Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, between the date hereof and the Closing, the Company shall: (i) conduct the Business only in the Ordinary Course of Business; (ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers); (iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement; (iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company; (v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan; (vi) comply in all material respects with all applicable Laws; (vii) take steps to renew all Permits in a timely manner prior to their lapse; and (viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company. (b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not: (i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company; (ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person; (iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets; (iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company; (v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person; (vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business; (vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee; (viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products; (ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business; (x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons; (xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit; (xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000; (xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities; (xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement; (xv) amend the operating agreement of the Company; (xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or (xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 6 contracts
Samples: Asset Purchase Agreement (Western Iowa Energy, L.L.C.), Asset Purchase Agreement (Central Iowa Energy, LLC), Asset Purchase Agreement (Central Iowa Energy, LLC)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Section 8.2(a) of the Seller Disclosure Letter, (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser, between Seller shall, solely as relates to the date hereof Business, and the Closing, the Company shallshall cause Subsidiary to:
(i) conduct the Business and the business of Subsidiary only in the Ordinary Course of Business;; and
(ii) use its commercially reasonable efforts Commercially Reasonable Efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of Seller (as they relate to the Company Business or the Purchased Assets) and Subsidiary and (B) preserve the present relationships with Persons having business dealings customers and suppliers of Seller (as they relate to the Business or the Purchased Assets) and Subsidiary.
(b) Except (i) as set forth on Schedule 8.2(b) of the Seller Disclosure Letter, (ii) as required by applicable Law, (iii) as otherwise contemplated by this Agreement or (iv) with the Company prior written consent of Purchaser, Seller shall not, solely as relates to the Purchased Assets, and shall not permit Subsidiary to:
(including customers and suppliers)i) subject any of the Buisness or the Purchased Assets or any of the assets of Subsidiary, to any Lien, except for Permitted Exceptions, or subject the Purchased Shares to any Lien;
(iiiii) maintain (A) all of the acquire assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in outside the Ordinary Course of Business, Business from any other Person (B) continue except pursuant to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet an existing Agreement or inventory in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any portion of the Business or the Purchased Assets (except for fair consideration pursuant to an existing Agreement or inventory in the Ordinary Course of BusinessBusiness or for the purpose of disposing of obsolete or worthless assets) in each case, with an aggregate value in excess of the CompanyOne Hundred Thousand Dollars ($100,000);
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(viiii) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Subsidiary or Seller that constitutes a Purchased Asset except in the Ordinary Course of Business;
(viiiv) merge or consolidate with any other Person, except for any such transactions among Seller’s wholly-owned subsidiaries, or restructure, reorganize or completely or partially liquidate or otherwise enter intointo any agreements or arrangements imposing material changes or restrictions on its assets, modify operations or terminate businesses;
(v) declare, set aside, make or pay any labor dividend or collective bargaining agreement orother distribution, through negotiation payable in cash, stock, property or otherwise, make any commitment or incur any Liability to any labor organization with respect to the Purchased Shares;
(vi) issue (other than on exercise of options of Seller or rights of Seller set forth in the Seller Disclosure Letter), sell, pledge, dispose of, grant, transfer, encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, lease, license, guarantee or encumbrance of, any Employeeshares of its or Subsidiary’s capital stock, or securities or rights convertible or exchangeable into or exercisable for any shares of such capital stock, or any options, warrants or other rights of any kind to acquire any shares of such capital stock or such convertible or exchangeable securities, including any options of Seller or rights of Seller;
(vii) reclassify, split, combine, subdivide or redeem, purchase or otherwise acquire, directly or indirectly, any of Subsidiary’s capital stock or securities convertible or exchangeable into or exercisable for any shares of Subsidiary’s capital stock;
(viii) introduce adopt or propose any change in its articles of association or other applicable governing instruments of Seller or Subsidiary that would adversely affect the Business or the Purchased Assets or Seller’s ability to perform its obligations under this Agreement;
(ix) make any material Tax election, make any change in any method of accounting for Tax purposes or make any application with any Governmental Body or seek any Tax ruling from a Governmental Body, if there is a risk that such ruling may result in any terms, restrictions, liabilities or obligations being imposed on the Business or the Purchased Assets;
(x) incur any Indebtedness for borrowed money or guarantee such Indebtedness of another Person, or issue or sell any debt securities or warrants or other rights to acquire any of its or Subsidiary’s debt securities, except for (A) Indebtedness for borrowed money incurred in the Ordinary Course of Business consistent with past practices (x) not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate or (y) in replacement of existing Indebtedness for borrowed money on terms substantially consistent with or more beneficial than the indebtedness being replaced, or (B) guarantees by Seller of Indebtedness of its wholly-owned subsidiaries incurred in compliance with this Section 8.2 or (C) interest rate swaps on customary commercial terms consistent with past practice and in compliance with its risk management policies in effect on the date of this Agreement and not to exceed One Hundred Thousand Dollars ($100,000) of notional debt in the aggregate;
(xi) make any loans, advances or capital contributions to or investments in any Person (other than between itself and any of its direct or indirect wholly-owned Subsidiaries);
(xii) modify, other than in an immaterial manner, any policy or procedure with respect to the operation collection of receivables or payment of payables directly related to the BusinessBuisness or the Purchased Assets;
(xiii) pay, including discharge or satisfy before it is due any material change claim or Liability directly related to the Buisness or the Purchased Assets or fail to pay any such item in a timely manner directly related to the typesBusiness or the Purchased Assets, naturein each case except in accordance with the Ordinary Course of Business;
(xiv) make any changes with respect to accounting policies or procedures that adversely affects the Buisness or the Purchased Assets, composition or quality of products or services, or, other than except as required by changes in applicable generally accepted accounting principles;
(xv) except in the Ordinary Course of Business, make amend, waive, surrender or terminate or agree to the amendment, waiver, surrender or termination of any change in product specifications Seller Material Agreement or prices any material Permit that adversely affects the Business or terms of distributions of such productsthe Purchased Assets;
(ixxvi) enter into except in the Ordinary Course of Business, exercise any transaction right or enter into, modify option under or extend or renew any Contract which by reason Seller Material Agreement that adversely affects the Business or the Purchased Assets;
(xvii) except in the Ordinary Course of Business enter into or engage in any transaction with its size Affiliates that adversely affects the Business or otherwise is not the Purchased Assets;
(xviii) pay any management charge to Seller or any entity other than Subsidiary;
(xix) take any action that would reasonably be expected to result in a material increase in Tax liability (or a corresponding loss of Tax attributes) relating to the Business or the Purchased Assets other than in the Ordinary Course of Business;
(xxx) enter into any Contractagree, understanding commit or commitment that restrains, restricts, limits offer (in writing or impedes the ability of the Business, or the ability of Newco or Purchaser, otherwise) to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties actions described in clauses “(i)” through “(xix)” of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanySection 8.2(b).
Appears in 5 contracts
Samples: Asset Purchase Agreement (Ophthalmic Imaging Systems), Asset Purchase Agreement (Ophthalmic Imaging Systems), Asset Purchase Agreement (Ophthalmic Imaging Systems)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoParent, between the date hereof and the Closing, the Company shall:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoParent, the Company shall not:
(i) (A) increase the salary or other compensation of any director manager or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or directormanager, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directorsmanagers, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors managers or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.54.6; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person; or (E) pay or make any dividend or distribution of cash or other property with respect to the Company Units or other equity securities of the Company;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Company Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Company Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in by Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contractcontract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco Parent or PurchaserMergerLLC, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts provided therein as are in effect on the date of this Agreement and upon such other terms as are in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 3 contracts
Samples: Merger Agreement (Blackhawk Biofuels, LLC), Agreement and Plan of Merger (Blackhawk Biofuels, LLC), Agreement and Plan of Merger (Blackhawk Biofuels, LLC)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Seller shall use their best efforts, and shall cause the Company shallto:
(i) conduct Conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures or the purchase of assets out of the ordinary course in excess of $5,000;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection the Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 3 contracts
Samples: Stock Purchase Agreement (IBC Equity Holdings), Stock Purchase Agreement (CP US Income Group, LLC), Stock Purchase Agreement (Zysblat Robert)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 6.2, (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement Agreement, (iv) for any transactions among the Company and its wholly-owned Subsidiaries or among the Company’s wholly-owned Subsidiaries, or (v) with the prior written consent of Newco, between the date hereof and the ClosingParent, the Company shall:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) , and shall cause its Subsidiaries to, use its commercially reasonable efforts to (Ax) preserve conduct the present business operations, organization (including officers and Employees) and goodwill respective businesses of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) its Subsidiaries in all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company material respects in the Ordinary Course of Business, (By) continue to collect accounts receivable preserve their relationships, in all material respects, with customers, suppliers, distributors, licensors, licensees, lessors and pay accounts payable others Persons having business dealings with the Company or its Subsidiaries and other Liabilities set forth on the Balance Sheet (z) make capital expenditures in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply in accordance with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the CompanyCapEx Budget.
(b) Without limiting the generality of the foregoing, except (i) as set forth on Schedule 6.2, (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement Agreement, (iv) for any transactions among the Company and its wholly-owned Subsidiaries or among the Company’s wholly-owned Subsidiaries, or (v) with the prior written consent of NewcoParent (which consent shall not be unreasonably withheld, conditioned or delayed), the Company shall not, and shall not permit any of its Subsidiaries to:
(i) issue or sell, or authorize the issuance or sale of, any shares of capital stock or other equity interests of the Company or any of its Subsidiaries (other than any issuances pursuant to Options and RSUs outstanding on the date hereof under the Equity Incentive Plan or the Exchangeable Notes), or any securities convertible into, or options with respect to, warrants to purchase, or rights to subscribe for, any shares of capital stock or other equity interests of the Company or any of its Subsidiaries;
(ii) purchase or redeem any shares of capital stock or other equity interests of the Company or its Subsidiaries, or effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company or any of its Subsidiaries;
(iii) amend in any material respect the certificate of incorporation or bylaws or comparable organizational documents of the Company or any of its Subsidiaries;
(iv) (A) grant any increase in the base salaries or wages payable or bonus opportunities or employee benefits provided to any Company Employees or current directors or individual independent contractors, except for base salary or wage increases for Company Employees (other compensation of any director than directors or Employee of the Company except for normal year-end increases executive officers) (x) in the Ordinary Course of Business, (By) grant any bonusas required under contractual arrangements in effect as of the date of this Agreement, benefit or other direct (z) in the Ordinary Course of Business in connection with the progression or indirect compensation to any promotion of a Company Employee that does not have a title of “Senior Vice President” or directorhigher or otherwise does not have a total annual base salary in excess of $275,000 (for such Company Employees based in the United States or China) or €275,000 (for such Company Employees based in Europe)); provided, that in the case of clause (x), such increases do not exceed, in the aggregate, on a Company-wide basis, three percent (3%) of the aggregate Company expense for base salaries and wages as of the date hereof, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (DB) enter into any employment, deferred compensation, stay bonus, severance, special payretention, consulting, non-competition change of control or similar agreement or arrangement with any Company Employees or current directors or officers of the Company individual independent contractors, (C) establish, adopt, enter into, amend or amend terminate any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash Collective Agreement or other property with respect collective bargaining agreement or Company Benefit Plan, except for amendments to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred Company Benefit Plans in the Ordinary Course of Business since that (x) are entered into in connection with open enrollment for the Balance Sheet Datecurrent plan year or (y) do not materially increase the cost to the Company, in the aggregate, of maintaining such Company Benefit Plan, (D) take any action to accelerate any payment or benefit, or the funding of any payment or benefit, payable or to become payable to any of the Company Employees or current directors or individual independent contractors, (zE) terminate the Indebtedness set forth on employment of any Company Disclosure Schedule 4.5; Employee with the title of “Senior Vice President” or higher and having a total annual base salary in excess of $225,000 (Bfor such Company Employees based in the United States or China) or €300,000 (for such Company Employees based in Europe), other than for cause (determined in the Company’s sole discretion), or carry out any mass redundancy (Massenentlassung), in each case, except as required by applicable Law or under any Company Benefit Plan in effect as of the date of this Agreement;
(v) hire any new employees, unless such hiring is in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase Business consistent with past practice with respect to employees with an annual base salary not to exceed $225,000 (for potential new employees based in the United States or satisfy any Indebtedness issued China) or guaranteed by the Company; €300,000 (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personfor potential new employees based in Europe);
(iiivi) subject to any Lien any of the properties (including the Real Property) or otherwise encumber orassets (whether tangible or intangible) of the Company or any of its Subsidiaries, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvii) become legally committed to make any capital expenditures, except (A) for any capital expenditures pursuant to projects for which work has already been commenced or committed or is otherwise contemplated in the CapEx Budget, (B) for any capital expenditures that are less than $1,000,000, individually, or that are in the aggregate, less than $5,000,000, when aggregated with all other capital expenditures pursuant to this clause (B), or (C) for any capital expenditure related to a Force Majeure;
(viii) acquire the equity securities or substantially all of the assets of any material properties entity (whether directly or assets indirectly and whether by merger, acquisition of securities or assets, reorganization, recapitalization or otherwise);
(ix) (A) incur, create, refinance, replace, cancel, prepay, guarantee, or assume any indebtedness (including guarantees) in an aggregate amount in excess of $5,000,000 in the aggregate or (B) enter into any hedging, swap or similar arrangements, in each case, outside of the Ordinary Course of Business;
(x) sell, assign, license, transfer, convey, lease lease, sublease or otherwise dispose of any of material properties (including the Purchased Assets (except for fair consideration in the Ordinary Course of BusinessReal Property) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right assets of the Company or any of its Subsidiaries except in the Ordinary Course of Business;
(viixi) enter into(A) make or rescind any material election relating to Taxes, modify (B) settle or terminate compromise any labor material Tax liability, (C) adopt or collective bargaining agreement orchange any material method of Tax accounting, through negotiation or otherwise(D) materially amend any Tax Return, make any commitment or incur any Liability to any labor organization with respect to any Employeein each case other than in the Ordinary Course of Business;
(viiixii) introduce any material change with respect to the operation of the Business, including make any material change in the typesCompany’s or its Subsidiaries’ respective accounting methods, natureexcept as required by GAAP;
(xiii) enter into or amend any Affiliate Contracts, composition or quality enter into any transactions with Affiliates, except in the Ordinary Course of products Business, that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Securities Act;
(xiv) modify, amend or servicesterminate, orwaive or assign any material rights under any Material Contract or Lease, or enter into any new Contract that would be a Material Contract or Lease, in each case other than in the Ordinary Course of Business;
(xv) adversely modify, amend, or terminate any material Permits, including Environmental Permits, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxvi) enter into adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization or major changes of business operation;
(xvii) set aside, make or pay any transaction dividend or enter intoother distribution, modify payable in cash, stock, property or renew otherwise, with respect to any Contract which by reason of its size the Company’s capital stock;
(xviii) cancel, compromise or otherwise is not settle any Proceeding, except (A) in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permitwhere the amount paid in settlement or compromise is less than $1,000,000 individually or $5,000,000 in the aggregate;
(xiixix) settle waive in writing any material right of the Company or any of its Subsidiaries, including any material write-off or compromise any pending or threatened Legal Proceeding or any claim or claims forof accounts receivable, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementBusiness; or
(xviixx) authorize any of, or commit or agree to do do, anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 3 contracts
Samples: Merger Agreement (Novelis Inc.), Merger Agreement (Aleris Corp), Merger Agreement (Novelis Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain (A) all of the assets and properties of, or used by, of the Company consistent with past practicein their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable laws, including, without limitation, Environmental Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivi) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivvii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the Company except, with respect to the items listed on Schedule 5.2(b)(vii) hereto, as previously consented to by the Purchaser;
(viii) cancel or compromise any debt or claim or waive or release any material right of the Company except in the ordinary course of business;
(ix) enter into any commitment for capital expenditures of the Company in excess of $25,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(x) enter into, modify or terminate any labor or collective bargaining agreement of the Company or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization with respect to the Company;
(vxi) except as provided permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(xii) permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementSeller; or
(xviixiv) agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 2 contracts
Samples: Share Exchange Agreement (Synerteck Inc), Share Exchange Agreement (Bongiovi Entertainment Inc)
Conduct of the Business Pending the Closing. From the date hereof through and including the Closing Date, except (a1) Except as set forth on Schedule 4.1, (2) as required by applicable Law (for which, to the extent practicable, Sellers shall provide prior notice to Buyer), (3) as otherwise expressly provided specifically contemplated by this Agreement Agreement, (4) with respect to the transfer of any Elsevier Retained Assets to any Seller or Affiliate thereof or (5) with the prior written consent of NewcoBuyer, between the date hereof and the Closing, the Company shall:
Sellers (ia) shall conduct the Business Business, and shall cause each MDL Group Company to conduct the Business, only in the Ordinary Course ordinary course of Business;
(ii) business, shall use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business in all material respects, preserve the condition and (B) integrity of the Additional Assets in all material respects and preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
, including the Top Customers and Top Suppliers (iii) maintain (A) all to the extent such Top Suppliers are customers or suppliers, respectively, of the assets and properties of, or used by, Business as of the Company consistent with past practicedate hereof), and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) transfer, issue, sell, encumber or dispose of any equity interests of any MDL Group Company or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests or other securities of or any stock appreciation, phantom stock or other similar right with respect to any MDL Group Company;
(ii) except as contemplated by Section 4.12, effect any recapitalization, reclassification or any other change in the capitalization of any MDL Group Company;
(iii) amend the organizational documents of any MDL Group Company;
(iv) except after consultation with Buyer, hire any new employees into any MDL Group Company or, except in the ordinary course of business, (A) increase the salary annual level of compensation, bonus or any other compensation benefits payable or to become payable by any MDL Group Company to any of any director its directors or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, Employees; (B) grant or increase any bonus, severance, termination pay, benefit or other direct or indirect compensation to any Employee director or director, Employee; or (C) increase the coverage enter into, establish, amend or benefits available under terminate any (employment, consulting, retention, change of control, labor or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensationcollective bargaining, bonus or other incentive compensation, insuranceprofit sharing, pension health or welfare, stock option or other employee benefit plan equity, pension, retirement, vacation, severance or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement agreement, or any other plan, agreement, program, policy or arrangement with for the benefit of Employees that would constitute an Employee Benefit Plan, to which any directors MDL Group Company would be a party or officers of otherwise would have any liability or potential liability except to the Company (or amend extent any such agreement) to which the Company action is a party; or (E) pay or make any dividend or distribution of cash or other property taken with respect to the units or other equity interests similarly situated employees of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected Related Persons who participate in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Companyan Employee Benefit Plan;
(v) except make any material change in any method of accounting or accounting practice, other than in accordance with the Seller Accounting Principles or as provided in Section 6.6 hereof, required by applicable Law;
