in place unmodified except as provided below, and except that
Buyer, as of the Closing Date, shall be a principal with respect to the
Bonds.
11.2 Bond Indemnity
Obligations . Buyer and OMGI shall assume all indemnity obligations
with respect to the Bonds but only to the extent that the matter giving rise to
any such obligation is attributable to Buyer’s or OMGI’s acts or omissions, or
events, conditions or circumstances first and exclusively arising or existing
after the Closing Date. Seller and Shareholder shall retain all indemnity
obligations with respect to the Bonds to the extent that the matter giving rise
to any such obligation is attributable to Seller’s acts or omissions, or events,
conditions or circumstances arising or existing on or before the Closing
Date.
11.3. Cooperative Efforts .
All parties shall exercise reasonable efforts through their respective agents to
secure arrangements with their sureties to effect the agreements in Sections
11.1 and 11.2 above.
11.4 Additional
Insureds . As of the Closing Date, (i) Buyer shall name Seller and
Shareholder as additional insureds under Buyer’s insurance policies, with the
exception of workers’ compensation policies; and (ii) Seller shall name Buyer
and all of its affiliates as additional insureds under Seller’s insurance
policies, with the exception of workers’ compensation policies. Neither party’s
insurance coverage shall be primary or deemed to be primary, and neither party
shall be required to secure waivers of subrogation rights.
ARTICLE 12
Miscellaneous
12.1 Press Releases and
Announcements . All interviews, press releases and other public
announcements and all announcements relating to the transactions contemplated
hereby (the "Announcements") shall be prepared by Buyer, with Buyer having full
editorial control over such releases and announcements;
provided, however, that the Shareholder shall be consulted with respect to all
such Announcements and all reasonable comments provided by the Shareholder shall
be considered.
12.2 Third Party
Beneficiaries . Except as expressly provided in Article 7 (with
respect to certain other parties who or that are entitled to be indemnified
there under), this Agreement shall not confer any rights or remedies upon any
Person other than the Parties and their respective successors and permitted
assigns.
12.3 Entire
Agreement . This Agreement and the agreements executed pursuant
hereto constitute the entire agreement between the Parties and supersedes any
prior understandings, agreements, or representations by or between the Parties,
written or oral, that may have related in any way to the subject matter hereof,
excluding the Confidentiality Agreement (which shall terminate at Closing with
respect to prospective obligations there under).
12.4 Succession and
Assignment . This Agreement shall be binding upon and inure to
the benefit of the Parties named herein and their respective heirs, successors
and permitted assigns. No Party may assign either this Agreement or any of its
rights, interests, or obligations hereunder (whether by contract, consent,
merger, consolidation, operation of law or otherwise) without the prior written
consent and approval of the other Party or Parties hereto.
12.5 Counterparts . This Agreement and all other agreements,
documents and instruments executed in connection herewith may be executed in two
or more counterparts (including by telecopied or emailed signature pages), each
of which shall be deemed an original but all of which together will constitute
one and the same instrument.
12.6 Headings . The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.
12.7 Notices . All
notices, requests, demands, claims, and other communications hereunder will be
in writing. Any notice, request, demand, claim, or other communication hereunder
shall be deemed duly given (i) when delivered, if personally delivered, (ii)
when receipt is electronically confirmed, if faxed (with hard copy to follow via
first class mail, postage prepaid), or (iii) one day after deposit with a
reputable overnight courier, in each case addressed to the intended recipient as
set forth below:
If to Seller and/or
Shareholder:
Hawg Enterprises, LLC
390 X.
Xxxxxx Xxx., Xxxxx 0000,
Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxx, President
Telephone:
000.000.0000
Facsimile:
000.000.0000
Email: xxxxxx@xxxxxxxxxxx.xxx
With a copy to (which shall not constitute
notice) :
Xxxxxxx Law Firm
390 X.
Xxxxxx Xxx., Xxxxx 0000,
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx
Telephone:
000-000-0000
Facsimile:
000-000-0000
Email: xxxxxxxxx@xxxxx.xxx
If to the Buyer and/or
OMGI :
OMGI SUB, LLC12550 Fuxxx Xxxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxxx
CEO
Telephone: 000-000-0000
Facsimile: 000-000-0000
Email: xxxxxxxx@xxxxxxxxxxxxxxxx.xxx
With copy to (which shall not constitute
notice) :
OMGI SUB, LLC
12000 Xxxxx Xxxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxx Xxxxx
V.P.
and General Counsel
Telephone: 000-000-0000
Facsimile: 000-000-0000
Email: xxxxxx@xxxxxxxxxxxxxxxx.xxx
12.8
Governing Law . This Agreement shall be
governed by and construed in accordance with the domestic laws of the State of
Florida, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Florida or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
Florida. Seller, Shareholder, Buyer, and OMGI hereby
voluntarily consent to the jurisdiction of federal and state courts sitting in
Hillsborough County, Florida, but solely with respect to litigation of disputes
arising out of or relating to this Agreement, and, solely with respect to such
litigation, agree that exclusive and proper venue for such litigation shall be
in Hillsborough County, Florida
12.9
Amendments and Waivers . No amendment of
any provision of this Agreement shall be valid unless the same shall be in
writing and signed by each Party. No waiver by any Party of any default,
misrepresentation, or breach of warranty or covenant hereunder shall be
effective unless reduced to writing and signed by the waiving Party for such
purpose; and no such waiver shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.
12.10 Severability . If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the Parties agree that the court making the determination of
invalidity or unenforceability shall have the power to reduce the scope,
duration, or area of the term or provision, to delete specific words or phrases,
or to replace any invalid or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified after the expiration of the time within
which the judgment may be appealed.
