PURCHASE AGREEMENT by and between PENSKE CORPORATION and [Seller] dated as of September 14, 2006
Exhibit 43
by and between
PENSKE CORPORATION
and
[Seller]
dated as of
September 14, 2006
ARTICLE I |
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SALE AND PURCHASE OF SECURITIES |
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Section 1.1
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The Purchase | 1 | ||||
Section 1.2
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Purchase Price | 1 | ||||
Section 1.3
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The Closing | 1 | ||||
Section 1.4
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Payment and Payment Instructions | 2 | ||||
Section 1.5
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Actions at the Closing | 2 | ||||
Section 1.6
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Legend | 2 | ||||
ARTICLE II |
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REPRESENTATIONS & WARRANTIES CONCERNING THE SELLER |
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Section 2.1
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Power and Authority | 3 | ||||
Section 2.2
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Enforceability of the Agreement | 3 | ||||
Section 2.3
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No Conflict | 3 | ||||
Section 2.4
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Consents | 3 | ||||
Section 2.5
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Title to Shares | 4 | ||||
Section 2.6
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Stock | 4 | ||||
ARTICLE III |
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REPRESENTATIONS & WARRANTIES CONCERNING THE PURCHASER |
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Section 3.1
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Representations and Warranties of the Purchaser | 5 | ||||
ARTICLE IV |
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CONDITIONS |
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Section 4.1
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Conditions to Obligations of the Purchaser | 6 | ||||
Section 4.2
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Conditions to Obligations of the Seller | 7 | ||||
ARTICLE V |
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TERMINATION |
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Section 5.1
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Termination prior to Closing | 7 | ||||
Section 5.2
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Effects of Termination | 8 | ||||
Section 5.3
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Survival of Representations | 8 |
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ARTICLE VI |
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MISCELLANEOUS |
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Section 6.1
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Notices | 8 | ||||
Section 6.2
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Amendments and Waivers | 9 | ||||
Section 6.3
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Successors and Assigns | 9 | ||||
Section 6.4
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Entire Agreement | 9 | ||||
Section 6.5
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Governing Law | 9 | ||||
Section 6.6
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Submission to Jurisdiction | 9 | ||||
Section 6.7
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Counterparts | 10 | ||||
Section 6.8
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Severability | 10 | ||||
Section 6.9
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Specific Performance | 10 | ||||
Section 6.10
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Further Assurances | 10 | ||||
Section 6.11
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Expenses | 10 | ||||
ARTICLE VII |
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DEFINITIONS |
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Section 7.1
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Definitions | 10 |
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This PURCHASE AGREEMENT (the “Agreement”) dated as of September 14, 2006 is by and
between PENSKE CORPORATION, a Delaware corporation (the “Purchaser” or “Penske”),
and [Seller], having an address on the signature page (the “Seller”).
RECITALS
WHEREAS, the Seller desires to sell to the Purchaser, and the Purchaser desires to purchase
from the Seller, one-half of the shares of Common Stock, par value $0.0001 per share, of United
Auto Group, Inc., a Delaware corporation (the “Company”) (the “Shares) that are to be distributed
to Seller in Seller’s capacity as a member of Penske Associates, LLC, a Delaware limited liability
company (“Associates”) in September, 2006 (the “Distribution”), for a purchase price determined in
accordance with this Agreement;
NOW, THEREFORE, in consideration of the mutual promises and of the mutual covenants,
representations and warranties and obligations hereinafter set forth, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
ARTICLE I
SALE AND PURCHASE OF SECURITIES
Section 1.1 The Purchase. At the Closing, subject to the terms and conditions hereof,
the Purchaser shall purchase from the Seller, and the Seller shall sell to Purchaser one-half of
the shares of Common Stock of the Company received by the Seller in the Distribution (the
“Securities”) at a purchase price per share and an aggregate purchase price determined in
accordance with Section 1.2 (the “Purchase Price”) payable at the Closing (the
“Purchase”).