(vi) permit any MDL Group Company to enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not engage in or acquire any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
other person (vi) cancel whether by merger, stock purchase, asset purchase or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Businessotherwise);
(vii) enter into, modify into any contract or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to the Business, the Assets or the Additional Assets not in the ordinary course of business or create or permit to be created any EmployeeEncumbrance with respect to the Business, the Assets or the Additional Assets, other than Permitted Encumbrances;
(viii) introduce sell or otherwise dispose of any material change with respect to the operation portion of the Business, including the Assets or the Additional Assets or make any material change commitment to do so, not in the types, nature, composition or quality ordinary course of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsbusiness;
(ix) enter into any transaction contract or enter intocommitment which (i) imposes any material restriction on the ability of any MDL Group Company to compete in any business or activity within a certain geographic area, modify or renew pursuant to which any Contract benefit or right is required to be given or lost as a result of so competing, (ii) which by reason grants any material exclusive license, supply or distribution agreement or other exclusive rights, (iii) which grants any material “most favored nation”, rights of first refusal, rights of first negotiation or similar rights with respect to any product, service or Intellectual Property Right, (iv) requires the purchase of all or substantially all or a given portion of the Business’ requirements from a given third party which is material to the Business, or (v) would have any of the foregoing effects on Buyer or any of its size or otherwise is not in Affiliates after the Ordinary Course of BusinessClosing;
(x) enter into incur, assume, guarantee or extend any ContractIndebtedness, understanding or commitment that restrains, restricts, limits or impedes except in the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line ordinary course of business in consistent with past practice or which will be reflected as an Intercompany Balance or any geographic area debt owed to any Seller or solicit the employment of any personstheir Affiliates which will be eliminated at Closing;
(xi) terminate, amend, restate, supplement create or waive suffer to incur any rights under Encumbrance on any (A) Material Contract, Real Property Lease, Personal Property Lease Asset or Intellectual Property License, any Additional Asset other than in the Ordinary Course of Business or (B) PermitPermitted Encumbrances;
(xii) settle except as contemplated by Section 4.12, lend money to any person (other than routine travel advances made to employees in the ordinary course of business), or compromise incur or guarantee any pending or threatened Legal Proceeding indebtedness for borrowed money or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000long-term indebtedness;
(xiii) change enter into or modify its creditbecome bound by, collection or payment policiespermit any of the assets owned or used by the Business to become bound by, procedures any Material Contract, or practicesamend or terminate, including acceleration or waive or exercise any material right or remedy under, any Material Contract except renewals of collections or receivables (whether or not Material Contracts with Top Customers and Top Suppliers made in the ordinary course of business consistent with past due) or fail to pay or delay payment of payables or other liabilitiespractice;
(xiv) take any action which would adversely affect fail to maintain adequate insurance coverage with respect to the ability of Business and the parties to consummate the transactions contemplated by this AgreementAdditional Assets at levels consistent with past practice;
(xv) amend settle, or offer or propose to settle, any material litigation, investigation, arbitration, proceeding or other claim involving or against the operating agreement of the CompanyBusiness;
(xvi) agree make, amend or change any Tax election, change an annual accounting period, adopt or change any accounting method, make a request for a tax ruling or surrender any right to materially increase Liabilities from claim a refund of Taxes to any of the amounts set forth on MDL Group Companies, file any amended Tax Return or any amendment to any previously filed Tax returns (which may adversely affect any of Buyer, the Balance Sheet except in MDL Group Companies or any of their respective Affiliates for any period ending after the Ordinary Course Closing Date), or enter into any closing agreement or settle or compromise any Tax liability, claim or assessment (which may adversely affect any of Business under loan Buyer, the MDL Group Companies or credit agreements or arrangements up to any of their Affiliates for any period ending after the maximum amounts and other terms as in effect on the date of this AgreementClosing Date); or
(xvii) agree enter into any contract or letter of intent to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company4.1.
Appears in 2 contracts
Samples: Sale Agreement (Accelrys, Inc.), Sale Agreement (Symyx Technologies Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (I) as set forth on Schedule 7.2(a), (II) as required by applicable Law, (III) as otherwise expressly provided contemplated by this Agreement or (IV) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the Company shall, and shall cause the Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;; and
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the CompanySubsidiaries.
(b) Without limiting the generality of the foregoingExcept (I) as set forth on Schedule 7.2(b), except (II) as required by applicable Law, (III) as otherwise expressly provided contemplated by this Agreement or (IV) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, delayed or conditioned), the Company shall not, and shall not permit the Subsidiaries to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(ii) issue or sell any shares of capital stock or other securities of the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company or any of the Subsidiaries;
(iii) effect any recapitalization, reclassification or like change in the capitalization of the Company or any of the Subsidiaries;
(iv) amend the certificate of incorporation or by-laws of the Company or any of the Subsidiaries;
(v) (A) materially increase the salary or other annual level of compensation of any director or Employee executive officer of the Company except for normal year-end increases in or any of the Ordinary Course of BusinessSubsidiaries, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director or directorexecutive officer, (C) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives employees of the Company or any of the Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or any of the Subsidiaries is a party; party or (E) pay or make involving any dividend or distribution of cash or other property with respect to the units or other equity interests employee of the Company;
(ii) (A) createCompany or any of the Subsidiaries, incurexcept, assumein each case, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed as required by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonCompany Benefit Plans;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvi) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets of the Company or any of the Subsidiaries (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) Business or for the purpose of the Companydisposing of obsolete or worthless assets);
(vvii) except as provided other than in Section 6.6 hereofthe Ordinary Course of Business, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any material debt or claim, claim or waive or release any material right of the Company except in or any of the Ordinary Course of BusinessSubsidiaries;
(viiviii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation negotiations or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsorganizations;
(ix) enter into or agree to enter into any transaction merger or enter intoconsolidation with any corporation or other entity, modify or renew acquire the securities of any Contract which by reason of its size or otherwise is not in the Ordinary Course of Businessother Person;
(x) enter into or modify any Contract, understanding Contract with any Stockholder or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment Affiliate of any personsStockholder;
(xi) terminateexcept to the extent required by Law, amendmake or rescind any material election relating to Taxes or settle or compromise any claim, restateinvestigation, supplement audit or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course controversy relating to a material amount of Business or (B) PermitTaxes;
(xii) settle except to the extent required by Law or compromise GAAP, make any pending material change to any of its methods of accounting or threatened Legal Proceeding methods of reporting revenue and expenses or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000accounting practices;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take incur any action Liability which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of will be categorized as a Noncurrent Liability on the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement’s balance sheet; or
(xviixiv) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2(b).
Appears in 2 contracts
Samples: Stock Purchase Agreement (Sixx Holdings Inc), Stock Purchase Agreement (Bailey Lee Ann)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by The Seller covenants and agrees that between the date of this Agreement and the Closing, unless the Purchaser shall otherwise consent in writing (which consent shall not be unreasonably withheld), (i) the business of the Seller and its Subsidiaries shall be conducted only in, and the Seller and its Subsidiaries shall not take any action except in, the ordinary course of business and in a manner consistent with prior practice, (ii) the Seller and its Subsidiaries shall use reasonable best efforts to preserve intact their business organizations, to keep available the services of their current officers and employees and to preserve the current relationships of the Seller and its Subsidiaries with customers, suppliers and other persons with which the Seller or its Subsidiaries has business relations, and (iii) the Seller and its Subsidiaries will comply with all applicable Laws and regulations wherever its business is conducted, including, without limitation, the timely filing of all reports, forms or other documents with the SEC required pursuant to the Securities Act or the Exchange Act. Without limiting the foregoing, neither the Seller nor any of its Subsidiaries shall, except in the ordinary course of business consistent with past practice as of December 31, 1999, (i) materially reduce the expenses of the Seller or its Subsidiaries relating to sales or customer service or support, (ii) materially discount the price or materially alter the terms of any of the Seller's or its Subsidiaries' products or services, (iii) reduce or discount any accounts receivable of the Seller or any Subsidiary to accelerate collection of such accounts receivable or sell or factor any accounts receivable of the Seller or any Subsidiary, or (iv) manage the accounts payable of the Seller or any Subsidiary in a manner inconsistent with the Seller's past practice as of December 31, 1999.
(b) The Seller covenants and agrees that between the date of this Agreement and the Closing the Seller shall not, nor shall the Seller permit any of its Subsidiaries, without the prior written consent of Newcothe Purchaser, between the date hereof and the Closing, the Company shall:
to (i) conduct declare or pay any dividends on or make other distributions (whether in cash, stock or property) in respect of any of its capital stock, except for dividends by a wholly owned Subsidiary of the Business only in Seller to the Ordinary Course Seller or another wholly owned Subsidiary of Business;
the Seller, (ii) use split, combine or reclassify any of its commercially reasonable efforts to (A) preserve capital stock or issue or authorize or propose the present business operationsissuance of any other securities in respect of, organization (including officers and Employees) and goodwill in lieu of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
or in substitution for shares of its capital stock; (iii) maintain repurchase or otherwise acquire any shares of its capital stock; (Aiv) all of issue, deliver or sell, or authorize or propose the assets and properties issuance, delivery or sale of, any shares of its capital stock or used byany securities convertible into any such shares of its capital stock, or any rights, warrants or options to acquire any such shares or convertible securities or any stock appreciation rights, phantom stock plans or stock equivalents, other than the Company consistent with past practice, and issuance of shares of Seller Common Stock upon (Bx) insurance upon all the exercise of the assets and properties Seller Options outstanding as of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
, (ivy) (A) maintain the books, accounts and records exercise of warrants outstanding as of the Company date of this Agreement or (z) the issuance of options to purchase Seller Common Stock described in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations Section 3.7 of the Company;
Seller Disclosure Letter (the allocation of which is subject to the prior approval of the Purchaser) or (v) comply with the capital expenditure plan take any action that would, or could reasonably be expected to, result in any of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times conditions set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the CompanyArticle VI not being satisfied.
(bc) Without limiting The Seller covenants and agrees that between the generality date of the foregoing, except as otherwise expressly provided by this Agreement or with and the Closing the Seller shall not, nor shall the Seller permit any of its Subsidiaries to, without the prior written consent of Newcothe Purchaser, which consent shall not be unreasonably withheld (such response shall be made within five (5) business days of receipt by the Company Purchaser of notice of such request (or two (2) business days in the case of clauses (xvii), (xix) and (xx) below), otherwise consent shall not:
be deemed to have been given) (i) amend its articles of incorporation (including any certificate of designations attached thereto) or bylaws or other equivalent organizational documents; (ii) create, assume or incur any indebtedness for borrowed money or guaranty any such indebtedness of another person, other than (A) increase the salary borrowings under existing lines of credit (or other compensation under any refinancing of any director such existing lines) or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonusindebtedness owing to, benefit or other direct guaranties of indebtedness owing to, the Seller or indirect compensation to any Employee or director, (C) increase guarantees, loans or advances to employees less than $5,000 to an individual employee and $20,000 in the coverage aggregate with respect to business travel expenses in the ordinary course of business consistent with past practice; (iii) accelerate the timing of payments of any outstanding indebtedness for borrowed money; (iv) make any loans or benefits available under advances to any other person other than loans or advances between any Subsidiaries of the Seller or between the Seller and any of its Subsidiaries (other than guarantees, loans or create any newadvances to employees less than $5,000 to an individual employee and $20,000 in the aggregate with respect to business travel expenses in the ordinary course of business consistent with past practice); (v) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus mortgage or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with pledge any of the directors, officers, Employees, agents Assets; (vi) merge or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement consolidate with any directors other entity in any transaction, or officers of sell any business or Assets other than with respect to customer agreements approved in writing by the Company Purchaser (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property than with respect to the units or other equity interests sale of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected assets identified in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of BusinessSection 1.3(m) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
Seller Disclosure Letter); (vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
change its accounting policies except as required by GAAP; (viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications employment terms for any of its directors or prices or terms of distributions of such products;
officers; (ix) alter, amend or create any obligations with respect to compensation, severance, benefits, change of control payments or any other payments to employees, directors or Affiliates of the Seller or its Subsidiaries or enter into any transaction new, or enter intoamend any existing, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
employment agreements; (x) enter into make any Contract, understanding or commitment that restrains, restricts, limits or impedes change to the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
Seller Benefit Plans; (xi) terminate, amend, restate, supplement amend or waive cancel or agree to the amendment or cancellation of any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease Assumed Contract or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or enter into a contract that would result have been an Assumed Contract had such contract been in a loss existence as of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixii) agree to do anything pay, loan or advance (Aother than the payment of compensation, directors' fees or reimbursement of expenses in the ordinary course of business) prohibited by this Section 6.2any amount to, or sell, transfer or lease any properties or assets (Breal, personal or mixed, tangible or intangible) that would make to, or enter into any agreement with, any of the representations and warranties of the Company in this Agreement its officers or directors or any Affiliate or Associate of the Company Documents untrue or incorrect in any material respect or could result in any of its officers or directors; (xiii) form or commence the conditions to the Closing not being satisfied operations of any business or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.any corporation, partnership, joint venture, business association or other business organization or division thereof;
Appears in 2 contracts
Samples: Asset Purchase Agreement (Phoenix International LTD Inc), Asset Purchase Agreement (London Bridge Software Holdings PLC)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoBuyer, between the date hereof and the Closing, Sellers and the Company and each of the Subsidiaries shall:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and the Subsidiaries and (B) preserve the present relationships with Persons having business dealings with the Company and the Subsidiaries (including customers clients, customers, suppliers and suppliersservice providers);
(iii) use commercially reasonable efforts to ensure that each Contract entered into after the date of this Agreement will not require the procurement of any consent, waiver or novation or provide for any material change in the obligations of any party hereto in connection with, or terminate as a result of the consummation of, the transactions contemplated hereby, and give reasonable advance notice to Buyer before allowing any Material Contract or material right thereunder to lapse or terminate by its terms;
(iv) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceand the Subsidiaries in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company and the Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(ivv) (A) maintain the books, accounts and records of the Company and the Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the Company;
Company and the Subsidiaries, and (vD) comply make each insurance claim in relation to the Company and the Subsidiaries promptly and in accordance with the capital expenditure plan requirements of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)relevant policy, including making such capital expenditures except if Buyer agrees otherwise in the amounts and at the times set forth in such plan;writing; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement on Schedule 6.2(b) or with the prior written consent of NewcoBuyer, the Company and the Subsidiaries shall not:
(i) (A) increase the salary issue any notes, bonds or other compensation of debt securities or any director capital stock or Employee of the Company other equity securities or any securities convertible, exchangeable or exercisable into any capital stock or other equity securities;
(ii) borrow any amount or incur or become subject to any material Liabilities, except for normal year-end increases current Liabilities incurred in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any advances on existing revolving lines of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred credit in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter and Liabilities under Contracts entered into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(viiiii) enter intodischarge or satisfy any material Lien, modify pay any material Liability or terminate waive or release any labor material right of any of the Company or collective bargaining agreement or, through negotiation the Subsidiaries other than current Liabilities paid in the Ordinary Course of Business;
(iv) declare or otherwise, make any commitment payment or incur any Liability distribution of cash or other property to any labor organization its shareholders with respect to its capital stock or other equity securities or purchase, redeem or otherwise acquire, directly or indirectly, any Employeeshares of its capital stock or other equity securities (including, without limitation, any warrants, options or other rights to acquire its capital stock or other equity securities);
(viiiv) introduce mortgage or pledge any of its properties or assets or subject them to any material change with respect to the operation Lien, except Liens for current property Taxes not yet due and payable;
(vi) sell, assign or transfer any of the Businessits tangible assets, including any material change in the types, nature, composition or quality of products or services, or, other than except in the Ordinary Course of Business, make or cancel any change in product specifications material debts or prices or terms of distributions of such productsclaims;
(ixvii) enter into acquire, license, disclose, sell, assign or transfer any transaction Intellectual Property rights, or enter intodisclose any material Confidential Information to any Person without obtaining an agreement, modify in usual and customary form and substance, from such Person protecting the confidentiality of such Confidential Information;
(viii) suffer any extraordinary losses or renew waive any Contract which by reason rights of its size material value, whether or otherwise is not in the Ordinary Course of Business;
(ix) make any single capital expenditure or commitment in excess of 10,000 or capital expenditures or commitments that aggregate in excess of $20,000;
(x) enter into make any Contractloans or advances, understanding or commitment that restrainsincluding recruiting inducements, restrictsto, limits or impedes guarantees for the ability of the Businessbenefit of, or the ability of Newco or Purchaserany investments in, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsPersons;
(xi) terminatesuffer any damage, amenddestruction or casualty loss exceeding, restatein the aggregate, supplement $25,000 whether or waive not covered by insurance;
(xii) make any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, investment other than in the Ordinary Course of Business or organize any subsidiary;
(xiii) enter into any other transaction, other than in the Ordinary Course of Business;
(xiv) make any payments for political contributions or make any bribes, kickback payments or other illegal payments;
(xv) hire or appoint any Employee, officer, Independent Contractor, or advisor;
(xvi) increase any officer’s or Employee’s compensation, incentive arrangements or other benefits;
(xvii) amend its articles of incorporation or bylaws or comparable governing documents;
(xviii) directly or indirectly engage in any transaction, arrangement or Contract with any officer, director, manager, partner, shareholder or other insider or Affiliate which is not at arm’s length;
(xix) transfer, issue, sell, pledge, encumber or dispose of the equity interests or other securities of, or other ownership interests in, the Company or the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests or other securities of, or other ownership interests in, the Company or the Subsidiaries;
(xx) effect any recapitalization, reclassification, stock split, combination or like change in its capitalization, or amended the terms of any of its outstanding securities;
(xxi) make a change in its accounting or Tax reporting principles, methods or policies;
(xxii) (A) make, change or revoke any Tax election (other than the Tax election described in Section 8.7(f) of this Agreement), settle or compromise any Tax Claim or Liability or enter into a settlement or compromise, or change (or make a request to any Taxing Authority to change) any material aspect of its method of accounting for Tax purposes, or (B) Permitprepare or file any Tax Return (or any amendment thereof) unless such Tax Return shall have been prepared in a manner consistent with past practice and the Company and the Subsidiaries provided Buyer a copy thereof (together with supporting papers) at least three (3) Business Days prior to the due date thereof for Buyer to review and approve (such approval not to be unreasonably withheld or delayed);
(xiixxiii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,00015,000;
(xiiixxiv) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesLiabilities;
(xivxxv) take amend any action which would adversely affect the ability of the parties insurance contract or fail to consummate the transactions contemplated by this Agreementnotify any insurance claim;
(xvxxvi) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet amend, modify or terminate any Plan, except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementextent an amendment was required to comply with applicable Law; or
(xviixxvii) agree to do anything (A) prohibited by this Section 6.2, or (B) that which would make any of the representations and warranties of the Company Company, the Subsidiaries or Sellers in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyrespect.