12.11 Expenses; Transfer Taxes . Except as set forth
herein, each Party will bear his, hers or its own costs and expenses (including
legal, accounting and broker fees and expenses) incurred in connection with this
Agreement and the transactions contemplated hereby. Notwithstanding the
foregoing, all documentary, sales, use, registration and other transfer taxes
(including, but not limited to, all applicable real estate transfer, “stamp” or
stock transfer Taxes) and fees incurred in connection with the transactions
contemplated hereby shall be paid by Buyer (for purposes of clarity any and all
income, capital gains or similar Taxes of Seller of Shareholder are not included
in such transfer taxes). If applicable, Seller shall
provide to Buyer such properly completed resale exemption and similar
certificates or instruments as are necessary to claim available Tax exemptions
under applicable law.
12.12 Construction . The Parties have jointly
participated in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the Parties and no presumptions or burdens
of proof shall arise favoring any Party by virtue of the authorship of any of
the provisions of this Agreement. Nothing in the disclosure Schedules shall be
deemed adequate to disclose an exception to a representation or warranty made
herein unless the disclosure Schedule identifies the exception with reasonable
particularity and describes the relevant facts in reasonable detail.
12.13 Incorporation of Annexes, Exhibits and Schedules .
The Annexes, Exhibits and Schedules identified in this Agreement are
incorporated herein by reference and made a part hereof.
12.14 Certain
Remedies . Each of the Parties acknowledges and agrees that each
other Party would be damaged irreparably in the event any of the provisions of
this Agreement are not performed in accordance with their specific terms or
otherwise are breached. Accordingly, each of the Parties agrees that each other
Party shall be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions hereof, in addition to any other remedy to which it may
be entitled, at law or in equity. It is the
Parties' expressed contractual intent that the foregoing provisions be fully
enforceable in accordance with their terms, regardless of the enforceability of
any other provision of this Agreement with the same or similar
effect.
12.15 Business
Days . If any time period for giving notice or taking action
hereunder expires on a day which is a Saturday, Sunday or legal holiday, the
time period shall automatically be extended to the business day immediately
following such Saturday, Sunday or legal holiday.
12.16 Joint
and Several Liability . With respect to all agreements, covenants,
obligations, representations, warranties, and commitments under and the
provisions of this Agreement (including the performance thereof) (i) of or
respecting Seller and/or Shareholder, Seller and Shareholder shall in each case
be jointly and severally liable under this Agreement; and (ii) of or respecting
Buyer and/or OMGI, Buyer and OMGI shall in each case be jointly and severally
liable under this Agreement, provided that the Parties acknowledge and agree
that the Assets are being purchased by and sold and transferred to Buyer,
only.
IN WITNESS WHEREOF, the
Parties hereto have duly executed and delivered this Agreement as of the date
first above written.
OMGI SUB,
LLC
By: /s/ Xxxx
Xxxxxxxx
Name: Xxxx Xxxxxxxx
Title: Vice President
Orion Marine Group,
Inc.
By: /s/ Xxxxxxx
Xxxxxxx
Name: Xxxxxxx Xxxxxxx
Title: President and CEO
Subaqueous Services,
Inc.
By: /s/ Xxxxx
Xxxxx
Name: Xxxxx Xxxxx
Title: President
Xxxxx Xxxxx, individually and
as the sole holder of stock of Seller
/s/LanceYoung
ANNEX I
CERTAIN
DEFINITIONS
“ Assets ” means all of Seller’s right, title and interest
in and to all of the properties, assets, and rights of every nature, kind and
description, tangible and intangible whether real, personal or mixed, whether
accrued, contingent or otherwise and whether now existing or hereafter acquired,
used or held for use in connection with or relating to the Business, including,
without limitation, the following, but not including the Excluded
Assets:
(a)
all equipment, vessels, machinery, and all appurtenances, spare
parts, and other related tangible personal property, and all inventory,
work-in-process, supplies and materials used or held for use or to be used or
held for use in connection with the operations of any of the foregoing,
including, without limitation, in each case any and all such items at any Seller
site (including, without limitations, work sites), in storage, currently on
order, held by vendors or subcontractors, or in transit;
(b)
all contracts, purchase orders, agreements and similar arrangements
(including, without limitation, subcontracts and material purchase orders, and
similar arrangements) for (and all other rights, benefits and interests with
respect to) any and all jobs or projects in process or awarded as of the Closing
Date, and all outstanding bids, offers and solicitations made by or to
Seller (including, without limitation, all “low bidder” and quotation rights),
and other similar arrangements, and other contracts and agreements, leases,
purchase orders, commitments, and other similar arrangements (including, without
limitation, contractor licensure and “qualifier” agreements or arrangements), in
each case as set forth (or, pursuant to Section 4.14 hereof, as should be set
forth) on Schedule 4.14-1 (the “ Assumed
Contracts ”) (including in each case all related or associated
benefits, interests, rights and remedies), and all inventory, work-in-process,
supplies and materials used or held for use or to be used or held for use in
connection with any thereof, including, without limitation, in each case any and
all such items on the project sites, in storage, currently on order, held by
vendors or subcontractors, or in transit;
(c)
leasehold and other interests in real property;
(d)
furniture, computers, servers, software, computer programs, source
codes, telephones, fax machines, other communications equipment, fixtures,
leasehold improvements, vehicles, fixed assets, and other tangible personal
property;
(e)
intangible property, including, without limitation, goodwill, the
names “Subaqueous Services, Inc.”, “Subaqueous Services,” “Subaqueous,” “SSI,”
and any other variations thereof, the stylized “S” trade and/or service xxxx,
all Internet domain names and site addresses related to the Business, all rights