Section 1.2 Purchase Price. The purchase price of each Share shall be the average of
the daily closing sales prices of the Common Stock of the Company for the twenty (20) consecutive
trading days as reported on the New York Stock Exchange immediately preceding September 12, 2006
(the “Current Market Value”). The aggregate purchase price shall be the amount determined by
multiplying the number of shares of Common Stock of the Company being sold to the Purchaser by the
Current Market Value (the “Aggregate Purchase Price”).
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Section 1.3 The Closing. The closing of the sale and purchase of the Securities (the
“Closing”) shall take place at the offices of Penske Corporation, 0000 Xxxxxxxxx
Xxxx, Xxxxxxxxxx Xxxxx, Xxxxxxxx, at 9:00 a.m., New York time, as soon as practicable, but in
any event not earlier than September 12, 2006 nor later than five Business Days thereafter, and, in
any event, only upon the satisfaction or waiver of the conditions contained in Article IV,
unless the parties otherwise agree in writing (the “Closing Date”).
Section 1.4 Payment and Payment Instructions. The Seller shall receive the Purchase
Price from the Purchaser at the Closing in the form of that number of shares of Penske Corporation
Class C Non-voting common stock ($.01 par value) (the “Stock”) resulting from the following
fraction:
Aggregate Purchase Price
Fair Market Price of a share of the Stock
Fair Market Price of a share of the Stock
No fractional shares of the Stock shall be issued. The Seller shall receive in cash the value
of the fractional share of the Stock based upon the Fair Market Price of a single share of the
Stock.
Section 1.5 Actions at the Closing. At the Closing, the following actions shall occur
(the “Closing Actions”):
(a) The Seller shall deliver to the Purchaser the Securities, free and clear of liens
and encumbrances thereon.
(b) The Purchaser shall pay the Aggregate Purchase Price to the Seller by good check and
the shares of the Stock determined in accordance with Section 1.4 within three (3) Business
Days of the Closing.
Section 1.6 Legend.
(a) The parties hereby acknowledge and agree that each of the certificates representing
the Securities and the Stock shall include the following legend and any other legend required
by law:
THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY BE OFFERED OR SOLD ONLY IF REGISTERED
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.
(b) The requirement that the above securities legend be placed upon certificates
evidencing shares of the Stock shall cease and terminate upon the earliest of the following
events: (i) when such shares are transferred in an underwritten public offering,
(ii) when such shares are transferred pursuant to
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Rule 144 in compliance with the Securities Act or (iii) when such shares are
transferred in any other transaction if the seller delivers to Penske, if applicable, an
opinion of its counsel, which counsel and opinion shall be reasonably satisfactory to the
Company, or a “no-action” letter from the staff of the Securities and Exchange Commission, in
either case to the effect that such legend is no longer necessary in order to protect Penske,
if applicable, against a violation by it of the Securities Act upon any sale or other
disposition of such shares without registration thereunder. Upon the consummation of any
event requiring the removal of a legend hereunder, Penske, if applicable, upon the surrender
of certificates containing such legend, shall, at its own expense, deliver to the holder of
any such shares as to which the requirement for such legend shall have terminated, one or
more new certificates evidencing such shares not bearing such legend.
ARTICLE II
REPRESENTATIONS & WARRANTIES CONCERNING THE SELLER
The Seller hereby represents and warrants to the Purchaser as follows as of the date hereof
and as of the Closing Date:
Section 2.1 Power and Authority. The Seller has the power and authority to enter and
deliver this Agreement, to perform his/her obligations hereunder and carry out the transactions
contemplated by the Agreement.
Section 2.2 Enforceability of the Agreement. The Agreement constitutes a legal, valid
and binding obligation of the Seller, enforceable against the Seller, in accordance with its terms,
except to the extent that enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting creditors’ rights generally.