Appears in 2 contracts
Samples: Stock Purchase Agreement (Blucora, Inc.), Stock Purchase Agreement (Blucora, Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Seller shall use their best efforts, and shall cause the Company shallto:
(i) conduct Conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures or the purchase of assets out of the ordinary course in excess of $5,000;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection the Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 2 contracts
Samples: Stock Purchase Agreement (Thalia Woods Management, Inc.), Stock Purchase Agreement (Dukes Owen Richard)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing and further to any obligations as debtors-in-possession under the Bankruptcy Code and except (1) as set forth on Schedule 8.2(a), (2) as required by applicable Law, (3) as otherwise expressly provided contemplated by this Agreement or (4) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the Company Sellers shall:
(i) use commercially reasonable efforts to maintain the Purchased Assets in the Ordinary Course of Business, pay expenses and payables, xxxx customers, collect receivables, purchase Inventory, repair and continue normal maintenance (normal wear and tear excepted) and otherwise conduct the Business only in the Ordinary Course of Business;
(ii) (A) comply in all material respects with all Laws and Assumed Contracts and Assumed Executory Contracts, (B) maintain all existing Permits applicable to the Business, and (C) pay all applicable Taxes as such Taxes become due and payable;
(iii) Use commercially reasonable efforts to maintain working capital and current asset and current liability levels consistent with those reflected in the Sellers’ financial statements previously provided to Purchaser;
(iv) maintain in full force and effect all Purchased Intellectual Property;
(v) utilize commercially reasonable efforts to pursue Section 363 of the Bankruptcy Code sales processes and to comply at all times with the Plan and the Confirmation Order;
(vi) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business and (B) preserve the present relationships with Persons having business dealings customers and suppliers of the Business; and
(vii) promptly inform Purchaser in writing of the occurrence or non-occurrence of any event known to any Seller which would cause the condition set forth in Section 10.1(a) not to be satisfied or the breach of any covenant hereunder by any Seller.
(b) Subject to any obligations as debtors-in-possession under the Bankruptcy Code and except (1) as set forth on Schedule 8.2(b), (2) as required by applicable Law, (3) as otherwise contemplated by this Agreement or (4) with the Company prior written consent of Purchaser, no Seller shall solely as it relates to the Business:
(including customers and suppliersi) modify or amend, in any material respect, or terminate any Material Contract or waive, release or assign any material rights or claims thereunder;
(ii) enter into any contract or transaction relating to the purchase of assets primarily for use in the Business in excess of fifty thousand dollars ($50,000);
(iii) maintain (A) all increase salaries or wages, declare bonuses, increase compensation or benefits or institute any new employment arrangement, benefit plan or program with respect to any Employee, except as required by law, as required by the terms of the assets and properties of, previously existing Employee Plans or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and except that Sellers can declare or pay accounts payable and other Liabilities set forth on bonuses or enter into deferred compensation or similar arrangements in connection with the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations retention of the Companycontinued services of directors, employees or consultants;
(viv) comply with the capital expenditure plan sell, lease, transfer, mortgage, encumber, alienate or dispose of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company Purchased Assets except for normal year-end increases sales of Inventory in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;and
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.28.2.
(c) Prior to the Closing, (B) that would make each of the Sellers shall take any and all necessary actions to transfer, assign, record or perfect in its name record title to any of its Purchased Assets that is not presently held or recorded in its name, including, without limitation, filing any necessary notices of assignment in the representations United States Patent and warranties of the Company in this Agreement Trademark Office or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect United States Copyright Office, as applicable, with respect to the CompanyPurchased Intellectual Property.
Appears in 2 contracts
Samples: Asset Purchase Agreement (New Century Energy Corp.), Asset Purchase Agreement (New Century Energy Corp.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain (A) all of the assets and properties of, or used by, of the Company consistent with past practicein their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable laws, including, without limitation, Environmental Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) amend the certificate of incorporation or by-laws of the Company;
(v) (A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivi) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivvii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the Company except, with respect to the items listed on Schedule 5.2(b)(vii) hereto, as previously consented to by the Purchaser;
(viii) cancel or compromise any debt or claim or waive or release any material right of the Company except in the ordinary course of business;
(ix) enter into any commitment for capital expenditures of the Company in excess of $25,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(x) enter into, modify or terminate any labor or collective bargaining agreement of the Company or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization with respect to the Company;
(vxi) except as provided permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(xii) permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementSeller; or
(xviixiv) agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 2 contracts
Samples: Share Exchange Agreement (Havana Furnishings Inc.), Share Exchange Agreement (Offline Consulting Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain (A) all of the assets and properties of, or used by, of the Company consistent with past practicein their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable laws, including, without limitation, Environmental Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivi) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivvii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the Company except as previously consented to by the Purchaser;
(viii) cancel or compromise any debt or claim or waive or release any material right of the Company except in the ordinary course of business;
(ix) enter into any commitment for capital expenditures of the Company in excess of $25,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(x) enter into, modify or terminate any labor or collective bargaining agreement of the Company or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization with respect to the Company;
(vxi) except as provided permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(xii) permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementSeller; or
(xviixiv) agree to do anything (A) prohibited by this Section 6.2, (B) that or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 2 contracts
Samples: Share Exchange Agreement (Armitage Mining Corp), Share Exchange Agreement (Armitage Mining Corp)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by The Company covenants and agrees that, during the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement or with the prior written Closing unless the Investors otherwise consents in writing (which consent of Newcoshall not be unreasonably withheld, between the date hereof and the Closing, conditioned or delayed) the Company shall:
, and shall cause each of its Subsidiaries to, (i) conduct the Business its business only in the Ordinary Course of Business;
ordinary course and consistent with past practice; (ii) use commercially reasonable best efforts to preserve and maintain its assets and properties and its relationships with its customers, suppliers, advertisers, distributors, agents, officers and employees and other persons with which it has significant business relationships; (iii) use its commercially reasonable best efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the material assets and properties of, it owns or used by, uses in the Company ordinary course of business consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
; (iv) (A) maintain use its commercially reasonable best efforts to preserve the books, accounts goodwill and records ongoing operations of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
its business; (v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures maintain its books and records in the amounts usual, regular and at the times set forth in such plan;
ordinary manner, on a basis consistent with past practice; and (vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance . Notwithstanding the forgoing and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided contemplated by this Agreement or with the prior written Transaction Agreements or as consented to by the Investors in writing (which consent shall not be unreasonably withheld, conditioned or delayed), during the period from the date of Newcothis Agreement through and including the Closing Date, the Company shall not, and shall not permit any of its Subsidiaries to:
(a) (i) (A) increase split, combine or reclassify any of its capital stock or issue or authorize the salary or other compensation issuance of any director other securities in respect of, in lieu of or Employee in substitution for shares of its capital stock, or (ii) purchase, redeem or otherwise acquire any capital stock in the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directorsSubsidiaries or any other securities thereof or any rights, officers, Employees, agents warrants or representatives of the Company or otherwise modify or amend or terminate options to acquire any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash shares or other property with respect securities, except in the ordinary course of business pursuant to the units or other equity interests of the Company's employee benefit plans;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(vb) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except set forth in the Ordinary Course disclosure letter of Business;
(vii) enter intoeven date herewith, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties that is reasonably likely to consummate the transactions contemplated by this Agreement;
result in (xvi) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company set forth in this Agreement Article IV becoming false or any of the Company Documents untrue or incorrect inaccurate in any material respect as of, or could result in at any time prior to, the Closing Date or (ii) any of the conditions to the Closing obligations of each Investor set forth in Section 7.2 not being satisfied satisfied;
(c) amend the charter, bylaws or other comparable organizational documents of the Company in a manner likely to adversely affect any Investor; or
(Cd) that could agree to take, any of the foregoing actions. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not be reasonably expected prevented from, or obligated to have a Material Adverse Effect obtain the consent of the Investors prior to, (i) issuing shares of its capital stock or entering into agreements with respect thereto, including with respect to the Companyregistration rights, or (ii) engaging in any merger, acquisition or business combination transaction.
Appears in 2 contracts
Samples: Investment Agreement (Global Signal Inc), Investment Agreement (Fortress Investment Holdings LLC)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 7.2(a), (ii) for any exercise of Options existing as of the date hereof, (iii) as required by applicable Law, (iv) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoParent (which consent shall not be unreasonably withheld, between the date hereof and the Closingconditioned or delayed), the Company shall:
, and shall cause each of its Subsidiaries, to use commercially reasonable efforts to (iA) conduct the Business respective businesses and operations of the Company and its Subsidiaries only in the Ordinary Course of Business;
Business in all material respects; (iiB) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present material relationships with Persons having business dealings with the Company and/or its Subsidiaries (including customers and suppliers);
; (iiiC) maintain in the Ordinary Course of Business in all material respects (A1) all of the assets and properties of, or used by, the Company consistent with past practiceor its Subsidiaries in their current condition, ordinary wear and tear excepted, and (B2) insurance upon all of the properties and assets and properties of the Company in all material respects and its Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;this
(iv) (A1) maintain the books, accounts and records of the Company and its Subsidiaries in the Ordinary Course of Business, (B2) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and procedures, without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line otherwise in the Ordinary Course of creditBusiness, and (C3) comply in all material respects with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures and its Subsidiaries in the amounts Ordinary Course of Business in all material respects; and at the times set forth in such plan;
(viE) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except (i) as set forth on Schedule 7.2(b), (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoParent (which consent shall not be unreasonably withheld, delayed or conditioned), the Company shall not, and shall not permit its Subsidiaries to:
(i) except for the issuance of shares of capital stock pursuant to the exercise of Options existing as of the date hereof, issue, pledge, encumber, or sell any shares of capital stock or other securities of the Company or any of its Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company or any of its Subsidiaries;
(ii) amend the Company Charter Documents or any Subsidiary Charter Documents or effect any stock split, reverse stock split, stock dividend (including any dividend or distribution or securities convertible into capital stock), reorganization, reclassification, combination, recapitalization or other like change with respect to shares of capital stock of the Company or any of its Subsidiaries or otherwise amend any terms of any shares or series of capital stock of the Company or any of its Subsidiaries;
(iii) except as set forth in Schedule 7.2(b), or as otherwise required by the terms of any Company Benefit Plan set forth on Schedule 5.13(a), (A) increase the salary compensation or other compensation benefits of any director director, officer, employee or Employee consultant of the Company or any of its Subsidiaries (except for normal yearincreases in salaries and wages of non-end increases officer employees in the Ordinary Course of BusinessBusiness and other than for payments of Permitted Bonuses), (B) grant accelerate the vesting or payment of any bonus, compensation or benefit under any Company Benefit Plan (other than the acceleration of vesting of Options or other direct or indirect compensation to any Employee or directorequity securities), (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or any of its Subsidiaries is a party; party or involving any employee, consultant or director of the Company or any of its Subsidiaries (other than for payments of Permitted Bonuses) or (ED) pay adopt, amend or make terminate any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyCompany Benefit Plans;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (Biv) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease lease, rent or otherwise dispose (including cancel or compromise any debt or claim or waive or release any material right) of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) material properties or assets of the CompanyCompany or any of its Subsidiaries;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into make any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution toto or investment in any Person (other than (A) loans, advances or otherwise acquire the securities of any Person;
(vi) cancel capital contributions to or compromise any debt or claim, or waive or release any material right investments in a Subsidiary of the Company except in the Ordinary Course of BusinessBusiness and (B) routine advances to employees for business expenses in the Ordinary Course of Business in an amount not exceeding $10,000 to any individual employee);
(viivi) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation negotiations or otherwise, make any commitment or incur any Liability liability to any labor organization organizations;
(vii) enter into or agree to enter into any merger or consolidation with any corporation or other entity, or acquire the securities or any division, business or all or substantially all of the assets of any other Person;
(viii) except to the extent required by Law, make, change or rescind any election relating to Taxes, adopt or change any method of Tax accounting in respect of Taxes, file any amended Tax Return in respect of Taxes, or settle or compromise any claim, investigation, audit or controversy relating to Taxes, agree to an extension or waiver of the statute of limitations with respect to the assessment or determination of Taxes, enter into any closing agreement with respect to any EmployeeTax, surrender any right to claim a Tax refund, offset or other reductions in Tax liability, change any Tax accounting period, obtain a Tax ruling, prepare or file any material Tax Return or claim of refund (unless consistent with past practice and Parent reviews and consents to such filing or claim), enter into any Tax sharing agreement (excluding any agreements whose principal subject matter is not Taxes), or enter into any intercompany transaction giving rise to deferred gain or loss of any kind, in each case if such action could reasonably be expected to materially increase Taxes in a Post-Closing Tax Period;
(viiiix) except to the extent required by Law or GAAP, make any material change to any of its methods of accounting or methods of reporting revenue and expenses or accounting practices;
(x) grant any licenses under any Intellectual Property of the Company and its Subsidiaries (other than non-exclusive licenses granted in the Ordinary Course of Business);
(xi) incur (A) any Indebtedness (other than borrowings in the Ordinary Course of Business under the Company’s existing credit facilities) or (B) any Lien (other than Permitted Exceptions) on any asset or properties (whether tangible or intangible) of the Company or any of its Subsidiaries (other than purchase money security interests in connection with the acquisition of equipment in the Ordinary Course of Business);
(xii) enter into any commitment for capital expenditures of the Company or any Subsidiaries in excess of $100,000 for any individual commitment or $500,000 for all commitments in the aggregate;
(xiii) introduce any material change with respect to the operation of the BusinessCompany or any Subsidiary, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any material change in product specifications or prices or terms of distributions of such productsproducts or materially change its pricing, discount, allowance or return policies or grant any material pricing, discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(xxiv) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, Company or the ability of Newco or Purchaser, any Subsidiary to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsPersons;
(xixv) other than pursuant to the express terms of such Contract or to the extent not material and in the Ordinary Course of Business, terminate, amend, restate, supplement or waive any material rights under any (A) Material Significant Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business Customer License Agreement or (B) Permit;
(xiixvi) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000500,000;
(xiiixvii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables any required maintenance or other liabilities;
(xiv) take similar fees or otherwise fail to make required filings or payments required to maintain and further prosecute any action which would adversely affect the ability applications for registration of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementIntellectual Property; or
(xviixviii) agree or commit in writing to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2(b).