of use and other rights with respect thereto, all sales, marketing and
promotional materials, including, without limitation, all photographs (whether
for previously completed or in process projects), and all other intangible
property, Intellectual Property, goodwill associated therewith, licenses and
sublicenses granted or obtained with respect thereto and rights there under,
remedies with respect to infringements thereof, and rights to protection of
interests therein under the laws of all jurisdictions;
(f)
all other contractual and other rights and remedies related to the
Assets or the ownership or operation thereof, or the conduct of the Business,
including, without limitation, any indemnity or other rights under any asset or
stock purchase or sale or similar agreements, warranty rights and remedies,
rights to have materials delivered or services performed, non-competition and
confidentiality rights and remedies, including all such rights and remedies
pursuant to any employment agreement or arrangement, and any licensure or
similar rights;
(g)
to the extent related to any Assumed Liability or any of the
Assets, all Claims (in favor of or for the benefit of Seller or the Business),
refunds, credits, rights of recovery, rights of set off and rights of recoupment
of any kind, including, without limitations, all retainage held by the owner
with respect to the Goodby’s Creek project/Assumed Contract;
(h)
to the extent legally transferable, all Permits and Environmental
Permits related to the Business, including, without limitation, any and all
“contractor’s licenses”;
(i)
rights to receive payments, mail and other communications addressed
to Seller to the extent such items relate to the Business;
(j)
Books and Records concerning or related to the Assets (or ownership
or operation thereof) or the Assumed Liabilities;
(k)
all rights under express or implied warranties or otherwise from
the providers of goods or services in connection with the Assets or the
Business; and
(l)
pollution control or emissions credits, xxxxxx or inchoate; and
other property or assets (tangible or intangible) owned, licensed or leased by
Seller or in which Seller has an interest or possesses as of the Closing Date
that are used in or held for use in the Business.
“ Assumed Liabilities ” means and is
limited to (i) those obligations and liabilities under Assumed Contracts, to the
extent arising after and attributable to circumstances arising after the Closing
Date (and excluding, without limitation, obligations and liabilities arising by
reason of any breach or alleged breach by Seller or based on events, occurrences
or circumstances prior to or on the Closing Date, regardless of when any such
liability is asserted); and (ii) those obligations and liabilities under Permits
and Environmental Permits related to the Business, to the extent assigned to and
assumed by Buyer, and only to the extent arising after and attributable to
circumstances arising after the Closing Date (and excluding, without limitation,
obligations and liabilities arising by reason of any non-compliance,
alleged non-compliance, breach or alleged breach by Seller or based on
events, occurrences or circumstances on or prior to the Closing Date, regardless
of when any such liability or obligation is asserted).
“ Books and Records ” means all books, records, ledgers,
files, documents, correspondence, lists (including subcontractor, supplier and
customer), drawings, specifications, advertising, marketing and promotional
materials, studies, reports, plans and other printed or written materials owned
by Seller or related to the Business (including, without limitation, electronic,
magnetic or computerized storage media versions of the foregoing).
“ Business ” means the ownership and operation of the
Assets and the Excluded Assets, and the business, operations and activities of
Seller, it predecessors in interest, or of the Assets, as conducted on and prior
to the Closing Date, and includes, without limitation, the provision of marine
construction services, dredging services, environmental enhancement services,
beach renourishment services, and all operations, services and activities
related or incidental to any of the foregoing.
“ Capitalized Lease ” means any lease, the obligation for
rentals with respect to which is required to be capitalized on a balance sheet
of the lessee in accordance with GAAP.
“ Claim ” means any claim, allegation, allegation of Loss,
demand, Encumbrance, notice of violation, Environmental Claim, lawsuit, legal
proceeding, administrative or regulatory proceeding, order, consent decree or
agreement, settlement agreement or judgment, complaint, action, demand,
assessment, litigation, hearing, investigation, notice, judgment, order, decree
and settlements relating thereto, in each case, whether known or unknown,
whether absolute or contingent, whether liquidated or unliquidated, and whether
due or to become due, whether accrued or unaccrued, or otherwise..
“ Code ” means the Internal Revenue Code of 1986, as
amended, and all rules and regulations promulgated there under.
“ Confidentiality Agreement ” means that certain
Confidentiality and Nondisclosure Agreement dated as August 13, 2007, between
Seller and Orion Marine Group, Inc.
“ Controlled Group ” means, with respect to the Seller,
any other entity, trade or business that is a member of a group described in
Section 414(b), (c), (m) or (o) of the Code that includes the Seller.
“ Employee
Benefit Plan ” means any Employee Pension Benefit Plan, Employee
Welfare Benefit Plan, “employee benefit plan” (within the meaning of ERISA Sec.
3(3)), or any compensation plan, incentive plan (including, without limitation,
stock incentive plans), benefit plan, stock awards plan, phantom stock plan,
stock appreciation rights plan, severance plan or agreement, bonus plans or
fringe benefit plan or any other similar plan, program, policy, agreement or
commitment.
“ Employee
Pension Benefit Plan ” has the meaning set forth in ERISA Sec.
3(2).
“ Employee
Welfare Benefit Plan ” has the meaning set forth in ERISA Sec.
3(1).
“ Encumbrance ” means any mortgage, pledge, security
interest, encumbrance, charge, Claim, lien, Environmental Claim, or any other
interest, claim or contingency that may affect title, any leasehold interest,
value, ownership or operation of any property or asset, whether xxxxxx,
inchoate, fixed, contingent, liquidated, unliquidated, arising by operation of
law, statutory, common law, administrative, contractual or
otherwise.