Section 2.3 No Conflict. The execution, delivery and performance by the Seller of the
Agreement and the consummation by the Seller of the transactions contemplated hereby and thereby,
and the sale and delivery by the Seller of the Securities will not (a) violate any
provision of law, statute, rule or regulation (including stock exchange rules), or any ruling,
writ, injunction, order, judgment or decree of any court, administrative agency or other
governmental body applicable to the Seller or any of its properties or assets, or (b)
conflict with or result in any breach of any of the terms, conditions or provisions of, or
constitute (with due notice or lapse of time, or both) a default (or give rise to any right of
termination, cancellation or acceleration) under any agreement of the Seller, or result in the
creation of any mortgage, lien, security interest, loan, charge or encumbrance, upon any of the
properties or assets of the Seller.
Section 2.4 Consents. No permit, authorization, consent or approval of or by, or any
notification of or filing of the Seller with any person (governmental or private) is required in
connection with the execution and delivery by the Seller of the Agreement or
any documentation relating thereto, the consummation by the Seller of the transactions
contemplated hereby or thereby, or the sale or delivery of the Securities.
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Section 2.5 Title to Shares. Upon delivery of the Securities as provided in Section
1.4, the Securities will be duly authorized and validly issued, and the Purchaser will acquire good
and valid title to the Securities, free and clear of any encumbrances and liens. The Securities
shall be fully paid and non-assessable.
Section 2.6 Stock. The Seller is acquiring the Stock for his/her own account, for
investment and not with a view to the distribution thereof within the meaning of the Securities Act
and the Seller has no contract, understanding, agreement or arrangement with any person to transfer
to such person or any other person any of the Stock, and the Seller has no present intention to
enter into any such contract, understanding, agreement or arrangement. The Seller understands that
(i) the Stock has not been registered under the Securities Act or any state securities laws, (ii)
the Stock may not be sold unless such disposition is registered under the Securities Act and
applicable state securities law or is exempt from registration and/or regulation thereunder as the
case may be and (iii) that the availability of the exemptions relied upon by Penske in issuing the
Stock is dependent, in part, upon the truth of the representations and warranties made by the
Seller in this Agreement. The Seller is an “Accredited Investor” (as defined in Rule 501(a) under
the Securities Act).
The Seller (1) is thoroughly familiar with the business of Penske, (2) is knowledgeable and
experienced with respect to the financial, tax and business aspects relating to the ownership of
the Stock, (3) is familiar with the risks associated with the business and operations of Penske,
(4) has made all investigations that the Seller deems necessary or desirable in connection with its
investment, (5) has had an opportunity to discuss Penske’s business, management, and financial
projections with representatives of Penske and to ask questions of and receive answers regarding
the terms and conditions of the transactions contemplated hereby, (6) has such knowledge and
experience in financial and business matters as to be capable of evaluating the merits and risks of
its investment in Penske, and (7) has the ability to bear the economic risks of its investment in
Penske for an indefinite period of time, including the risk of a complete loss of its investment.
The Seller understands that that the shares of Stock are “restricted securities” under
applicable U.S. federal and state securities laws and that, pursuant to these laws, the Seller must
hold the shares of Stock indefinitely unless they are registered with the Securities and Exchange
Commission and qualified by the state authorities (unless an exemption from such registration and
qualification requirements is available) and Penske is under no obligation (and has no intention)
to register the Stock under any circumstances or to attempt to make available any exemption from
registration under the Act or any applicable state securities law, at the Seller’s expense or
otherwise.
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The Seller acknowledges that (1) if an exemption from registration or qualification is
available, it may be conditioned on various requirements, including but not limited to the
availability of current public information about Penske, the time and manner of the sale, and on
requirements relating to Penske that are outside of the Seller’s control; and (2) Penske is not
presently subject, and may never be subject, to the reporting requirements of the Securities
Exchange Act of 1934, as amended, to the extent required to enable the Seller to sell its shares of
Stock pursuant to Rule 144 under the Act.
The Seller understands that no public market now exists for any of the securities issued by
Penske, and that Penske has made no assurances that a public market will ever exist for the Stock.