Appears in 2 contracts
Samples: Merger Agreement, Merger Agreement (Verint Systems Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (I) as required by applicable Law, (II) as otherwise expressly provided contemplated by this Agreement or (III) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between delayed or conditioned, unless the date hereof and action to be taken by the ClosingCompany would be reasonably expected to have a Material Adverse Effect), the Company shall, and shall cause the Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and the Subsidiaries, and (B) preserve the present relationships with Persons having business dealings customers and suppliers of the Company and the Subsidiaries; and
(iii) willfully do any other act which, or fail to take any reasonable action which failure, would cause any representation or warranty of the Company or any Seller in this Agreement (without giving effect to any materiality limitations set forth therein) to become untrue in any material respect.
(b) Without limiting Section 8.2(a) above, except (I) as required by applicable Law, (II) as otherwise contemplated by this Agreement or (III) with the prior written consent of Purchaser, prior to the Closing, the Company shall not, and shall not permit the Subsidiaries to:
(including customers and suppliers)i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other Equity Securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other Equity Securities of the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other Equity Securities of the Company or any of the Subsidiaries;
(iii) maintain (A) all of effect any recapitalization, reclassification or like change in the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties capitalization of the Company in such amounts and or any of such kinds comparable to that in effect on the date of this AgreementSubsidiaries;
(iv) except as provided in Section 8.15, amend the certificate of incorporation or by-laws or comparable organizational documents of the Company or any of the Subsidiaries;
(v) (A) maintain increase the books, accounts and records annual level of compensation of any director or executive officer of the Company or any of the Subsidiaries, (B) other than in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on materially increase the Balance Sheet in the Ordinary Course annual level of Business utilizing normal procedures and without discounting compensation of any Employee who is not a director or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditexecutive officer, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directorEmployee, (CD) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Company Benefit Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or any of the Subsidiaries is a party; party or (E) pay involving a director or make any dividend or distribution of cash or other property with respect to the units or other equity interests executive officer of the Company;
(ii) (A) createCompany or any of the Subsidiaries, incurexcept, assumein each case, guarantee, endorse as required by applicable Law from time to time in effect or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonCompany Benefit Plans;
(iiivi) subject to any Lien Lien, any of the Assets of the Company or otherwise encumber orany of the Subsidiaries, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased material properties or Assets of the Company and the Subsidiaries (except for fair consideration sales of inventory in the Ordinary Course of Business) of the Company);
(vviii) except as provided other than in Section 6.6 hereofthe Ordinary Course of Business, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any material debt or claim, claim or waive or release any material right of the Company except in or any of the Ordinary Course of BusinessSubsidiaries;
(viiix) enter into any commitment for capital expenditures of the Company and the Subsidiaries in excess of $100,000 for any individual commitment and $250,000 for all commitments in the aggregate other than (a) such commitments for capital expenditures that are fully paid prior to Closing or (b) such commitments in respect of capital expenditures included in the CapEx Budget;
(x) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation of the Company or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employeeof the Subsidiaries;
(viiixi) introduce permit the Company or any of the Subsidiaries to acquire by merger or consolidation with, or merge or consolidate with, or purchase all or substantially all of the Assets of, or otherwise acquire any material Assets or business of, any Person, business, business unit, division or facility;
(xii) change with respect to the operation any of the BusinessCompany’s or any of its Subsidiaries’ accounting methods, principles or practices unless required by GAAP;
(xiii) revalue any of the Assets, including any material change in the types, nature, composition writing off receivables or quality of products or services, orreserves, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxiv) enter into any transaction or enter into, modify extend, materially and adversely modify, or renew terminate any Contract which by reason of its size Material Contract, other than customer or otherwise is not supplier contracts in the Ordinary Course of Business;
(xxv) enter into (A) sell, assign, transfer, convey, lease, mortgage, pledge or otherwise dispose of or encumber any Contractmaterial Assets or any interests therein other than to secure Indebtedness, understanding except for sales of finished goods inventory or commitment that restrainsobsolete Assets in the ordinary course of business consistent with past practice or (B) sell, restricts, limits assign or impedes the ability transfer any Assets to any of the Business, Sellers or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personstheir Affiliates;
(xixvi) terminatefail to expend funds for capital expenditures or commitments in accordance with the CapEx Budget;
(xvii) make any material loans or advances to any Person, amendor, restateexcept for expenses incurred in the Ordinary Course of Business, supplement to any employee of the Company or waive any rights under any of its Subsidiaries;
(Axviii) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, collect accounts receivable and pay accounts payable other than in the Ordinary Course of Business or (B) PermitBusiness;
(xiixix) fail to maintain the material Assets of the Company and each of its Subsidiaries in substantially their current state of repair, excepting normal wear and tear;
(xx) amend any Tax Return, make or rescind any material election relating to Taxes, settle or compromise any pending claim, action, suit, litigation, proceeding, arbitration, investigation, audit or threatened Legal Proceeding controversy relating to Taxes, make any material change to any of its methods of accounting or methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the preparation of its most recent Tax Return or consent to any extension or waiver of the limitation period applicable to any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected assessment relating to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementTaxes; or
(xviixxi) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company8.2.
Appears in 2 contracts
Samples: Stock Purchase Agreement (UCI Holdco, Inc.), Stock Purchase Agreement (United Components Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, between from the date hereof and until the ClosingClosing Date, the Seller will (and will cause the Company shall:to):
(ia) conduct operate the Business only in the Ordinary Course of Business to the best of their ability and not engage in any transaction outside of the Ordinary Course of Business;
(iib) provide the Purchaser with unaudited consolidated balance sheets of the Seller and its subsidiaries as of the last day of each month between the Effective Date and the Closing, and the related unaudited statements of operations, cash flows and members’ equity for the year-to-date period then ended, no later than thirty (30) days after the end of each such month;
(c) use its commercially reasonable efforts to (A) preserve the present business operationsBusiness, organization (including officers to keep available the services of key employees and Employees) and to preserve for the Business the goodwill of the Company its suppliers, franchisees, customers and (B) preserve the present relationships with Persons others having business dealings relations with the Company (including customers and suppliers)Company;
(iiid) maintain (A) all proper and adequate staffing levels in accordance with Law and historical methods of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementoperation;
(ive) maintain product prices;
(Af) maintain the books, accounts books and records of the Company in the Ordinary Course usual, regular and ordinary manner;
(g) maintain in full force and effect all Permits and not sell, transfer, license or otherwise dispose of Business, any material rights or interests under any Permits;
(Bh) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on operate the Balance Sheet Business in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply compliance with all contractual applicable Permits and other obligations all applicable Laws, including all local licensing requirements and local health and fire regulations;
(i) keep all of the Company’s assets of insurable character insured in accordance with industry custom and consistent with past practice;
(j) consult with the Purchaser regarding all material developments, transactions and proposals relating to the Business or the Company;
(k) promptly notify the Purchaser of (i) any Material Adverse Change, (ii) any physical inventory discrepancy in excess of $10,000 relating to the Business, (iii) any theft, condemnation or eminent domain proceeding or material damage, destruction or casualty loss affecting any asset or property of the Company, whether or not covered by insurance, (iv) any breach or default (or event that with notice or lapse of time would constitute a breach or default), acceleration, termination (or threatened termination), modification or cancellation of any Company Contract by any party (including by the Company), (v) comply with the capital expenditure plan termination of employment (whether voluntary or involuntary) of any officer or key employee of the Business or the termination of employment (whether voluntary of involuntary) of employees of the Business materially in excess of historical attrition in personnel, (vi) any Legal Proceeding commenced by or against the Company for 2009 set forth on and (vii) any Legal Proceeding commenced, or threatened against, the Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in or the amounts and at Seller relating to the times set forth in such plantransactions contemplated by this Agreement;
(vil) comply in all material respects with all applicable Lawsnot enter into any Company Contract that (i) is not terminable upon thirty (30) days or less notice or (ii) involves the payment or receipt by the Company of more than $25,000;
(viim) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate (other than by reason of the expiration thereof) any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employeethe Company;
(viiin) introduce not incur or become subject to, or agree to incur or become subject to, any material change with respect to the operation Liability of the Business, Company except (i) normal trade or business obligations (including any material change in the types, nature, composition or quality of products or services, or, other than Company Contracts) incurred in the Ordinary Course of Business, make any change Business and (ii) obligations under Company Contracts in product specifications or prices or terms of distributions of such productseffect on the date hereof;
(ixo) not, without fair consideration, cancel or compromise any material Liability or Claim of the Company or waive or release any material right related to the Business or the Company’s assets;
(p) not breach or default (or take any action that with notice or lapse of time would constitute a breach or default), accelerate, terminate (or threaten termination), cancel or amend any Company Contract;
(q) not change accounting principles or methods or cash management practices (including the collection of receivables, payment of payables, maintenance of inventory control and pricing and credit practices) of the Company, except as required by Section 4.1(r), by law or as a result of any mandatory change in accounting standards;
(r) expense (and not capitalize) all purchases of equipment, supplies and fixtures (except where the size of the purchase requires it to be capitalized pursuant to GAAP and notice of such treatment is provided to the Purchaser prior to such purchase) of the Company;
(s) not make any Tax election or settle or compromise any Tax liability with respect to the Company;
(t) not make any loans, advances or capital contributions from the Company to, or investments by the Company in, any other Person;
(u) not engage in any transactions between the Company and any Related Party;
(v) not increase the aggregate compensation payable or to become payable to any person, including employees, consultants and members of the Company, inconsistent with the past practices of the Company;
(w) not pay any dividends, bonuses or other cash or property to any person, including employees, consultants and members of the Company, inconsistent with the past practices of the Company;
(x) not (i) increase the coverage or benefits available under (or create any new or otherwise amend) any Employee Benefit Plan or Benefit Arrangement or (ii) enter into any transaction employment, deferred compensation, severance, consulting, non-competition, employee retention plan or enter intosimilar agreement (or amend any such existing plan or agreement) involving a director, modify officer or renew employee of the Company in the capacity of director, officer or employee of the Company (other than employment terminable at will without penalty or as required to satisfy the condition set forth in Section 5.7);
(y) not terminate the employment of any Contract which by reason officer or key employee of its size the Business or otherwise is terminate the employment of employees of the Business materially in excess of historical attrition in personnel;
(z) not subject any of the Company’s assets to any Encumbrance;
(aa) not make any payment or transfer of assets (including without limitation any repayment of indebtedness) of the Company to or for the benefit of any Related Party, other than compensation and expense reimbursements paid in the Ordinary Course of Business;
(xbb) enter into any Contractnot transfer, understanding issue, sell or commitment that restrainsdispose of shares of capital stock, restricts, limits units of ownership or impedes the ability other securities of the BusinessCompany or grant options, warrants, calls or the ability of Newco other rights to purchase or Purchaser, to compete with otherwise acquire such capital stock or conduct any business or line of business in any geographic area or solicit the employment of any personsother securities;
(xicc) terminatenot consolidate with, amendor merge with or into, restate, supplement or waive any rights under any Person;
(Add) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than not acquire (except for purchases of inventory in the Ordinary Course of Business Business) any Company assets and not sell, assign, transfer, convey, lease or (B) Permit;
(xii) settle or compromise otherwise dispose of any pending or threatened Legal Proceeding or any claim or claims forof the Company’s assets, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment reflected in the Financial Statements (except for sales of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except inventory for fair consideration in the Ordinary Course of Business under loan Business);
(ee) not take any action that would cause any representation or credit agreements or arrangements up warranty set forth in Article II to the maximum amounts be untrue and other terms incorrect as in effect on of the date when made or (except in the case of this Agreementrepresentations and warranties made as of a specific date) as of any future date; orand
(xviiff) not agree to (i) do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied 4.1 or (Cii) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyrefrain from doing anything required by this Section 4.1.
Appears in 2 contracts
Samples: Unit Purchase Agreement (Argyle Security, Inc.), Unit Purchase Agreement (Argyle Security, Inc.)