“ Environmental Claim ” means any Claim, notice of
violation or non-compliance, notice of potential liability or responsibility, or
compliance schedule or plan under, issued pursuant to, arising from, related to
or connected with any Environmental Law, Environmental Permit or Hazardous
Material.
“ Environmental Law ” means any law, rule, regulation,
common law, term or condition contained in any Environmental Permit, order,
decree, directive, judgment, policy, settlement or consent agreement, or
compliance schedule or plan, of or issued by any governmental authority relating
to Hazardous Materials, health, safety, noise, nuisances, or protection,
pollution, restoration, remediation or clean-up of the environment or natural
resources.
“ Environmental Permit ” means any Permit (including,
without limitation, compliance plans and schedules), required by or issued
pursuant to any Environmental Law or Environmental Claim.
“ ERISA ” means the Employee Retirement Income Security
Act of 1974, as amended and all rules and regulations promulgated there
under.
“ Excluded
Assets ” means (i) the corporate charters, qualifications to conduct business
as a foreign corporation, arrangements with registered agents relating to
foreign qualifications, taxpayer and other identification numbers, seals, minute
books, stock transfer books, blank stock certificates and other documents
relating to the organization, maintenance and existence as a corporation of
Seller; (ii) as of the Closing Date, all accounts and notes receivable of Seller
or related to the Business; (iii) as of the Closing Date, pre-paid expenses,
cash, and cash equivalents; (iv) the Lease Agreement dated September 1, 2004,
between ACP Utah Orange Avenue, LLC, Lessor, and Seller, Tenant, and related
leasehold rights and interests (“Orange Avenue Lease”); (v) the Lease Agreement
dated January 1, 2007, between Hill Street, LLC, Lessor, and Seller, Tenant, for
the Jacksonville Yard/Office, and related leasehold rights and interests (“Hill
Street Lease”) (previously collectively defined herein as the “Lease
Agreements”); and (vi) the assets and properties specified on Schedule
A hereto.
“ Excluded
Liabilities ” means any and all liabilities and obligations of Seller or
otherwise related to the Business other than the Assumed Liabilities. “Excluded
Liabilities” include, but are not limited to, (i) any and all Indebtedness of
Seller or related to the Business; (ii) any and all Claims against or adverse to
Seller or the Business, or related to any period on or prior to the Closing
Date; (iii) any and all Losses of Seller or related to the Business, or
related to any period on or prior to the Closing Date; (iii) any and all Working
Capital Liabilities, including, without limitation, any and all accounts payable
of Seller or related to the Business; (iv) any and all Taxes of Seller or
related to the Business or related to any period on or prior to the Closing
Date; (v) any and all obligations, liabilities, Losses or Claims under or with
respect to the Orange Avenue Lease, the Hill Street Lease (previously
collectively defined herein as the “Lease Agreements”), or related rights,
interests or obligations; (vi) any and all obligations, liabilities, Losses, or
Claims related to any Employee Benefit Plan (existing or terminated, active,
frozen or suspended) of Seller (including, without limitation, Employee Benefit
Liabilities) or related to the Business or related to the employment of any
person by Seller or in connection with the Business, including, without
limitation, the termination of any such employment and any of the matters
referred to in Article 9 hereof, and further including, without limitations, any
and all obligations, responsibilities, liabilities, Losses, and Claims under or
related to the WARN Act; (vii) any and all Encumbrances or Indebtedness of
Seller, whether with respect to the Assets, related to the Business, or
otherwise; (viii) any and all obligations, liabilities, and Losses under or with
respect or related to any and all contracts, agreements and similar arrangements
other than the Assumed Contracts identified on Schedule 4.14-1 ,
including, without limitation, any employment agreements; and (ix) any and all
obligations, liabilities, costs, expenses, charges, assessments, losses, claims,
litigation, allegations, complaints and other Losses and Claims (against or
adverse to Seller or the Business) related in any way to the Seller, any
Excluded Asset or the Business or any period of time at or prior to the Closing
Date, including, without limitation, under or with respect to the Lease
Agreements.
“ GAAP ” means United States generally accepted accounting
principles as in effect on the Closing Date, including, without limitation, the
Percentage of Completion Method.
“ Hazardous
Materials ” means (i) any pollutant, contaminant or hazardous or toxic
substance, material, waste or chemical (including, without limitation,
substances and materials classified or categorized as any of the foregoing, or
included within the definitions of any of the foregoing, under or pursuant to
any Environmental Law); and (ii) oil, gas and other petroleum products,
materials or substances, other hydrocarbons, asbestos (whether friable or not),
radioactive materials, substances or products, solvents, paints,
chemicals, and related wastes.
“ Indebtedness ” means without duplication: (i) all
obligations of such Person for borrowed money (including, without limitation,
any indebtedness owed to the Shareholder) or which have been incurred as
purchase money or similar financing in connection with the acquisition of
property or assets, (ii) obligations secured by any Encumbrance or other charge
upon property or assets owned by such Person, even though such Person has not
assumed or become liable for the payment of such obligations, (iii) obligations
created or arising under any conditional sale or other title retention agreement
with respect to property or assets acquired by such Person, whether or not the
rights and remedies of the company, lender or lessor under such agreement in the
event of default are limited to repossession or sale of the property, (iv)
Capitalized Leases and Capitalized Lease obligations, and (v) Taxes.