The Seller is relying solely on its own conclusions or the advice of its own counsel or
advisors with respect to the tax aspects of its investment in Penske.
ARTICLE III
REPRESENTATIONS & WARRANTIES CONCERNING THE PURCHASER
Section 3.1 Representations and Warranties of the Purchaser. Purchaser represents and
warrants to the Seller as of the date hereof and as of the Closing Date as follows:
(a) Such Purchaser is acquiring Securities for its own account, for investment and not
with a view to the distribution thereof within the meaning of the Securities Act.
(b) Such Purchaser understands that (i) the Securities have not been registered
under the Securities Act or any state securities laws, and (ii) the Securities may
not be sold unless such disposition is registered under the Securities Act and applicable
state securities laws or is exempt from registration and/or regulation thereunder as the case
may be.
(c) Such Purchaser is an “Accredited Investor” (as defined in Rule 501(a) under the
Securities Act).
(d) Such Purchaser is duly organized and validly existing under the laws of the
jurisdiction of its organization and has all power and authority to enter into this
Agreement.
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(e) The execution and delivery of this Agreement has been duly authorized by all
requisite corporate action on the part of such Purchaser, and the Agreement constitutes a
legal, valid and binding obligation of such Purchaser, enforceable against such Purchaser, in
accordance with its terms, except to the extent that enforceability may be limited by
bankruptcy, insolvency or other similar laws affecting creditors’ rights generally.
(f) The execution, delivery and performance by such Purchaser of the Agreement and the
consummation by such Purchaser of the transactions contemplated thereby will not (a)
violate any provision of law, statute, rule or regulation, or any ruling, writ, injunction,
order, judgment or decree of any court, administrative agency or other governmental body
applicable to such Purchaser, or any of its properties or assets, or (b) violate the
certificate of incorporation or the bylaws of such Purchaser.
(g) Upon delivery of the Stock as provided in Section 1.4, the Stock will be duly
authorized and validly issued, and the Seller will acquire good and valid title to the
Stock, free and clear of any encumbrances and liens. The Stock shall be fully paid and
non-assessable.
ARTICLE IV
CONDITIONS
Section 4.1 Conditions to Obligations of the Purchaser. The obligations of the
Purchaser to consummate the Purchase shall be subject to the fulfillment on or prior to the Closing
of each of the following conditions:
(a) No statute, rule or regulation or order of any court or administrative agency shall
be in effect which prohibits the consummation of the transactions to be consummated at
Closing;
(b) Each of the representations and warranties of the Seller contained in this Agreement
shall be true and correct as of the Closing (except to the extent such representations and
warranties are made as of a particular date, in which case such representations and
warranties shall have been true and correct in all material respects as of such date);
(c) Associates shall have authorized and approved the distribution, and have
distributed, the Securities to the Seller and Associates shall have delivered to the
Purchaser a certificate, dated the Closing Date and signed by Associates to the effect set
forth in this Section 4.1(c); and
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(d) Mitsui & Co., Ltd. and Mitsui & Co. (U.S.A.), Inc. (the “Mitsui Parties”) have
closed the transaction with the Seller, and all other sellers who have contracted with the
Mitsui Parties to do so, contemplated by that Purchase Agreement with the Seller dated as
of the date of this Agreement (the “Mitsui Purchase Agreement”).