Conduct of the Business Pending the Closing. Sellers hereby jointly and severally covenant that, from the date hereof to and including the Closing Date, unless Buyer shall otherwise consent (such consent not to be unreasonably withheld or delayed) or as otherwise contemplated by this Agreement:
(a) Except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, between the date hereof Business shall be conducted and the Closing, the Company shall:
(i) conduct the Business Assets repaired and maintained only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operationsordinary and usual course, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company in a manner consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company Balfour shall not:
not (i) (Aexcept as set forth in Schedule 5.1(b) increase hereto make any commitment to make any capital expenditures after the salary Closing Date individually in excess of $20,000 or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course aggregate in excess of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party$250,000; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement amend or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business its material contracts; or (Biii) Permitenter into (1) any written employment or severance agreement with any Acquired Employee or (2) any new employee benefit plan, program or arrangement or amend any existing employee benefit plan, program or arrangement or grant any increases in compensation to the Acquired Employees in excess of increases in compensation consistent with the past practices of the Business;
(xiic) settle or compromise except in the ordinary course of business consistent with past practice, Balfour shall not (i) other than as set forth on Schedule 5.1(c), dispose of any pending or threatened Legal Proceeding or any claim or claims for, or that would result in capital assets with a loss of revenue of, an amount that couldbook value, individually or in the aggregate, reasonably be expected to be greater than in excess of $50,00020,000 or further encumber any of its capital assets or (ii) incur, or guarantee or otherwise become liable for, any indebtedness for borrowed money;
(xiiid) change Sellers shall maintain in full force and effect all insurance policies now in effect or modify its credit, collection renewals thereof covering the Assets or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesthe Business and the Employees;
(xive) take any action which would adversely affect the ability Sellers shall promptly notify Buyer of the parties following of which any of them become aware: (i) any breach or violation of, default or event of default under, or actual or threatened termination or cancellation of any material contract or other material instrument relating to consummate the transactions contemplated by this AgreementBusiness; (ii) any material loss of, damage to, or disposition of any of the Assets (other than the sale or use of inventories in the ordinary course of business); and (iii) any material claim or litigation, threatened or instituted against any Seller and affecting the Business;
(xvf) amend Sellers shall consult with Buyer with respect to any collective bargaining negotiations affecting the operating agreement Business and the adoption of the Companyemployee benefit plans;
(xvig) agree to materially increase Liabilities from Other than in connection with the amounts Temporary Leases and Subleases no Seller shall sell, dispose of, lease, sublease, distribute, encumber or enter into any agreement, arrangement or commitment, whether oral or written, for the sale, disposition, leasing, subleasing, distribution or encumbrance of any portion of the Assets or the Business (other than the sale of obsolete equipment or the sale or use of inventories in the ordinary course of business of the Business or as set forth on the Balance Sheet except in the Ordinary Course of Business under loan item (c)(i) above) or credit agreements initiate or arrangements up participate, through agents, representatives or otherwise, in any discussions or negotiations with, or otherwise solicit from, any corporation, business or person any proposals or offers relating to the maximum amounts and other terms as in effect on disposition of any such portion of the date of this Agreement; orBusiness;
(xviih) agree to do anything (A) prohibited by this Section 6.2, (B) that would No Seller shall make any material change to any business policy of the representations and warranties Business, including, without limitation, promotional, advertising, marketing, pricing, purchasing, personnel, return or product acquisition policy; and
(i) Sellers shall use their respective best efforts to preserve for the benefit of the Company in this Agreement or any of Business their relations with the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyBusiness' customers and suppliers.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Town & Country Corp), Asset Purchase Agreement (Commemorative Brands Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall use their best efforts, and shall cause the Company shallto:
(i) conduct Conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures or the purchase of assets out of the ordinary course in excess of $5,000;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection the Sellers or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the Sellers; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 2 contracts
Samples: Stock Purchase Agreement (National Investment Managers Inc.), Stock Purchase Agreement (National Investment Managers Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement (including the prosecution of the Chapter 11 Case) or with the prior written consent of NewcoPurchaser, between Sellers shall, and shall cause their Subsidiaries to, with respect to the date hereof and the Closing, the Company shallBusiness only:
(i) except as set forth in Schedule 8.3, conduct the Business only in the Ordinary Course of BusinessBusiness as debtors in possession;
(ii) use its their commercially reasonable efforts efforts, as debtors in possession, to (A) preserve the their present business operations, organization (including officers and Employeesemployees) and goodwill of the Company Sellers and (B) preserve the present relationships with Persons having business dealings with the Company Sellers (including without limitation customers and suppliers);
(iii) maintain (A) all of the assets Purchased Assets and properties ofLicensed Assets in their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the assets Purchased Assets and properties of the Company Licensed Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Sellers in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay pay, with respect to the Purchased Contracts, post-petition accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures when due and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) subject to existing defaults and future payment defaults, comply with all contractual and other obligations of under the CompanyPurchased Contracts;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viiivi) pay all maintenance and similar fees and not take all other appropriate actions as necessary to prevent any action which would adversely affect the abandonment, loss or impairment of all Intellectual Property ability of the Companyparties to consummate the transactions contemplated by this Agreement.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement (including the prosecution of the Chapter 11 Case) or with the prior written consent of NewcoPurchaser, the Company Sellers shall not, and shall not permit their Subsidiaries to, with respect to the Business only:
(i) (A) increase with respect to the salary or other compensation of any director or Employee of the Company except for normal year-end increases Employees set forth in the Ordinary Course of BusinessSchedule 9.1, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Sellers or any of their Subsidiaries is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) createmake or rescind any election relating to Taxes or settle or compromise any claim, incuraction, assumesuit, guaranteelitigation, endorse proceeding, arbitration, investigation, audit or otherwise become liable or responsible with respect controversy relating to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related Taxes to the Permitted Exceptionsextent that such election, settlement or compromise would have any material post-Closing effect that would be binding on Purchaser for taxable periods (xor portions thereof) beginning on or after the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Closing Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the CompanySellers;
(viv) except as provided with respect to the Employees set forth in Section 6.6 hereofSchedule 9.1, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employeeorganization;
(viiiv) except as set forth in Schedule 8.3, introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition (except as required by the FDA) or quality of products the Products or services, or, other than in the Ordinary Course of Business, or make any change in product Product specifications or prices or terms of distributions of such productsProducts;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(xvi) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsarea;
(xivii) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease Purchased Contract or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviiviii) agree to do anything (A) prohibited by this Section 6.2, (B) that 8.3 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyrespect.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Aaipharma Inc), Asset Purchase Agreement (Xanodyne Pharmaceuticals Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as otherwise expressly provided by this Agreement set forth on Schedule 7.2(a), or (ii) with the prior written consent of Newco, between the date hereof and the ClosingAcquiror, the Company and each of its Subsidiaries shall:
(iA) conduct the Business respective businesses only in the Ordinary Course of Business, except for the acquisition of Interest B as contemplated under Section 7.9;
(iiB) use its commercially reasonable efforts to maintain working capital of the Company at levels consistent with past practice;
(AC) pay its debts and Taxes when due and properly withhold all Taxes (such as withholding of Taxes from Employees or Former Employees); and
(D) use its commercially reasonable efforts to preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and each of its Subsidiaries.
(b) Except (i) as set forth on Schedule 7.2(b) or (ii) with the prior written consent of Acquiror, the Company and each of its Subsidiaries shall not:
(A) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(B) preserve the present relationships with Persons having business dealings with issue or sell any shares of capital stock or other securities of the Company (including customers and suppliers)or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iiiC) maintain (A) all effect any recapitalization, reclassification or like change in the capitalization of the assets and properties ofCompany, or used by, except to the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementextent required by Law;
(ivD) (A) maintain amend the books, accounts and records articles of incorporation or by-laws or comparable organizational documents of the Company in the Ordinary Course of Business, Company;
(BE) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet than in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts as required by Law or Liabilities utilizing all available cash and any available line of creditContract, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A1) increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessEmployee, (B2) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directorEmployee, (C3) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Employee Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D4) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition competition, retention or similar agreement or arrangement with any directors or officers of the Company Employee, (or amend any such agreement) to which the Company is a party; party or (E) pay or make involving any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) Employee except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivF) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets of the Company or any of its Subsidiaries (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) , for the purpose of disposing of obsolete or worthless assets or the Companyacquisition of Interest B in accordance with Section 7.9);
(vG) except as provided other than in Section 6.6 hereofthe Ordinary Course of Business, cancel or compromise any material debt or claim or waive or release any material right of the Company or any of its Subsidiaries;
(H) enter into, modify, extend or terminate any labor or collective bargaining agreement;
(I) enter into or agree to enter into any merger or consolidation with any other Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise agreement to acquire the securities of any other Person;
(viJ) cancel incur any Indebtedness for borrowed money or compromise issue any debt securities or claimassume, guarantee or endorse, or waive otherwise as an accommodation become responsible for, the obligations of any person, or release make any material right of the Company except in the Ordinary Course of Businessloans or advances, or enter into any Hedging Arrangements;
(viiK) enter into, modify except to the extent required by Law or terminate any labor or collective bargaining agreement or, through negotiation or otherwiseGAAP, make any commitment or incur any Liability material change to any labor organization with respect to any Employeeof its methods of accounting or methods of reporting revenue and expenses or accounting practices;
(viiiL) introduce make any material change with respect to the operation of the Business, including any material change new capital expenditures exceeding $50,000.00 in the types, nature, composition or quality of products or services, or, aggregate (other than the acquisition of Interest B in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsaccordance with Section 7.9);
(ixM) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business enter into, modify, amend or (B) Permitterminate any Material Contract;
(xiiN) (1) make, revoke or change any material Tax election or (2) settle or compromise any pending material federal, state, local or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000foreign income Tax liability;
(xiiiO) change participate or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past dueengage in any transaction that constitutes a “reportable transaction” as such term is defined in Treasury Regulation Section 1.6011-4(b)(1) or fail to pay or delay payment of payables or other liabilitiesany transaction that constitutes a “listed transaction” as such term is defined in Treasury Regulation Section 1.6011-4(b)(2);
(xivP) take make any action which would adversely affect principal payments to the ability holder of the parties to consummate the transactions contemplated by this Agreementthat certain 6% Exchangeable Secured Subordinated Debenture of 1212500 Alberta Ltd. due April 25, 2008;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviiQ) agree to do anything (A) prohibited by this Section 6.2, 7.2(b); or
(BR) take any action that would make any of the representations representation and warranties warranty of the Company in this Agreement or any of the Company Documents untrue or incorrect hereunder inaccurate in any material respect at, or could result as of any time prior to, the Effective Time or omit to take any action necessary to prevent any such representation or warranty from being inaccurate in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyat any such time.
Appears in 2 contracts
Samples: Merger Agreement (Battle Mountain Gold Exploration Corp.), Merger Agreement (Royal Gold Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (w) as set forth in Section 7.2(a) of the Company Disclosure Letter, (x) as required by applicable Law, (y) as otherwise expressly provided contemplated by this Agreement Agreement, any of the Seller Documents or the Company Documents, or (z) with the prior written consent of NewcoBuyer (such consent not to be unreasonably withheld, between the date hereof conditioned or delayed; provided, that Buyer shall respond as soon as reasonably practicable following receipt of a written request for such consent), Panadero Corp shall, and the Closing, the Company shallshall cause its Subsidiaries to:
(i) conduct the Business only respective businesses of Panadero Corp and the Subsidiaries in the Ordinary Course of Business;
(ii) cause Panadero Aggregates to make a valid election under Section 754 of the Code; and
(iii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Panadero Corp and its Subsidiaries, and (B) preserve the present relationships with Persons having business dealings customers and suppliers of Panadero Corp and its Subsidiaries.
(b) Other than (1) as set forth in Section 7.2(b) of the Company Disclosure Letter, (2) as required by applicable Law, (3) as otherwise contemplated by this Agreement, any of the Seller Documents or any of the Company Documents or (4) with the Company prior written consent of Buyer (including customers such consent not to be unreasonably withheld, conditioned or delayed; provided, that Buyer shall respond as soon as reasonably practicable following receipt of a written request for such consent), Panadero Corp shall not, and suppliers)shall not permit its Subsidiaries to:
(i) transfer, issue, sell, purchase, redeem, retire or grant any equity interests of Panadero Corp or any of its Subsidiaries or grant any options, warrants, calls or other rights to purchase or otherwise acquire equity interests of Panadero Corp or any of its Subsidiaries;
(ii) reclassify, combine, split, subdivide or amend the terms of any of its capital stock or issue or authorize the issuance of any other securities in respect of, in lieu of, or in substitution for, shares of its capital stock;
(iii) maintain (A) all amend in any material respect the certificate of the assets and properties ofincorporation, bylaws or used by, the Company consistent with past practice, and (B) insurance upon all comparable organizational documents of the assets and properties Panadero Corp or any of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementits Subsidiaries;
(iv) declare, set aside or pay any non-cash dividend or non-cash distribution;
(Av) maintain the booksexcept (x) as required pursuant to any existing Labor Agreement, accounts and records of the other Contract or Company in the Ordinary Course of BusinessBenefit Plan, or (y) as required by applicable Law, (B1) continue materially increase the amount of any bonus, salary or other compensation to collect accounts receivable and pay accounts payable and any Company Personnel (other Liabilities set forth on the Balance Sheet than any such increase in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations to an employee who is not a member of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(vExecutive Management Team), including making such capital expenditures (2) establish, adopt, enter into or amend in any material respect, or materially increase the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonmentpayments or benefits under, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this any Labor Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any Benefit Plan (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, that would be a Labor Agreement or with any Company Benefit Plan if it were in existence as of the directorsdate hereof), officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, than (x) the Indebtedness reflected in the Balance Sheetconnection with renewals, (y) the Indebtedness incurred modifications or replacements in the Ordinary Course of Business since the Balance Sheet Dateof health insurance and other Company Benefit Plans that are customarily renewed, modified or replaced on an annual basis, and (zy) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except offer letters to new hires engaged in the Ordinary Course of BusinessBusiness who are not members of the Executive Management Team, payprovided that such offer letters do not provide for change in control, prepayretention or severance benefits, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D3) make take any loans, advances of capital contributions to, action to accelerate any rights or investments in, benefits under any other PersonCompany Benefit Plan;
(iiivi) subject to enter into any Lien commitment for any capital expenditures of Panadero Corp or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer any of its Subsidiaries to be subjected to any Lien or otherwise encumbered, any made following the Closing in excess of the Purchased Assetsamounts set forth in Section 7.2(b)(vi) of the Company Disclosure Letter;
(ivvii) without duplication of subsection (vi), acquire or lease any material properties or assets assets, or sell, lease, sublease, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets properties or assets of Panadero Corp and its Subsidiaries with a value in excess of $2,000,000 individually, or $5,000,000 in the aggregate;
(viii) amend or terminate, or assign any material rights or claims under, any Lease (except for fair consideration renewals under the terms thereof, in the Ordinary Course of Business) of the Company);
(vix) change its fiscal year or its present accounting methods or principles in any material respect, except as provided required by GAAP or by the Companies’ auditors;
(x) change any annual Tax accounting period, change any material method of Tax accounting, amend any material Tax Returns, settle any material Tax claim, make or change any material election relating to Taxes or take any action that would result in Section 6.6 hereofa change of the tax classification of Panadero Aggregates or any of its Subsidiaries;
(xi) incur any Indebtedness in excess of $2,000,000 other than in the Ordinary Course of Business; provided, that, for the avoidance of doubt, borrowings under the Credit Facilities, as amended, in amounts not to exceed the aggregate amount of commitments in effect as of the date of this Agreement, shall not require the consent of Buyer;
(xii) permit Panadero Corp or any of its Subsidiaries to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution toother entity, or otherwise acquire the securities of any other Person, except, in each case for transactions between Panadero Corp and/or any of its Subsidiaries;
(vixiii) cancel settle any pending or compromise threatened litigation, proceeding or other Action other than for an amount not in excess of $500,000 individually or $1,000,000 in the aggregate, provided that such settlement does not result in any debt continuing obligations (other than customary confidentiality obligations) of the Companies or claimtheir Subsidiaries and does not involve any injunctive or equitable relief, or waive impose restrictions (other than customary confidentiality obligations), on the Companies or release their Subsidiaries;
(xiv) subject any material right asset or property to any Lien, other than Permitted Exceptions or Liens that will be released at or prior to the Closing;
(xv) amend or terminate, or assign any material rights or claims under, any Company Contract or enter into any Contract that would have constituted a Company Contract if such Contract had been entered into at or prior to the date of the Company except this Agreement, in each case other than in the Ordinary Course of Business;
(viixvi) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into granting to any ContractPerson (other than Panadero Aggregates or any of its Subsidiaries) an option or a first refusal, understanding first-offer or commitment that restrainssimilar preferential right to purchase or acquire any material assets of Panadero Corp or its Subsidiaries or (y) containing exclusivity arrangements, restricts, limits a “most favored nation” clause or impedes a covenant not to compete (or otherwise restricting the ability of the Business, Companies or the ability any of Newco or Purchaser, their Subsidiaries to compete with or conduct any business or line of business engage in any geographic area or solicit business) in each case that is binding on the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding Companies or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementtheir Subsidiaries; or
(xvii) agree or commit, whether in writing or otherwise, to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company foregoing.
(c) Notwithstanding anything contained in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the contrary, Panadero Corp and its Subsidiaries shall be permitted to maintain through the Closing not being satisfied or Date the cash management systems of Panadero Corp and its Subsidiaries, maintain the cash management procedures as currently conducted by Panadero Corp and its Subsidiaries, and periodically settle intercompany balances consistent with past practices (C) that could including through dividends and capital contributions and all such intercompany balances shall be reasonably expected settled at the Closing in accordance with their terms). Panadero Corp and its Subsidiaries are allowed to have a Material Adverse Effect with respect dividend all Cash and Cash Equivalents of Panadero Corp and its Subsidiaries to the CompanySellers immediately prior to the Adjustment Time.
Appears in 2 contracts
Samples: Securities Purchase Agreement, Securities Purchase Agreement (Martin Marietta Materials Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Seller Schedule 7.2, (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), between Seller shall, solely as it relates to the date hereof and the Closing, the Company shallBusiness:
(i) conduct the Business only in the Ordinary Course of Business;; and
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Seller and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);suppliers of Seller.
(b) Except (i) as set forth on Seller Schedule 7.2, (ii) as required by applicable Law, (iii) maintain (A) all of the assets and properties of, as otherwise contemplated by this Agreement or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) with the prior written consent of Purchaser (Awhich consent shall not be unreasonably withheld or delayed), Seller shall not, solely as it relates to the Business:
(i) maintain the books, accounts and records of the Company other than in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessEmployee, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directorEmployee, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation Employee Benefit Plan for disability, sick leave, deferred compensation, bonus the Employees or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) with an Employee, except, in each case, as required by applicable Law from time to which the Company is a party; time in effect or (E) pay or make by any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyEmployee Benefit Plans;
(ii) (A) createmake or rescind any material election relating to Taxes, incursettle or compromise any claim, assumeaction, guaranteesuit, endorse litigation, proceeding, arbitration, investigation, audit or otherwise become liable controversy relating to Taxes, or responsible with respect except as may be required by applicable Law or GAAP, make any material change to (whether directly, contingently any of its methods of accounting or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course preparation of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personits most recent Tax Returns;
(iii) subject any of the Purchased Assets to any Lien or otherwise encumber orLien, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets that would constitute Purchased Assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) Business or for the purpose of the Companydisposing of obsolete or worthless assets);
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Person, and not engage corporation or other entity that would result in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any PersonMaterial Adverse Effect;
(vi) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Seller that constitutes a Purchased Asset except in the Ordinary Course of Business;
(vii) enter into any commitment for capital expenditures in excess of $10,000 for any individual commitment and $50,000 for all commitments in the aggregate;
(viii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementorganization; or
(xviiix) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Attis Industries Inc.), Asset Purchase Agreement (Attis Industries Inc.)