“ Intellectual Property ” means any and all (i) patents,
patent applications, patent disclosures, and improvements, amendments or
additions thereto, (ii) trademarks, service marks, trade dress, logos, trade
names, copyrights and corporate names and registrations and applications for
registration of any thereof, whether registered, filed, common law, or
otherwise, (including, without limitation, the trade names “Subaqueous Sevices,
Inc.,” “Subaqueous Services,” “Subacqueous,” “SSI,” and any and all variations
thereof, (iii) computer software, programs, data and documentation, (iv) trade
secrets and confidential business information, including, without limitation,
ideas, formulas, compositions, inventions (whether patentable or unpatentable
and whether or not reduced to practice), know-how, manufacturing and production
processes and techniques, research and development information, (v) software
products in development, drawings, specifications, designs, plans, proposals,
technical data, copyrightable works, financial (excluding Employee Benefit
Plans), marketing, and business data, pricing and cost information, business and
marketing plans, and customer and supplier lists and information, and (vi)
copies and tangible embodiments of any thereof (in whatever form or
medium).
“ Knowledge ” means knowledge after due
inquiry (by any individual or on behalf of any entity, as the case may be),
which due inquiry includes, without limitation, review of all relevant
documents, materials, facts, circumstances, and conditions, and consultation
with all relevant persons, or, in the absence of all such due inquiry, the
knowledge that should be or should have been had after all such due
inquiry.
“ Loss ” means any damage, obligation, payment, cost,
expense, injury, charge, judgment, decree, penalty, fine, interest, or other
loss or liability (including, but not limited to, the cost and expense of
defending or prosecuting any and all Claims and settlements relating thereto,
expenses of preparation and investigation thereof and attorneys’, experts’,
consultants’ and accountants’ fees in connection therewith), whether known or
unknown, whether absolute or contingent, whether liquidated or unliquidated, and
whether due or to become due, whether accrued or unaccrued, or
otherwise.
“ Material
Adverse Change ” means any change, event, occurrence or circumstance
that individually or in the aggregate (taking into account all other such
changes, events or occurrences) has had, or would be reasonably likely to have,
a material adverse effect on the Assets or the value thereof, operations,
results of operations, financial condition, prospects, customers, customer base,
Assumed Contracts, suppliers, supplier base, labor relations, or employee
relations, of Seller or the Business or otherwise with respect to the Business,
as reasonably determined by Buyer.
“ Multi-Employer ” and “ Multi-Employer Plan ”
have the meanings set forth in Section 3 (37) of ERISA.
“ Ordinary
Course of Business ” means the ordinary course of business of the
Business consistent with prudent and commercially reasonable and appropriate
standards and practices (including, without limitation, GAAP), in all respects
of the Business (including with respect to quantity and frequency), and (where
the context so indicates) with a view to the conduct of the Business after the
Closing Date.
“ Percentage of Completion Method ” means the method of
revenue recognition on construction and similar contracts and projects whereby
revenue is measured by the percentage of contract/project costs incurred to date
to total estimated costs for such contract or project, as implemented in
accordance with AICPA Statement of Position (SOP) 81-1, Accounting for Performance of
Construction—Type and Certain Production—Type Contracts.
“ Permit ” means permits, licenses, registrations,
notifications, franchises, approvals, certificates, variances and other similar
rights or authorizations required by and obtained from governments or
governmental or quasi-governmental authorities (including, without limitation,
the Internal Revenue Service).
“ Person ” means an individual, a partnership, a
corporation, an association, a limited liability company, a joint stock company,
a trust, a joint venture, an unincorporated organization, a governmental entity
or any department, agency or political subdivision thereof or any other
entity.
“ Tax ”
or “ Taxes ” means any federal, state, local, or foreign income,
gross receipts, license, payroll, employment, excise, communications, severance,
stamp, occupation, premium, windfall profits, environmental (including, without
limitation, taxes under Code Sec. 59A), customs duties, capital stock,
franchise, profits, withholding, social security (or similar), unemployment,
disability, real property, personal property, sales, use, transaction, transfer,
registration, value added, alternative or add-on minimum, estimated, or other
tax, fee or similar charge of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not, and whether known or
unknown, whether absolute or contingent, whether liquidated or unliquidated, and
whether due or to become due, whether accrued or unaccrued, or
otherwise.
“ Tax
Return ” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.
“ Working Capital Liabilities ” means all (i) accounts
payable and all accrued expenses of Seller or related to the Business, (ii)
accrued Taxes of Seller or related to the Business, (iii) Seller Employee
Benefit Plan payments, payables, claims and obligations, (iv) payables or
commitments of Seller to Shareholder or to any of Seller’s or Shareholder’s
affiliates; and (v) accrued premiums for maintenance of coverage under all of
Seller’s insurance policies to and through the Closing Date, each as determined
in accordance with GAAP applied on a consistent basis .
Exhibit A
ASSIGNMENT AND ASSUMPTION
THIS ASSIGNMENT AND
ASSUMPTION (the "Assignment"), dated as of the Closing Date, is executed
by Subaqueous Services, Inc., a Florida corporation, Seller (the "Assignor"),
OMGI Sub, LLC, a Florida limited liability company, Buyer (the "Assignee"),
Shareholder, and OMGI.
W
I T N E S S E T H :
WHEREAS, pursuant
to the Asset Purchase Agreement dated as of February __, 2008, by and among the
Assignor, the Assignee, Shareholder and OMGI (the "Agreement"), (i) the Assignor
has transferred to the Assignee and the Assignee has acquired the Assumed
Contracts; and (ii) the Assignee has assumed the Assumed Liabilities, in each
case pursuant and subject to the terms, conditions and provisions of the
Agreement;
NOW, THEREFORE,
in consideration of the premises set forth herein and in the Agreement, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties hereto agree as follows:
1. All capitalized terms
used in this Assignment and not otherwise defined herein shall have the meanings
ascribed to them in the Agreement.