Section 4.2 Conditions to Obligations of the Seller. The obligation of the Seller to
consummate the Purchase shall be subject to the satisfaction or waiver at or prior to the Closing
of each of the following conditions:
(a) Each of the representations and warranties of the Purchaser contained in this
Agreement shall be true and correct as of Closing (except to the extent such representations
and warranties are made as of a particular date, in which case such representations and
warranties shall have been true and correct in all material respects as of such date);
(b) The Purchaser in all material respects shall have performed, satisfied and complied
with each of its covenants and agreements set forth in this Agreement to be performed,
satisfied and complied with prior to or at the Closing; and
(c) The Purchaser shall have delivered to the Seller a certificate dated the Closing
Date and signed by such Purchaser to the effect that the execution, delivery and performance
of the Agreement has been duly authorized by all requisite corporate action on the part of
such Purchaser and the Agreement constitutes a legal, valid and binding obligation of such
Purchaser, enforceable against such Purchaser, in accordance with its terms, except to the
extent that enforceability may be limited by bankruptcy, insolvency or other similar laws
affecting creditors’ rights generally;
ARTICLE V
TERMINATION
Section 5.1 Termination prior to Closing. This Agreement may be terminated at any
time prior to the Closing upon written notice of such termination by the terminating party to the
other party setting forth the basis for such termination:
(a) by mutual written consent of the Seller and the Purchaser; or
(b) by either the Purchaser or the Seller if any of the applicable conditions set forth
in Article IV have not been satisfied or waived on or before September 15, 2006;
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(c) by either the Purchaser or the Seller if a court of competent jurisdiction or
governmental, regulatory or administrative agency or commission shall have issued a
nonappealable final order, decree or ruling or taken any other action having the effect of
permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by
this Agreement; or
(d) by the Purchaser or the Seller, (i) if any representation or warranty of the
other set forth in this Agreement shall be untrue in any material respect when made to the
extent that such first party did not have actual knowledge of such breach as of the date of
this Agreement, or (ii) upon a breach in any material respect of any covenant or
agreement on the part of the other set forth in this Agreement, in each case which would
constitute a failure of the condition to Closing of the first party.
Section 5.2 Effects of Termination. In the event of termination of this Agreement
pursuant to Section 5.1, this Agreement shall become void and have no effect, without any
liability to any person in respect hereof, except for any liability resulting from such party’s
breach of this Agreement.
Section 5.3 Survival of Representations. The representations and warranties made in
this Agreement shall survive for a period ending eighteen months after Closing, provided
that the representation and warranties of the Seller set forth in Section 2.5 and the
representation and warranties of the Purchaser set forth in Section 3.1(g) shall survive
without limitation.
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ARTICLE VI
MISCELLANEOUS
Section 6.1 Notices. Except as otherwise provided in this Agreement, all notices,
requests, consents and other communications hereunder to any party shall be deemed to be sufficient
if contained in a written instrument delivered in person or by telecopy (with confirmation promptly
sent by regular mail), nationally recognized overnight courier or first class registered or
certified mail, return receipt requested, postage prepaid, addressed to such party at the address
set forth below or such other address as may hereafter be designated in writing by such party to
the other parties:
(i) if to the Seller, to the address for Seller listed on the signature page.
with a copy to:
Penske Corporation
0000 Xxxxxxxxx Xxxx
Xxxxxxxxxx Xxxxx, Xxxxxxxx 00000-0000
Attention: General Counsel
0000 Xxxxxxxxx Xxxx
Xxxxxxxxxx Xxxxx, Xxxxxxxx 00000-0000
Attention: General Counsel
(ii) if to the Purchaser, to:
Penske Corporation
0000 Xxxxxxxxx Xxxx
Xxxxxxxxxx Xxxxx, XX 00000
Attention: Executive Vice President and General Counsel
0000 Xxxxxxxxx Xxxx
Xxxxxxxxxx Xxxxx, XX 00000
Attention: Executive Vice President and General Counsel
All such notices, requests, consents and other communications shall be deemed to have been given
when received.
Section 6.2 Amendments and Waivers. This Agreement may be amended, modified,
supplemented or waived only upon the written agreement of the party against whom enforcement of
such amendment, modification, supplement or waiver is sought.
Section 6.3 Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective successors and the
personal representatives and assigns of the parties hereto, whether so expressed or not.
Section 6.4 Entire Agreement. This Agreement (with the documents referred to herein
or delivered pursuant hereto and together with the Agreement) embodies the entire agreement and
understanding between the parties hereto and supersedes all prior agreements and understandings
relating to the subject matter hereof.