Conduct of the Business Pending the Closing. The Sellers agree that, during the period from the date of this Agreement until the earlier of the Closing or the termination of this Agreement pursuant to its terms, except as (a) Except as otherwise expressly provided set forth on Schedule 6.2, (b) may be authorized by this Agreement or with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingconditioned or delayed), or (c) may otherwise be contemplated by this Agreement, the Company shall:
Sellers shall (i) conduct the Business only in the Ordinary Course of Business;
, (ii) comply in all material respects with applicable Laws and (iii) use its their commercially reasonable efforts to (A) preserve the present business operationsmaterial Transferred Assets (subject to any dispositions of inventory, organization (including officers collection of accounts receivable, realization of prepaid expenses and Employees) and goodwill full performance or other expiration of Contracts, in each case, in the Company and Ordinary Course of Business), (B) preserve the present relationships maintain their existing relations and goodwill with Persons customers, suppliers, distributors and others having business dealings with the Company and (including customers C) keep available the services of the Key Employees. Without limiting the generality of the foregoing, and suppliersas an extension thereof, the Company and, solely with respect to the following clauses (g), (i) and (r), Paddock Properties shall not, and shall not permit the Subsidiary to, directly or indirectly, do, agree or commit to do, or authorize any of the following:
(a) authorize, adopt or effect any change in its articles of incorporation, by-laws, limited liability company agreement or other organizational documents;
(iiib) maintain make any change in its authorized or issued capital stock or other equity interests or, directly or indirectly, acquire, redeem, issue, deliver, encumber, sell or otherwise dispose of any of its capital stock or other equity interests or securities convertible into, or exercisable or exchangeable for, any of its capital stock or other equity interests or authorize any such action;
(Ac) all split, combine or reclassify any of the assets and properties its capital stock or other equity interests or issue any other security in respect of, in lieu of or used byin substitution for shares of its capital stock or other equity interests;
(d) declare, the Company consistent with past practiceset aside, and make or pay any dividend or other distribution payable in property or other in kind consideration, in respect of its capital stock or other equity interests;
(Be) insurance upon all issue any note, bond, or other debt security or create, incur, assume, or guarantee any Liabilities, other than Liabilities under Material Contracts in existence as of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (Df) make any loans, advances of or capital contributions to, or investments in, any Person, other Personthan any loans or advances that will be repaid prior to or at the Closing;
(iiig) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assigntransfer, lease, license, transfer, convey, lease pledge or encumber or otherwise dispose of any material Transferred Asset (including by merger, consolidation, asset sale, formation of a joint venture or other business combination), except (i) pursuant to Contracts in existence as of the Purchased Assets date of this Agreement or (except for fair consideration in the Ordinary Course ii) sales of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except inventory in the Ordinary Course of Business;
(viih) enter into, adversely modify or terminate any labor amend or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Businessaffirmatively terminate, or the ability of Newco waive, release or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive assign any rights under or claims under, any (A) Material Contract, Real Property Leaseexcept (i) as may be required by Law or by such Material Contract, Personal Property Lease or Intellectual Property License, other than (ii) in the Ordinary Course of Business or (Biii) Permitany Material Contract that is an Excluded Asset; or enter into any other Contract that, if existing on the date of this Agreement, would be a Material Contract, other than Contracts with customers that generate revenues for the Business and other than Contracts that are Excluded Assets;
(xiii) settle demolish or compromise any pending or threatened Legal Proceeding materially alter the Facility or any claim real property that is the subject of a Company Lease;
(j) cancel, compromise or claims forsettle any material claim, or waive or release any material rights of the Company or the Subsidiary;
(k) except as required to maintain qualification pursuant to the Code or as required by Law or by the terms of any Company Benefit Plan, adopt, enter into, amend, alter or terminate any Company Benefit Plan (including any award issued thereunder), fund or in any other way secure any payment of compensation or benefits under any Contract or Company Benefit Plan, or exercise any discretion to accelerate the vesting or payment of any compensation or benefit under any Contract or Company Benefit Plan;
(l) grant or agree to grant any increase in the wages, salary, bonus opportunities or other compensation, remuneration or benefits (including severance or termination pay) of any employee, officer, consultant, independent contractor, manager or director of the Company, other than (a) pursuant to Material Contracts in existence as of the date of this Agreement or (b) pursuant to the existing terms of a Company Benefit Plan; or take any action that would constitute a “mass lay-off,” a “mass termination,” or a “plant closing,” or that would result otherwise trigger notice requirements under any applicable Law concerning reductions in force, such as the WARN Act or any similar Law in any applicable jurisdiction;
(m) acquire (by merger, consolidation, formation of a loss joint venture, acquisition of revenue ofstock or assets or other business combination) any corporation, an amount that couldpartnership or other business organization or division thereof, all or substantially all of the assets of a business or business unit, or a collection of any material portion of the assets of any Person, or merge or consolidate with any Person;
(n) make any material change in any method of accounting or accounting practice policy, other than as required by applicable Law or by a change in GAAP;
(o) make or change any material Tax election, change in any material respect its method of Tax accounting or settle any material claim relating to Taxes;
(p) make, or commit to make, capital expenditures that, in the aggregate, exceed $2,000,000, other than pursuant to Material Contracts in existence as of the date of this Agreement;
(q) adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization of the Company or the Subsidiary, or enter into a letter of intent or agreement in principle with respect thereto, other than pursuant to Material Contracts in existence as of the date of this Agreement;
(r) take or fail to take any action that, individually or in the aggregate, would reasonably be expected to be greater than $50,000;
(xiii) change result in, a Material Adverse Effect or modify its credit, collection constitute a willful breach of any representation or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability warranty of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementSellers made herein; or
(xviis) authorize, agree or otherwise commit to do anything (A) prohibited by this Section 6.2, (B) that would make take any of the representations and warranties of actions prohibited by the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or foregoing clauses (Ca) that could be reasonably expected to have a Material Adverse Effect with respect to the Companythrough (r).
Appears in 2 contracts
Samples: Purchase Agreement, Purchase Agreement (Perrigo Co)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Seller shall, and shall cause the Company shall:and its Subsidiaries to,
(i) conduct the Business business of the Company and its Subsidiaries only in the Ordinary Course of Business;
(ii) ordinary course consistent with past practice and to use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and Company, (B) preserve the its present relationships relationship with Persons having business dealings with the Company and its Subsidiaries, and (including customers and suppliers);
(iiiC) maintain (A) all of the assets and properties of, or used by, the Company Properties and all buildings, structures, fixtures and improvements thereon in the same condition as they exist on the date hereof, ordinary wear and tear excepted, in each case consistent with past practice, and ;
(Bii) insurance upon all of use commercially reasonable efforts to maintain the assets and properties of the Company and its Subsidiaries in such amounts customary repair, order and of such kinds condition, maintain insurance reasonably comparable to that in effect on the date Balance Sheet Date and, in the event of this Agreement;
(iv) (A) maintain a casualty, loss or damage to any of such assets prior to the books, accounts and records of Closing Date for which the Company in and its Subsidiaries is the Ordinary Course beneficiary of Businessinsurance or the condemnation of any such assets, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on either repair or replace such assets or, if the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting Purchaser agrees, retain such insurance or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapsecondemnation proceeds; and
(viiiiii) pay all maintenance if, to the Seller's best knowledge, any material variances from the representations and similar fees and take all other appropriate actions as necessary to prevent warranties contained in Article IV arise or occur, promptly inform the abandonment, loss or impairment Purchaser of all Intellectual Property of the Companyany such material variances.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not, and shall cause the Company and each of its Subsidiaries not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company and its Subsidiaries or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company and its Subsidiaries;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company and its Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company and its Subsidiaries;
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company and its Subsidiaries;
(iv) amend the articles of incorporation or by-laws of the Company and its Subsidiaries;
(A) grant any increase in the salary or other compensation of any director of the directors, officers, or Employee Key Employees of the Company except for normal year-end increases or any of its Subsidiaries or make any general uniform increase in the Ordinary Course compensation of Businessthe employees of the Company or any of its Subsidiaries outside the ordinary course of business consistent with past practice, (B) grant any extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant of the Company or any of its Subsidiaries, or (C) increase the coverage or benefits available under enter into any (or create any new) severance payseverance, termination paytermination, vacation pay, company awards, salary continuation for disability, sick leaveretention, deferred compensation, bonus or other incentive compensation, insuranceprofit sharing, pension stock option, stock appreciation right, restricted stock, stock equivalent, stock purchase, pension, retirement, medical, hospitalization, life or other insurance or other employee benefit plan or arrangement made to, for, or with any for the benefit of the officers, directors, officers, Employees, agents or representatives and/or employees of the Company or otherwise modify or amend or terminate any such plan or arrangement of its Subsidiaries;
(Dvi) enter into any employmentexcept for trade payables and under lines of credit existing on the date hereof, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units Company or other equity interests any of its Subsidiaries, borrow monies for any reason or draw down on any line of credit or debt obligation, or become the Company;
(ii) (A) createguarantor, incursurety, assume, guarantee, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) except under lines of credit existing on the date hereof, and consistent with past practice, subject any of the properties or assets of the Company and its Subsidiaries to any Lien or otherwise encumber or, except for (other than Permitted Exceptions);
(viii) purchase, permitsell, allow lease, transfer or suffer to be subjected to any Lien or otherwise encumbered, assign any of the Purchased Assets;
Company's and its Subsidiaries' assets, tangible or intangible, involving more than $100,000 for any single purchase, sale, lease, transfer or assignment (ivor agreement related to the foregoing) acquire any material properties or assets $500,000 for a series of such related purchases, sales leases, transfers or sell, assign, license, transfer, convey, lease assignments (or otherwise dispose of any of agreement related to the Purchased Assets foregoing) except (except A) for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice, (B) dispositions of assets no longer useful to the conduct of the business of the Company and its Subsidiaries, consistent with past practice, and (C) dispositions (other than as part of an engine overhaul or repair) of inventory covered by the Company's slow-moving inventory reserve in an amount not resulting in aggregate sale proceeds in excess of $300,000;
(vix) cancel or compromise any material debt or claim or waive or release any material right of the Company or its Subsidiaries except as provided in Section 6.6 hereofthe ordinary course of business consistent with past practice;
(x) with respect to the Company or any of its Subsidiaries, enter into any commitment for capital expenditures in excess of $100,000 for any individual commitment and $250,000 for all commitments in the aggregate;
(A) enter into any employment contract (pursuant to which the Company or any of its Subsidiaries may reasonably be expected to make payment in excess of $50,000 in any twelve month period) or (B) enter into any labor or collective bargaining agreement, oral or written, or make any material modification of the terms of any existing such contract or agreement, or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization with respect to, or materially reduce the workforce of, the Company and its Subsidiaries;
(xii) with respect to the Company or any of its Subsidiaries, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change with respect to the Company or any of its Subsidiaries, and except for transfers of cash pursuant to normal cash management practices, make any investments in or loans to, or except in accordance with past practices, pay any fees or expenses to, or enter into or modify its creditany Contract with, collection the Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesthe Seller;
(xiv) take with respect to the Company or any action which would adversely of its Subsidiaries, make or change any election concerning Taxes or Tax Returns, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return, enter into any closing agreement with respect to Taxes, settled any Tax claim or assessment or surrender any right to claim a refund of Taxes or obtain or enter into any Tax ruling, agreement, contract, understanding, arrangement or plan, in each case that will be binding on or affect the ability Purchaser, the Company or any of its Subsidiaries for any period after the parties to consummate the transactions contemplated by this AgreementClosing Date;
(xv) amend with respect to the operating agreement Company or any of its Subsidiaries, enter into any contract, lease, sublease, license or sublicense (or series of related contracts, leases, subleases, licenses and sublicenses) involving more than $50,000 except those entered into in the Companyordinary course of business consistent with past practice;
(xvi) agree with respect to materially increase Liabilities from the amounts set forth on the Balance Sheet Company or any of its Subsidiaries, accelerate, terminate, modify or cancel any contract, lease, sublease, license or sublicense (or series of related contracts, leases, subleases, licenses and sublicenses) involving more than $50,000 except in the Ordinary Course ordinary course of Business under loan or credit agreements or arrangements up business consistent with past practice;
(xvii) with respect to the maximum amounts Company or any of its Subsidiaries, (A) make any capital investment in, any loan to, or any acquisition of the securities of another Person (or series of related capital investments, loans and acquisitions) involving more than $50,000 except in the ordinary course of business consistent with past practice or (B) make any pledge to make such a capital contribution;
(xviii) with respect to the Company or any of its Subsidiaries, grant a license or sublicense of any rights under or with respect to any intellectual property;
(xix) make any loan to, or enter into any transaction with, any of the directors, officers, or employees of the Company or any of its Subsidiaries outside the ordinary course of business;
(xx) make any other material change in employment terms as in effect on for any of the date directors or officers of this Agreementthe Company or any of its Subsidiaries or the Key Employees; or
(xviixxi) agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyrespect.
Appears in 2 contracts
Samples: Stock Purchase Agreement (First Aviation Services Inc), Stock Purchase Agreement (First Aviation Services Inc)
Conduct of the Business Pending the Closing. From the date hereof until the Closing, except (i) as expressly required by this Agreement, (ii) for any actions set forth in Section 5.2 of the Disclosure Schedule, (iii) for actions taken to implement or give effect to the Step Plan in compliance with the terms and conditions of this Agreement, (iv) as otherwise consented to by Buyer in writing (which consent shall not be unreasonably withheld, conditioned or delayed) or (v) as is required to comply with applicable Law, Parent shall cause each of the following to occur:
(a) Except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, between the date hereof The Companies and the Closing, Subsidiaries will operate their business in the Company shall:
ordinary course of business on a basis consistent with past practice and (x) use their reasonable best efforts to (i) conduct preserve intact their present business organization, (ii) maintain in effect all of their foreign, federal, state and local Permits, (iii) keep available the Business only services of their directors, officers and employees including maintaining applicable visas where necessary, (iv) maintain satisfactory relationships with their customers, lenders, suppliers and others with which they have material business relationships, (v) maintain satisfactory relationships with relevant trade unions and other employee representative groups, (vi) manage their working capital (including the timing of collection of accounts receivable and of the payment of accounts payable and the management of inventory) in the Ordinary Course ordinary course of business consistent with past practice and (vi) manage their contractual obligations (including the timing of performance of such contractual obligations by the Companies and Subsidiaries and counterparties thereto) in the ordinary course of business consistent with past practice and (y) maintain the Company Facilities and make capital expenditures in the ordinary course of business consistent with past practices taking into account the performance of the Business;
(iib) use its commercially reasonable efforts to The Companies and the Subsidiaries shall not amend their articles of incorporation, bylaws or other similar organizational documents (A) preserve the present business operationswhether by merger, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliersconsolidation or otherwise);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 2 contracts
Samples: Share Purchase Agreement (Emerson Electric Co), Share Purchase Agreement (PENTAIR PLC)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (I) as set forth on Schedule 8.2(a), (II) as required by applicable Law, (III) as otherwise expressly provided contemplated by this Agreement (including the Reorganization) or (IV) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the Company shall, and shall cause the Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts Commercially Reasonable Efforts to (A) preserve the present business operations, organization (including officers and Employees) organization, assets, properties and goodwill of the Company and the Subsidiaries, and (B) preserve the present relationships with Persons having business dealings customers and suppliers of the Company and the Subsidiaries;
(iii) in its sole discretion, either (A) sell all of the issued and outstanding equity interests of any of the FirstLight Entities (collectively, the “FirstLight Equity”) held indirectly by the Company to an Approved Purchaser and thereafter transfer to any member of the Seller Group any remaining FirstLight Equity held indirectly by the Company after giving effect to such sale or (B) transfer all of the FirstLight Equity to any member of the Seller Group (clause (A) or (B), respectively, the “FirstLight Transfer”); and
(iv) use its Commercially Reasonable Efforts to proceed in accordance with the Company Company’s historical timeline and practice in the preparation of (A) audited or unaudited, as applicable, financial statements of the Business (including customers combined balance sheets, statements of operations, statements of cash flows and suppliersstatements of stockholders equity (if applicable)), for any fiscal year or quarter that has ended prior to the Closing (such financial statements to have been prepared in accordance with GAAP and, with respect to unaudited financial statements, reviewed by the independent accountants for the Business as provided in the procedures specified by the Public Company Accounting Oversight Board in AU 722) and (B) the information required by Item 303 Management’s Discussion and Analysis of Financial Condition and Results of Operations of Regulation S-K with respect to any period for which financial statements are prepared pursuant to clause (A) of this clause (iv); provided that notwithstanding anything in this Agreement to the contrary, this Section 8.2(a)(iv) shall not be included for purposes of the condition set forth in Section 9.1(b).