2. The Assignor hereby
(and pursuant to the Agreement) assigns and transfers to the Assignee all of its
rights, title, interest and benefits in, to and under the Assumed Contracts set
forth on Schedule 1 hereto, pursuant and subject to
the terms, conditions and provisions of the Agreement. The Assignee hereby
assumes (i) only those specific obligations of the Assignor under the Assumed
Contracts set forth on Schedule 1 hereto that are included within
Assumed Liabilities; and (ii) other Assumed Liabilities, in each case pursuant
and subject to the terms, conditions and provisions of the Agreement.
Notwithstanding anything in this Assignment or otherwise to the contrary, the
Assignee does not assume any responsibility, liability, obligation, or Loss, and
the Assignor shall retain and be responsible for all liabilities, obligations
and Losses with respect to, arising out of, or related to the Excluded
Liabilities.
3. The Parties and their
respective successors and assigns, hereby covenant and agree to sign, do,
execute, acknowledge and deliver or cause to be done, executed, acknowledged and
delivered, all such further acts, deeds, instruments, transfers and assurances
as may be reasonably requested by the in order to assign, transfer, grant,
convey and deliver to the Assignee the full and complete benefit of the Assumed
Contracts, and to effect the assumption of the Assumed Liabilities, in each case
pursuant and subject to the terms, conditions and provisions of the
Agreement.
4. This instrument is
executed and delivered pursuant to the terms and conditions of the Agreement,
including but not limited to, the representations and warranties made by the
Parties therein.
5. THIS ASSIGNMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FORIDA, WITHOUT
REFERENCE TO THE CHOICE OF LAW PRINCIPLES THEREOF.
IN WITNESS
WHEREOF, the parties have caused this Assignment to be duly executed and
delivered by their respective duly authorized officers as of and on the Closing
Date.
Subacqueous Services,
Inc.
By:
Xxxxx Xxxxx
President
Xxxxx Xxxxx,
individually and as Shareholder
______________________________________
Xxxxx Xxxxx
OMGI Sub,
LLC
By:
Name:
Title:
Orion Marine Group,
LLC
By:
Name:
Title:
1468438.2
Exhibit B
XXXX OF
SALE
Subacqueous Services, Inc., a
Florida corporation ("Seller"), for good and valuable consideration paid to it,
the receipt and sufficiency of which are hereby acknowledged, and
pursuant to the Asset Purchase Agreement dated February __, 2008 (the
"Agreement"), between Buyer and OMGI, on the one hand, and Seller and
Shareholder, on the other hand, and notwithstanding that the following property
may be conveyed by separate and specific transfer documents, by these presents
does sell, convey, assign, transfer and deliver, or will cause to be sold,
conveyed, assigned, transferred and delivered, to Buyer all of Seller's right,
title and interest in and to the Assets, TO HAVE AND TO HOLD such Assets, as a
going concern or otherwise, unto Buyer and its successors and assigns to and for
its or their use forever, other than the Excluded Assets, subject to and in
accordance with the terms of the Agreement.
All capitalized terms not
otherwise defined herein shall have the definitions given to such terms in the
Agreement.
In addition to and not in
limitation or modification of any of the Buyer’s Or OMGI’s rights, remedies,
benefits, and interests under or pursuant to the Agreement or at law or in
equity, Seller hereby constitutes and appoints Buyer, its successors and
assigns, Seller's true and lawful attorney and attorneys, with full power of
substitution, in Seller's name and stead, by, on behalf of and for the benefit
of Buyer, its successors and assigns, to demand and receive any and all of the
Assets transferred hereunder and to give receipts and release for and in respect
of the same, and any part thereof, and from time to time to institute and
prosecute in Seller's name, or otherwise, for the benefit of Buyer, its
successors and assigns, any and all proceedings at law, in equity or otherwise,
that Buyer, its successors or assigns, may deem proper for the collection or
reduction to possession of any of the Assets transferred hereunder or for the
collection and enforcement of any claim or right of any kind hereby (or pursuant
to the Agreement) sold, conveyed, assigned, transferred, and delivered, or
intended so to be, and to do all acts and the things in relation to the Assets
transferred hereunder that Buyer, its successors or assigns, shall deem
desirable, Seller hereby declaring that the foregoing powers are coupled with an
interest and are and shall be irrevocable by Seller in any manner or for any
reason whatsoever.
IN WITNESS WHEREOF, Seller has
caused this Xxxx of Sale to be duly executed and delivered to Buyer as of and on
the Closing Date.
Subacqueous Services,
Inc.
By:
Xxxxx Xxxxx
President
Exhibit
C
Consulting Agreement
This Consulting Agreement dated February ___, 2008(“Agreement”), is by
and between Xxxxx Xxxxx (“Consultant”), on the one hand, and OMGI SUB, LLC and
Orion Marine Group, Inc. (collectively, “Client”), and is entered into as part
of and incident to the transactions contemplated by that certain Asset Purchase
Agreement of even date herewith between Client, on the one hand, and Consultant
and Subaqueous Services, Inc.(“SSI”), on the other hand (“APA”). Certain
capitalized terms as used herein shall have the meanings assigned to such terms
in the APA.