Section 6.5 Governing Law. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of New York without giving effect to the
conflicts of law principles thereof which might result in the application of the laws of any other
jurisdiction.
Section 6.6 Submission to Jurisdiction. Each of the Seller and the Purchaser hereby
(i) irrevocably submit to the jurisdiction of the courts of the State of New York and the
Federal courts of the United States of America located in the State of New York solely in respect
of the interpretation and enforcement of the provisions of this Agreement, and in respect of the
transactions contemplated hereby, and (ii) agrees that service of any process, summons or
notice by international courier to the address set forth in Section 6.1 shall be effective service
of process for any action or proceeding brought against it in any such court.
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Section 6.7 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together shall constitute one
instrument. All signatures need not appear on any one counterpart.
Section 6.8 Severability. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.
Section 6.9 Specific Performance. The parties hereto acknowledge that there would be
no adequate remedy at law if any party fails to perform any of its obligations hereunder, and
accordingly agree that each party, in addition to any other remedy to which it may be entitled at
law or in equity, shall be entitled to injunctive relief, including specific performance, to
enforce such obligations without the posting of any bond, and, if any action should be brought in
equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise
the defense that there is an adequate remedy at law.
Section 6.10 Further Assurances. Each party hereto shall do and perform or cause to
be done and performed all such further acts and things and shall execute and deliver all such other
agreements, certificates, instruments, and documents (including, without limitation, the
agreements, certificates, instruments and documents contemplated by Article IV) as any other party
hereto reasonably may request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.
Section 6.11 Expenses. Each party to this Agreement shall bear its own cost and
expenses, including fees of consultant(s), accountant(s), counsel, and other persons acting on
behalf of or for such party.
ARTICLE VII
DEFINITIONS
Section 7.1 Definitions. Unless otherwise defined herein, capitalized terms used
herein shall have the meanings specified below:
“Aggregate Purchase Price” has the meaning set forth in Section 1.2.
“Associates” has the meaning set forth in Section 4.1(c).
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“Business Day” means a calendar day, other than (a) a Saturday or Sunday, and
(b) a day on which commercial banks are required or permitted by law or other
governmental action to close in New York, New York, United States of America or Tokyo, Japan.
“Closing” has the meaning set forth in Section 1.3.
“Closing Actions” has the meaning set forth in Section 1.5.
“Closing Date” has the meaning set forth in Section 1.3.
“Common Stock” means the Common Stock, par value $.0001 per share, of the Company, and
includes any securities issued with respect to such shares by way of stock dividend or stock split
or in connection with a combination of shares, recapitalization, amalgamation, merger,
consolidation or other reorganization or otherwise.
“Company” has the meaning set forth in the preamble.
“Current Market Value” has the meaning set forth in Section 1.2.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Fair Market Price” means the price that Penske Corporation has most recently advised
the Penske Corporation Deferred Profit Sharing Plan corporate trustee in writing that Penske
Corporation shall be willing to purchase the Stock from that Plan.
“Mitsui Parties” has the meaning set forth in Section 4.1(d).
“Mitsui Purchase Agreement” has the meaning set forth in Section 4.1(d).
“Penske” shall mean Penske Corporation, a Delaware corporation.
“Purchase” has the meaning set forth in Section 1.1.
“Purchase Price” shall have the meaning set forth in Section 1.1.
“Securities” has the meaning set forth in Section 1.1.
“Securities Act” means the Securities Act of 1933, as amended.
“Stock” has the meaning set forth in Section 1.4.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first
above written.
SELLER: | ||||||
/s/ Seller | ||||||
Name | ||||||
By: | ||||||
Title: | ||||||
PURCHASER: | ||||||
PENSKE CORPORATION | ||||||
By: | /s/ Xxxxxx X. Xxxxxxx, Xx. | |||||
Xxxxxx X. Xxxxxxx, Xx. | ||||||
President | ||||||
SELLER’s address: | ||||||
0000 Xxxxxxxxx Xxxx Xxxxxxxxxx Xxxxx, XX 00000 |
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