(b) Prior to Closing, except (I) as set forth on Schedule 8.2(b), (II) as required by applicable Law, (III) as otherwise contemplated by this Agreement (including the Reorganization), (IV) as contemplated by the FirstLight Transfer, or (V) with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, delayed or conditioned), Seller (solely with respect to Section 8.2(b)(xvi)) and the Company shall not, and shall not permit the Subsidiaries to:
(i) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company or any of the Subsidiaries;
(ii) effectuate any recapitalization, reclassification or like change in the capitalization of the Company or any of the Subsidiaries (other than any redemption or retirement of any shares of capital stock of the Company or any other recapitalization of the Company in connection with the repayment of Indebtedness to any member of the Seller Group);
(iii) maintain (A) all of the assets and properties ofliquidate, dissolve or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementotherwise wind up its business or operations;
(iv) (A) maintain amend the books, accounts and records certificate of incorporation or bylaws or comparable organizational documents of the Company in or any of the Ordinary Course of Business, Subsidiaries;
(Bv) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet than in the Ordinary Course of Business utilizing normal procedures and without discounting (except with respect to clause (D)), as required by Law or accelerating payment Contract, or pursuant to the terms of such accounts any Company Benefit Plan, (A) materially increase the annual level of base compensation payable or Liabilities utilizing all available cash and to become payable to any available line of creditdirector, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan executive officer, employee or independent contractor of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property any of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessSubsidiaries, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) materially increase the coverage or benefits available under any Company Benefit Plan, (C) hire any individual to be employed by the Company or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Subsidiary as an executive officer or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with terminate the employment of any of the directors, officers, Employees, agents or representatives executive officer of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employmentSubsidiary, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make loan or advance any loansmoney or other property to any present or former director, advances officer or employee of capital contributions to, the Company or investments in, any other PersonSubsidiary;
(iiivi) subject any of the properties or assets (whether tangible or intangible) of the Company or any of the Subsidiaries to any Lien or otherwise encumber orLien, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvii) enter into, assume, terminate, assign, partially or completely amend, grant any waiver of any material term under or grant any material consent with respect to, any Material Contract or Contract that would be a Material Contract if in existence on the date hereof;
(viii) acquire any material individual properties or assets in excess of $5,000,000 or sell, assign, license, transfer, convey, lease or otherwise dispose of any individual properties or assets in excess of $5,000,000, except (A) pursuant to an existing Contract for fair consideration, (B) as may be reasonably required to conduct emergency operations, repairs or replacements with respect to any asset of the Purchased Assets Business or (except C) for fair consideration fuel purchases for the Company’s assets made in the Ordinary Course of Business) of the Company;
(vix) purchase any equity interests of any Person;
(x) other than Indebtedness solely among the Company Group, create, incur, assume or otherwise become liable for (whether directly, contingently or otherwise) any Indebtedness;
(xi) make any loans to any Affiliate of the Company (other than any Subsidiary) that are not paid off or otherwise discharged at or prior to Closing;
(xii) other than in the Ordinary Course of Business, cancel or compromise any material debt or claim or waive or release any material right of the Company or any of the Subsidiaries;
(xiii) enter into any commitment(s) that would obligate the Company Group to incur capital expenditures in any calendar year in excess of 110% of the amount budgeted for capital expenditures in the aggregate for the Business in such calendar year in the proposed capital expenditures budget set forth on Schedule 8.2(b)(xiii), except as provided in Section 6.6 hereofmay be reasonably required to conduct emergency operations, repairs or replacements with respect to any asset of the Business;
(xiv) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of the Subsidiaries;
(xv) permit the Company or any of the Subsidiaries to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vixvi) cancel settle, compromise or discharge any pending or threatened Legal Proceeding (other than any Excluded Legal Proceeding or any Legal Proceeding related to property Taxes) unless the settlement, compromise or discharge of such Legal Proceeding (i) does not materially restrict any debt or claim, or waive or release any material right of the Company or any Subsidiary from competing or engaging in the activity or businesses in which they currently engage and (ii) involves payment of monetary damages not in excess of $2,500,000 individually or $5,000,000 in the aggregate; provided, however, Seller (together with its Affiliates, including the Company) shall have the exclusive right to defend against, negotiate, settle, compromise, discharge or otherwise deal with the Excluded Legal Proceedings in its sole discretion; provided, further, that, without Purchaser’s prior written consent, Seller and its Affiliates shall not enter into any such settlement, compromise or discharge (A) that results in any Lien on any of the assets of, or contains any restriction or condition that would adversely affect, except in any immaterial respect, the Ordinary Course future conduct of, any member of Businessthe Company Group or the Business or (B) would require any member of the Company Group to pay any amount with respect thereto.
(xvii) make or rescind any material election relating to Taxes or, except as required by applicable Law or GAAP, make any material change to any of its methods of Tax accounting or methods of reporting income or deductions for Tax;
(viixviii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment changes in financial accounting methods, principles or incur any Liability to any labor organization with respect to any Employeepractices (or change an annual accounting period), except insofar as may be required by a change in GAAP or applicable Law;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxix) enter into or modify in any transaction material respect, terminate, cancel, renew or enter into, modify or renew assign any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability material Permit of the Business, Company or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property LicenseSubsidiaries, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle other than any such Permit that will expire or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result be satisfied in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up full prior to the maximum amounts and other terms as in effect on the date of this AgreementClosing; or
(xviixx) agree to do anything (A) prohibited by this Section 6.28.2.
(c) Notwithstanding anything contained in this Section 8.2 to the contrary and except as set forth on Schedule 8.2(c), (B) that would make any of from the representations and warranties date hereof until the Closing Date, the Company Group shall enter into Hedge Contracts to hedge risk of the Company Group (which Hedge Contracts will be subject to the entry into a Back-to-Back Trade on the Closing Date in this Agreement accordance with Section 8.14) with a maturity date, settlement date, final delivery date or any scheduled termination date later than September 30, 2016 only upon the request of the Purchaser, and then only in accordance with the Company Documents untrue or incorrect in any material respect or could result in any Group’s policies and procedures, including risk policies. For the avoidance of doubt, products subject to periodic auctions, including forward capacity Contracts and congestion revenue rights, shall not be considered Hedge Contracts for purposes of the conditions to restriction set forth in the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyimmediately preceding sentence.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingParent, the Company Seller shall:
(i) conduct the Business its business only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons persons having business dealings with the Company (including customers and suppliers)it;
(iii) maintain (A) all of the its assets and properties ofin their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the its properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the its books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the Company;applicable to its operation; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Parent, the Company Seller shall not:
(i) except for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, borrow monies for any reason or draw down on any line of credit or debt obligation, or become the guarantor, surety, endorser or otherwise liable for any debt, obligation or liability (Acontingent or otherwise) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyperson;
(ii) subject to any Lien (A) createexcept for liens that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), incur, assume, guarantee, endorse any of its properties or otherwise become liable or responsible with respect to assets (whether directly, contingently tangible or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personintangible);
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets its material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice);
(iv) cancel or compromise any debt or claim or waive or release any material right except in the ordinary course of the Companybusiness consistent with past practice;
(v) except as provided enter into any commitment for capital expenditures in Section 6.6 hereofexcess of $10,000 for any individual commitment and $25,000 for all commitments in the aggregate;
(vi) introduce any material change with respect to its operation, including any material change in the types, nature, composition or quality of its products or services, experience any material change in any contribution of its product lines to its revenues or net income, or, other than in the ordinary course of business, make any change in product specifications or prices or terms of distributions of such products;
(vii) enter into any transaction or make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(viii) enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsperson;
(ix) except for transfers of cash pursuant to normal cash management practices, make any investments in or loans to, or pay any fees or expenses to, or enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementcontract with any Affiliate; or
(xviix) agree to do anything (A) prohibited by this Section 6.2, (B) that 5.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of the conditions to time through and including the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyDate.
Appears in 1 contract
Samples: Asset Purchase Agreement (TheRetirementSolution.com, Inc.)
Conduct of the Business Pending the Closing. Until the Closing or the termination of this Agreement, except as otherwise set forth in Schedule 5.2 or contemplated by this Agreement, Auric shall comply with the provisions set forth below:
(a) Except as otherwise expressly provided by this Agreement or with Auric shall operate the prior written consent of Newco, between the date hereof and the Closing, the Company shall:
(i) conduct the Business only business in the Ordinary Course of Businessordinary course;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting Auric shall not grant any general increase in the generality rates of salaries or compensation of its employees or any specific increase to any employee except such as are in accordance with regularly scheduled periodic increases;
(c) Except as provided for under the foregoingexisting Benefit Plans, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company Auric shall not:
not (i) grant or agree to grant any bonuses to any employee, or (Aii) increase the salary provide for any new pension, retirement or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation employment benefits to any Employee of its employees or director, (C) any increase the coverage or benefits available under in any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyexisting benefits;
(iid) (A) create, incur, assume, guarantee, endorse Auric shall not amend its Certificate of Incorporation or otherwise become liable Bylaws or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Personagreement;
(e) Auric shall use commercially reasonable efforts to maintain and preserve in all material respects its business, and to maintain its existing relationships with customers, suppliers, employees and other business associates;
(f) Other than in the ordinary course of business, Auric shall not engage sell, assign, voluntarily encumber, grant a security interest in any new business or invest in, make a loan, advance or capital contribution license with respect to, or otherwise acquire the securities dispose of, any of any Person;
(vi) cancel its material assets or compromise any debt properties tangible or claimintangible in excess of $100,000, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xivg) take Auric shall maintain in full force and effect all insurance currently maintained by Auric; and
(h) No Benefit Plan, nor any trust established thereunder, shall be amended or terminated by formal action which would adversely affect of Auric after the ability date copies thereof are disclosed, and no Benefit Plan or trust relating thereto shall be amended or terminated by formal action of Auric prior to the parties Effective Date, except as an amendment may be necessary to consummate effect the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except Agreement so long as any such amendment does not adversely affect Auric's interests in the Ordinary Course of Business under loan Benefit Plan being amended, or credit agreements or arrangements up as may be adopted as a condition to the maximum amounts issuance of a favorable determination letter by the IRS, or as otherwise may be required to comply with the requirements of ERISA and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyCode.
Appears in 1 contract
Samples: Merger Agreement (Om Group Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (1) as otherwise expressly provided contemplated by this Agreement or (2) with the prior written consent of NewcoPurchasers (which consent shall not be unreasonably withheld or delayed) or (3) as may be required to comply with the debtor in possession budget agreed upon in connection with the debtor in possession credit facility as such budget may be amended from time to time with the consent of the Purchasers (provided, between however, that Purchasers shall not unreasonably withhold or delay their consent to such amendment) (the date hereof and the Closing"DIP Budget"), the Company Sellers shall:
(i) operate the Business in a manner consistent with the DIP Budget;
(ii) maintain all of the Purchased Assets in good repair, condition and working order, reasonable wear and tear excepted, for the uses in which they are currently used in the Business;
(iii) maintain in full force and effect all policies of insurance covering the Business and the Purchased Assets;
(iv) conduct the Business only in the Ordinary Course of Business;; and
(iiv) use its commercially their reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business, and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all suppliers of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting Except (1) as may be required by the generality of the foregoingDIP Budget, except (2) as otherwise expressly provided contemplated by this Agreement or (3) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), solely as it relates to the Company Business, Sellers shall not:
(i) (A) materially increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Businessemployee, (B) increase the annual level of compensation payable or to become payable by any Seller to any of its respective executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Employee Benefit Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (DE) enter into or amend any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company any Seller is a party; party or (E) pay involving a director, officer or make employee of any dividend Seller in his or distribution her capacity as a director, officer or employee of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) createsuch Seller, incurexcept, assumein each case, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy as required by applicable Law from time to time in effect or by any Indebtedness issued of the Employee Benefit Plans or guaranteed by the Company; Pension Plans;
(C) materially modify the terms of any Indebtedness or other Liability; or (Dii) make any loans, advances material change to any of capital contributions to, or investments in, any other Persontheir methods of accounting unless required by GAAP;
(iii) subject acquire or agree to acquire any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsbusiness;
(iv) acquire any material properties or assets or sellsell (including by sale-leaseback), assign, licenselease, transfer, conveylicense (whether on an exclusive or non-exclusive basis), lease mortgage or otherwise dispose of of, encumber or subject to any of the Lien, any Purchased Assets (except for fair consideration or interests therein, other than sales of Inventory in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereofsell, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution totransfer, or otherwise acquire the securities dispose of, encumber or subject to any Lien, any capital stock of any or interest in any Person;
(vi) cancel commence or compromise continue any debt "going out of business" or claiminventory liquidation sales or offer any discounted sales of Inventory, other than quantity discounts heretofore offered by Sellers in the usual, regular and Ordinary Course of Business, consistent with past practice;
(vii) enter into any contract, license or other agreement that contains any provision that, as a result of the consummation of the transactions contemplated by this Agreement or the Ancillary Agreements, would (assuming that the other party's consent or approval is not obtained, to the extent required) result in any penalty, additional payments or forfeiture that would be payable on or after the Closing Date;
(viii) modify, amend or supplement any Purchased Contracts, or waive terminate any Purchased Contracts except in accordance with the terms thereof;
(ix) make any single new commitment or release related series of commitments or increase any material right single previous commitment or related series of commitments for capital expenditures for the Business in an amount exceeding fifty thousand dollars ($50,000) nor make any commitments or increase any previous commitments for capital expenditures for the Business in an amount exceeding fifty thousand dollars ($50,000) in the aggregate;
(x) accelerate or delay the sale of the Company goods or services of the Business, except as may be necessary in the Ordinary Course of Business;
(xi) sell, assign, transfer, license, abandon or convey any Purchased Intellectual Property except in the Ordinary Course of Business;
(viixii) enter intoexcept as would not adversely affect Purchasers, modify or terminate any labor or collective bargaining agreement orthe Business and the Purchased Assets, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce settle any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000regarding Taxes;
(xiii) change perform any act which would cause any representation, warranty, covenant, condition or modify its creditagreement of Sellers in this Agreement or the Ancillary Agreements to be or become untrue in any respect or intentionally omit to take any action necessary to prevent any such representation, collection warranty, covenant, condition or payment policiesagreement from being or becoming untrue in any respect, procedures or practicesand will comply in all respects with all Laws applicable to the Business, including acceleration the Purchased Assets and all of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesthe Permits;
(xiv) take waive or compromise any action which would adversely affect the ability of the parties material claim or right or fail to consummate the transactions contemplated by this Agreement;renew any Permit; and
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, 8.2.
(Bc) that Sellers will promptly notify Purchasers in writing of (i) any event known to Sellers which would make render any representation or warranty of the representations and warranties of the Company Sellers contained in this Agreement or any Ancillary Agreement, if made on or as of the Company Documents date of such event or the Closing Date, untrue or incorrect in inaccurate, (ii) any material respect change, condition or event that has or could result in any of the conditions to the Closing not being satisfied or (C) that could reasonably be reasonably expected to have a Material Adverse Effect or (iii) any failure of Sellers to comply with respect or satisfy any covenant, condition or agreement to be complied with or satisfied hereunder. Notwithstanding the Companydisclosure to Purchasers of any matter pursuant to this Section 8.2(c), Sellers shall not be relieved of any Liability for, nor shall the provision of such information by Sellers to Purchasers be deemed a waiver of, the breach of any representation, warranty, covenant, condition or agreement of Sellers contained in this Agreement or any Ancillary Agreement.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company including, but not limited to all Company Intellectual Property and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain (A) all of the assets and properties of, or used by, of the Company consistent with past practicein their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(A) maintain the books, accounts and records of the Company in the ordinary course of business consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable utilizing normal procedures and without discounting or accelerating payment of such accounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;
(v) comply in all material respects with applicable laws, including, without limitation, Environmental Laws; and
(vi) Shall not enter into a material agreement including, but not limited to, any asset acquisition, purchase or disposition or any financing arrangement whether debt and/or equity.