Whereas, in order
to provide for an efficacious transition with respect to the transfer and future
ownership and operation of the Assets purchased by Client from SSI pursuant to
the APA, and in order to provide for the future success of the related business,
Client desires that Consultant provide certain consulting and related services
as set forth herein; and
Whereas,
Consultant is willing to provide such consulting services as an
independent contractor in accordance with and subject to the terms and
conditions of this Agreement;
Now, Therefore,
in consideration of the mutual covenants set forth herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
1. Consulting Services. At Client’s request, from time to
time, during the term of this Agreement, Consultant shall provide consulting
services to Client related to the operation of the Assets and the business
related thereto, business development activities, and other similar matters. In
addition, Consultant will provide other consulting services with respect to
particular projects identified by Client at Client’s direction. The particular
nature and scope of services will be agreed upon form time to time by the
parties. In no event, however, shall Consultant be expected to devote more than
twenty (20) hours a week to the provision of services hereunder during the term
of this Agreement. In addition, as provided in Section 8.12 of the APA,
Consultant shall and shall cause SSI to provide, at Consultant’s and/or SSI’s
sole expense, the access and support services referenced therein, in
consideration of which, as also provided in Section 8.12, Client shall pay to
SSI on the Closing Date the sum of $60,000.
2. Compensation . As compensation for such services, during
the term of this Agreement, Client shall pay to Consultant the amount of
$150,000 per year, with such payments being made in equal monthly installments
of $12,500.00 at the end of each month during the term of this Agreement;
provided that the parties acknowledge and agree that if this Agreement is
terminated as provided in Section 6 below, Client’s obligation to compensate
Consultant shall be only for that period during which the Agreement is in
effect. In addition, Client shall reimburse and/or pay for all reasonable and
necessary business expenses of Consultant incurred in connection with
Consultant’s provision of services under this Agreement, as provided for and to
the extent consistent with Client’s internal policies. For clarity, such
reimbursable expenses do not include those incurred by Consultant and/or SSI in
connection with the access and support services referenced in Section 1 above
and in Section 8.12 of the APA.
3. Service Standards . Consultant shall perform all such
services with all reasonable diligence and in the manner and pursuant to the
standards of a highly experienced professional with significant background and
experience in the conduct of business generally, and particularly in the conduct
of the business related to the ownership and operation of the
Assets.
4. Nature of Relationship . At all times during the term of
this Agreement, Consultant shall provide services to Client solely as an
independent contractor. Client shall specify the nature and scope of services to
be provided from time to time and may provide general direction with respect
thereto; however, Consultant shall be solely responsible for the means and
manner of performing the services and any work product associated therewith,
subject of course to the Service Standards set forth above and Client’s
oversight. In no event shall Consultant act as or be an agent of Client or any
affiliate of Client, and Consultant shall not hold himself out as such.
Consultant shall have no authority to bind the Client or any of its affiliates
to any contract, agreement, liability or obligation whatsoever. It is the
parties’ intent that the sole relationship established by this Agreement is that
of independent contractor and client, and the parties expressly do not intend
hereby or otherwise to enter into any other arrangement, including, without
limitation, an employment or agency relationship, joint venture, or
partnership.
5. Certain Restrictions . In the performance of services
pursuant to this Agreement, Consultant acknowledges and agrees that Consultant
is bound by and subject to the confidentiality and non-competition provisions of
the APA, Sections 8.6 and 8.11, which provisions are incorporated fully herein
by this reference.
6. Term and Termination . The term of this Agreement shall
commence on the date hereof and shall continue for a period of three (3) years;
provided that upon thirty (30) days prior written notice, either party may
terminate this Agreement at any time, and, at such time, except for the
Consultant’s obligations and restrictions referenced in Section 5 above, and the
Client’s obligations to pay the compensation and reasonable expenses referenced
in Section 2 through the effective date of termination, the parties hereto shall
have no further obligations hereunder.
7. Miscellaneous . This Agreement (i) shall be governed by
and construed in accordance with the laws of the State of Florida, regardless of
any contrary conflicts-of-law principles; (ii) shall be binding on and
enforceable against the parties hereto and their respective successors and
assigns (provided that, Consultant may not assign or delegate this Agreement or
any part hereof, or any services to be provided hereunder, without the prior
written consent of Client); (iii) constitutes the entire agreement of the
parties with respect to the particular subject of this Agreement, but is subject
to and does not amend or modify in any way, the APA; (iv) shall be construed and
interpreted to the greatest possible extent to be enforceable precisely in
accordance with its provisions; provided that if any court of competent
jurisdiction of arbitration panel declares this Agreement or any part hereof to
be invalid or unenforceable in any part or respect, it is the expressed intent
of the parties hereto that the Agreement be reformed to render it enforceable in
accordance with its original provisions to the greatest possible extenpermitted
under applicable law; (v) this Agreement may be executed in counterparts, each
of which shall be deemed a fully-executed original; and (vi) except as provided
in “(iv)” above, this Agreement can only be amended by a writing signed by both
of the parties to this Agreement. Client and Consultant hereby voluntarily
consent to the jurisdiction of federal and state courts sitting in Hillsborough
County, Florida, but solely with respect to litigation of disputes arising out
of or relating to this Agreement, and, solely with respect to such litigation,
agree that exclusive and proper venue for such litigation shall be in
Hillsborough County, Florida
In Witness whereof, the each
party has caused this Agreement to be executed and delivered by such party or
(in the case of Client) a duly authorized representative of Client, as of
the date firs set forth hereinabove.
Consultant:
___________________________________
Xxxxx
Xxxxx
Client:
OMGI SUB.
LLC
By: _________________________________
Name: ______________________________
Title: _______________________________
Orion Marine Group,
Inc.
By:
________________________________
Name:
______________________________
Title:
_______________________________
C:\MyFiles\23756\04001\EXHIBIT
C CONSULTING AGREE.doc
Exhibit
D
February
xx, 2008
To:
RE:
Project#
Dear
Sir:
For
purposes of verification, please confirm to us whether or not the following
information as of February xx, 2008 is correct:
1. Original Contract
Price:
$
2. Total approved change
orders
$
Contract Price per most current
Pay Estimate as of February xx,
2008
$
Through invoice #xxxx, Estimate# xx
3. Total
xxxxxxxx
$
Retention
$
Net
Xxxxxxxx
$
4. Total
payments
$
5. Total unpaid balance excluding
retention
$
6. Details of any claims, back charges, disputes, defaults, breaches,
failure to perform, or delays concerning this contract or its performance,
including any conditions, circumstances or occurrences that may result in a
breach of or failure to perform this contract in accordance with all of its
terms and conditions (attach separate document if necessary).
7. Estimated completion date:
8. Required completion date: _________________________
A
business reply envelope is enclosed for your convenience. Please fax
the completed confirmation (including any notes on the reverse side hereof and
any additional pages) to the following number (xxx) xxx-xxxx), and mail the
original signed confirmation to the address provided in the self- addressed
envelope.
Very
truly yours,
Xxxxx
Xxxxx
President
Subaqueous
Services, Inc.
_____________________________________________________________________________
The
above information is:
(
)
Correct
( ) Incorrect (State detail of differences
on reverse side.)
By
__________________________________________________________
Signature
Title
Date
Exhibit
E
TRADEMARKS AND
COPYRIGHTS ASSIGNMENT
This Trademarks and Copyrights Assignment dated as of February, ___ 2008
(this "Assignment"), is entered into by Subaqueous Services, Inc., a Forida
corporation ("Assignor"), in favor of OMGI Sub, LLC., a Florida limited
liability company, ("Assignee").
WHEREAS, Assignor and Assignee are parties (with OMGI and Shareholder) to that
certain Asset Purchase Agreement dated February ___, 2008 (the "Agreement"),
pursuant to which Assignor has agreed to transfer to Assignee the Assets of
Assignor including, but not limited to, trademarks, trade names, service marks,
labels, logos, trade dress, copyrights, Internet domain names, site addresses,
and all other Intellectual Property, and all rights related thereto and
interests therein (including goodwill associated therewith), with respect to
which Assets Buyer hereby expresses its "intent-to-use;” and
WHEREAS, Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Agreeement;
NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Assignor does hereby (and pursuant to the
Agreement) assign, transfer, set over, and deliver to assignee all of Assignor's
right, title, and interest, in and to:
(i) all trademarks, trade names,
labels, logos, trade dress, copyrights, Internet domain names, site addresses,
and all rights related thereto which relate to the Business or are included in
the Assets, including, without limitation, the names, trademarks, trade names,
and service marks “Subaqueous Services, Inc.”, “Subaqueous Services,”
“Subaqueous,” “SSI,” and any other variations thereof, the stylized “S” synbol,
all rights of use and other rights with respect thereto, including all
copyrights with respect to any thereof, goodwill associated therewith, licenses
and sublicenses granted or obtained with respect thereto and rights there under,
rights, remedies and Claims with respect to infringements thereof by any Person,
and rights to protection of interests and rights therein under the laws of all
jurisdictions, including all registrations and applications thereof or therefor,
all registrations which may be granted in respect of such applications, all
renewals of such registrations, and all common law rights therein;
(ii) the goodwill of the Business
symbolized by such trademarks, trade names, service marks and trade dress, and
other Intellectual Property; and
(iii) all rights, interests, benefits,
and remedies corresponding to any of the foregoing throughout the
world.
From
time to time after the date hereof, at the request of any Party, and at the
expense of the Party so requesting, the other Parties shall execute and deliver
to such requesting Party such documents and take such other action as such
requesting Party may reasonably request in order to consummate more effectively
the transactions contemplated hereby.
Assignor also hereby authorizes
and requests the issuing authority to issue any and all United States and
foreign trademarks and copyrights as set forth herein to the Assignee;
and
This
Assignment shall be binding on the heirs, assigns, representatives and
successors of the undersigned and extend to the successors, assigns and nominees
of the Assignee.
IN
WITNESS WHEREOF, the undersigned has caused this Assignment to be duly executed
and delivered as of and on the Closing Date.
Subacqueous Services,
Inc.
By:
Xxxxx Xxxxx
President
Acknowledged and
Accepted:
OMGI Sub,
LLC
By:
Name:
Title:
STATE OF
_______
§
COUNTY OF
______
§
On
this ___ day of February, 2008, before me, the undersigned, a Notary Public
within and for said County and State, personally appeared Xxxxx Xxxxx, to me
personally known, who being by me duly sworn, did say that he is the President
of Subaqueous Services, Inc., that the seal affixed to the foregoing instrument
is the corporate seal of said corporation, that said instrument was signed and
sealed on behalf of said corporation by authority of its Board of Directors, and
said President acknowledged said instrument to be the free act and deed of said
corporation.
IN WITNESS
WHEREOF, I have hereunto set my hand and affixed my official seal at my office
in _____________ County, _____________, the day and year last above
written.
Notary
Public in and for Said County and State
(Type,
print or stamp the Notary's name below his or her signature.)
My Commission
Expires:
1468409.1
Exhibit
F
Purchase of Subaqueous Services
Assets
|
|
Exhibit F---ALLOCATION OF
PURCHASE PRICE:
PP&E
|
$18,500,000
|
Intangible-contracts
|
$
7,000,000
|
Intangible-non-compete
|
$
100,000
|
Goodwill
|
$
9,400,000
|
|
$35,000,000
|