(b) Except as otherwise expressly contemplated by this Agreement or with the prior written consent of the Sellers, the Purchaser shall:
(i) conduct the businesses of the Purchaser only in the ordinary course consistent with past practice;
(ii) (A) preserve its present business operations, organization (including, without limitation, management and the sales force) and goodwill of the Purchaser including, but not limited to all Company Intellectual Property and (B) preserve its present relationship with Persons having business dealings with the Purchaser;
(iii) maintain (A) all of the assets and properties of the Company Purchaser in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Purchaser in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Purchaser in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the CompanyPurchaser;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable laws, including, without limitation, Environmental Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viiivi) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonmentShall not enter into a material agreement including, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made but not limited to, forany asset acquisition, purchase or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding disposition or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (financing arrangement whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companydebt and/or equity.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 8.2(a), (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the Company shall, and shall cause its Subsidiaries to:
(i) conduct the Business respective businesses of the Company and its Subsidiaries only in the Ordinary Course of Business;; and
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and its Subsidiaries, and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties suppliers of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companyits Subsidiaries.
(b) Without limiting the generality of the foregoingExcept (i) as set forth on Schedule 8.2(b), except (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, delayed or conditioned), the Company shall not, and shall not permit its Subsidiaries to:
(i) repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of its Subsidiaries;
(ii) issue or sell any shares of capital stock or other securities of the Company or any of its Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company or any of its Subsidiaries;
(iii) effect any recapitalization, reclassification or like change in the capitalization of the Company or any of its Subsidiaries;
(iv) amend the organizational documents of the Company or any of its Subsidiaries;
(A) materially increase the salary or other annual level of compensation of any director or Employee executive officer of the Company except for normal year-end increases in the Ordinary Course or any of Businessits Subsidiaries, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director or directorexecutive officer, (C) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives employees of the Company or any of its Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or any of its Subsidiaries is a party; party or (E) pay or make involving any dividend or distribution of cash or other property with respect to the units or other equity interests employee of the Company;
(ii) (A) createCompany or any of its Subsidiaries, incurexcept, assumein each case, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed as required by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonCompany Benefit Plans;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvi) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets of the Company or any of its Subsidiaries (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) Business or for the purpose of the Companydisposing of obsolete or worthless assets);
(vvii) except as provided other than in Section 6.6 hereofthe Ordinary Course of Business, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any material debt or claim, claim or waive or release any material right of the Company except in the Ordinary Course or any of Businessits Subsidiaries;
(viiviii) except as provided for in the Company's annual budget for the 2005 fiscal year (a copy of which has been delivered to the Purchaser), enter into any commitment for capital expenditures of the Company and its Subsidiaries in excess of $100,000, or its equivalent in Rupees or other currencies, for any individual commitment and $500,000, or its equivalent in Rupees or other currencies, for all commitments in the aggregate;
(ix) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation negotiations or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Businessorganizations;
(x) enter into or agree to enter into any Contract, understanding merger or commitment that restrains, restricts, limits consolidation with any corporation or impedes the ability of the Businessother entity, or acquire the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment securities of any personsother Person;
(xi) terminate, amend, restate, supplement enter into or waive modify any rights under Contract with the Seller or any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in Affiliate of the Ordinary Course of Business or (B) PermitSeller;
(xii) except to the extent consistent with past practice or as otherwise required by Law, make or rescind any material election relating to Taxes, settle or otherwise compromise any pending claim, investigation, audit or threatened Legal Proceeding or any claim or claims for, or that would result in controversy relating to a loss material amount of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000Taxes;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts extent required by Law or Indian GAAP or International Accounting Standards, as applicable, make any material change to any of its methods of accounting or methods of reporting revenue and other terms as in effect on the date of this Agreementexpenses or accounting practices; or
(xviixiv) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company8.2.
Appears in 1 contract
Conduct of the Business Pending the Closing. Except (aA) Except as required by applicable Law, (B) as otherwise expressly provided contemplated by this Agreement Agreement, or (C) with the prior written consent of Newcothe Purchaser (which consent may be withheld, between delayed or conditioned):
(a) the Company shall, from the date hereof and prior to the Closing, the Company shallClosing Date:
(i) conduct the Business only its respective businesses in the Ordinary Course of BusinessBusiness including the maintenance of all records;
(ii) use its commercially reasonable best efforts to (A) preserve the present business operations, organization (including officers and Employees) operations and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)its business;
(iii) maintain (A) all confer with Purchaser prior to implementing operation decisions of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementa material nature;
(iv) (A) maintain report to Purchaser at such times as Purchaser may reasonably request concerning the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations status of the Company;
(v) comply maintain the assets owned or used by the Company in a state of repair and conditions that complies with the capital expenditure plan Company’s Contracts and is consistent with the requirements and normal conduct of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such planCompany;
(vi) comply in all material respects with all applicable LawsContracts of the Company;
(vii) take steps to renew continue in full force and effect all Permits in a timely manner prior to their lapseinsurance coverage of the Company; and
(viii) pay all maintenance and similar fees and take all other appropriate actions no action, or fail to take any reasonable action within its control, as necessary to prevent the abandonment, loss or impairment a result of all Intellectual Property which any of the Companychanges or events listed in Section 4.9 would be likely to occur.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not, from the date hereof prior to the Closing Date:
(i) amend any of its organizational documents;
(Aii) increase the salary declare, set aside or pay any dividend or make any other distribution in respect of any shares of capital stock (or other compensation equity interest) of the Company;
(iii) repurchase, redeem or acquire any director outstanding shares of capital stock (or Employee other equity interest) or other securities of, or other ownership interest in, the Company;
(iv) award or pay any bonuses to any physicians who provide services, professional or otherwise, on behalf of the Company except for normal year-end increases in the Ordinary Course of Business(collectively, “Physicians”) or any persons (Bother than Physicians) grant any bonuswho are employees, benefit independent contractors or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any consultants of the directors, officers, Employees, agents or representatives Business as of the Company or otherwise modify or amend or terminate any such plan or arrangement date hereof (Dcollectively, the “Business Employees”), ;
(v) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition severance or similar agreement or arrangement with any directors or officers of the Company (or amend nor amended any such agreement) or agree to which increase the Company is a party; compensation payable or (E) pay or make to become payable by it to any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company’s directors, officers, employees, agents or representatives or agree to increase the coverage or benefits available under the Company Benefit Plan (as defined in Section 4.12(a));
(iivi) change its accounting or Tax reporting principles, methods or policies;
(Avii) createmake or rescind any election relating to Taxes, incur, assume, guarantee, endorse settled or otherwise become liable or responsible with respect compromised any claim relating to Taxes;
(whether directly, contingently or otherwiseviii) any Indebtedness fail to promptly pay and discharge current Liabilities except where disputed in good faith by appropriate proceedings;
(u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (Dix) make any loans, advances of or capital contributions to, or investments in, any other Person;
(iii) subject Person or paid any fees or expenses to any Lien director, officer, partner, stockholder or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of BusinessAffiliate;
(x) enter into mortgage, pledge or subject to any ContractLien any of its assets, understanding properties or commitment that restrains, restricts, limits or impedes the ability of rights relating to the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement enter into or waive amend any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle make or compromise commit to make any pending or threatened Legal Proceeding or any claim or claims for, or that would result capital expenditures in a loss excess of revenue of, an amount that could, $10,000 individually or $25,000 in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change issue, create, incur, assume or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesguarantee any Indebtedness;
(xiv) take suffer any action which would adversely affect material change in the ability productivity or compensation of the parties to consummate the transactions contemplated by this AgreementPhysicians;
(xv) amend the operating agreement of the Companyinstitute or settle any Legal Proceeding without Purchaser’s written consent;
(xvi) agree to materially increase Liabilities from borrow any amount, take out any Loans, guarantee any Loans of any Person or become the amounts set forth on the Balance Sheet except in the Ordinary Course transferee or assignee of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementany Loans; or
(xviixvi) agree agree, commit, arrange or enter into any agreement to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyforegoing.
Appears in 1 contract
Samples: Stock Purchase Agreement (Apollo Medical Holdings, Inc.)
Conduct of the Business Pending the Closing. Seller hereby covenants that, from the date hereof to and including the Closing Date, unless Purchaser shall otherwise agree (which agreement shall not be unreasonably withheld) or as otherwise contemplated by this Agreement:
(a) Except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, between the date hereof Seller's business shall be conducted and the Closing, the Company shall:
(i) conduct the Business only Manufacturing Assets shall be repaired and maintained in the Ordinary Course of Businessordinary and usual course, in a manner consistent with past practice;
(iib) use its commercially reasonable efforts to (A) preserve except in the present ordinary course of business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company Seller shall not:
not (i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property commitment to make any capital expenditures after the Closing Date with respect to the units Business individually in excess of $5,000 or other equity interests in the aggregate in excess of the Company;
$25,000; (ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any capital assets of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation Business with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that couldbook value, individually or in the aggregate, reasonably be expected in excess of $5,000 or encumber any of its capital assets; (iii) amend any of its material contracts that are part of the Business or (iv) grant any increases in employee compensation to be greater than $50,000an employee engaged in the Business, except pursuant to normal performance reviews;
(xiiic) change or modify Seller shall use its credit, collection or payment policies, procedures or practices, including acceleration best efforts to preserve for Purchaser the goodwill of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesall persons dealing with Seller in connection with the Business;
(xivd) take any action which would adversely affect Seller shall cooperate fully with Purchaser as to arrangements for the ability transfer of the parties Manufacturing Assets to consummate the transactions contemplated by this AgreementPurchaser in an orderly fashion;
(xve) amend Seller shall maintain in full force and effect all insurance policies now in effect or renewals thereof covering the operating agreement of Manufacturing Assets or its business and the Companyemployees employed in the Business and shall cooperate fully with Purchaser as to arrangements for obtaining insurance policies concerning the Manufacturing Assets and insurance and related benefits for the New XeTel Employees in accordance with the terms hereof in an orderly fashion after Closing;
(xvif) agree Seller shall promptly notify Purchaser of (i) any breach or violation of, default or event of default under, or actual or threatened termination or cancellation of any material contract or other material instrument relating to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2its business, (Bii) that would make any material loss of, damage to, or disposition of any of the representations Manufacturing Assets (other than the sale or use of inventories in the ordinary course of business), and warranties of the Company in this Agreement (iii) any claim or litigation, threatened or instituted, or any of the Company Documents untrue other material adverse event or incorrect in any material respect occurrence involving or could result in any of the conditions to the Closing not being satisfied or affecting its business;
(Cg) that could be reasonably expected to have a Material Adverse Effect Seller shall consult with Purchaser with respect to any collective bargaining negotiations affecting the CompanyBusiness;
(h) Except as set forth in the Disclosure Letter, Seller has not agreed to, and shall not, sell, dispose of, distribute, encumber or enter into any agreement, arrangement or commitment, whether oral or written, for the sale, disposition, distribution or encumbrance of any portion of the Business (other than the sale or use of inventories in the ordinary course of business) and has not initiated and has not participated (nor shall it participate except to the extent in the reasonable opinion of Seller's counsel participation is necessary for Seller's Board of Directors to discharge its fiduciary duties to Seller's Shareholders) through agents, representatives or otherwise, in any discussions or negotiations with, or otherwise solicit from, any corporation, business or person any proposals or offers relating to any such disposition of any such portion of the Business, and no such action is contemplated by Seller as of the Closing Date.
Appears in 1 contract
Samples: Asset Purchase Agreement (Sbe Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Company shallSeller shall use their best efforts, and shall cause Pentec or PCM to:
(i) conduct Conduct the Business businesses of Pentec or PCM only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company Pentec and PCM and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers Pentec and suppliers)PCM;
(iii) maintain Maintain (A) all of the assets and properties ofof Pentec and PCM in their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of Pentec and properties of the Company PCM in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Pentec and PCM in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;Pentec and PCM; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not, and shall cause Pentec and PCM not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of Pentec or PCM or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, Pentec or PCM;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of Pentec or PCM or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of Pentec or PCM;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of Pentec or PCM;
(iv) Amend the certificate of incorporation or by-laws of Pentec or PCM;
(A) materially increase the salary or other annual level of compensation of any director employee of Pentec or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessPCM, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Pentec or PCM is a party; party or (E) pay involving a director, officer or make any dividend employee of Pentec or distribution PCM in his or her capacity as a director, officer or employee of cash Pentec or other property with respect to the units or other equity interests of the CompanyPCM;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of Pentec or PCM;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of Pentec or PCM except, with respect to the Companyitems listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of Pentec or PCM except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures or the purchase of assets out of the ordinary course in excess of $5,000;
(xi) Permit Pentec or PCM to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit Pentec or PCM to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit Pentec or PCM to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection the Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Samples: Stock Purchase Agreement (National Investment Managers Inc.)
Conduct of the Business Pending the Closing. (a) Except (1) as otherwise expressly provided set forth on Schedule 8.2(a), (2) as required by this Agreement applicable Law, or (3) with the prior written consent of NewcoPurchaser in its sole and absolute discretion, between during the period from the date hereof of this Agreement to and through the ClosingClosing Date, the Company Sellers shall:
(i) conduct the Business only in the Ordinary Course of Business, including, without limitation, with respect to (a) the pricing and terms of sale of inventory, (b) the timing, discounting and other practices in connection with the collection of accounts receivable, (c) the timing and other practices for payment of account payables and (d) compensation, bonuses, benefits and severance payable to Employees, subject to and in accordance with the further limitations set forth in Section 9.1(a);
(ii) use its their commercially reasonable efforts to (Aa) keep their assets intact and maintain their assets in at least as good a condition as their current condition (reasonable wear and tear excepted), (b) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business, and (Bc) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)suppliers of the Business;
(iii) maintain perform in all material respects its obligations arising after the Petition Date under any Contract (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementincluding Real Property Leases);
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws that relate to or affect its assets and business or such Person’s ownership and/or use or operation thereof, including the timely, complete and correct filing of all reports and maintenance of all records required by any Governmental Authority to be filed or maintained;
(v) continue to use and operate all assets and all aspects of its business used or operated by the Sellers as of the date hereof in a manner consistent with prior practice and in accordance in all material respects with all applicable Laws, and not enter into any contract nor otherwise act, nor suffer or permit any other Person to act, to restrict, interfere with or prevent the use or operation of such assets or business;
(vi) promptly notify Purchaser in writing of any incidents or accidents occurring on or after the date hereof involving any assets or property owned or operated by the Sellers that resulted or could reasonably be expected to result in damages or losses to any portion of the business of the Sellers or damages in excess of $100,000;
(vii) take steps promptly notify Purchaser in writing of the existence of any adverse business conditions arising on or after the date hereof threatening the continued, normal business operations of the Sellers or of any agreement, consent or order of any Governmental Authority involving any of the Sellers;
(viii) promptly notify Purchaser of any Legal Proceeding of the type described in Section 5.12 commenced after the date hereof and/or, to renew all Permits the Knowledge of Sellers, threatened after the date hereof against the Sellers;
(ix) provide prompt written notice to Purchaser (i) of any change in a timely manner prior any of the information contained in the representations and warranties made by the Sellers in Article V hereof or any exhibits or schedules referred to their lapseherein or attached hereto, including any Schedules and shall promptly furnish any information that Purchaser may reasonably request in relation to such change; provided, however, that such notice shall not operate to cure any breach of the representations and warranties made by the Company herein or any exhibits or schedules referred to herein or attached hereto, including any Schedules; and
(viiix) pay all maintenance and similar fees and take all other appropriate actions as necessary provide prompt written notice to prevent the abandonment, loss or impairment of all Intellectual Property Purchaser of the Company.occurrence of any event that results in or would reasonably be expected to result in a failure to satisfy any of the conditions set forth in Article X.
(b) Without limiting the generality of the foregoingExcept (1) as set forth on Schedule 8.2(b), except (2) as otherwise expressly provided required by this Agreement applicable Law, or (3) with the prior written consent of NewcoPurchaser in its sole and absolute discretion, during the Company period from the date of this Agreement to and through the Closing Date, Sellers shall not:
(i) (A) increase the salary take any action as a result of which any representation or other compensation of any director or Employee warranty of the Company except for normal year-end increases Sellers made in Article V would be rendered untrue or incorrect if such representation or warranty were made immediately following the Ordinary Course of Business, (B) grant any bonus, benefit taking or other direct or indirect compensation failure to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any take such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyaction;
(ii) (A) createmake or rescind any material election relating to Taxes, incursettle or compromise any material claim, assumeaction, guaranteesuit, endorse litigation, proceeding, arbitration, investigation, audit or otherwise become liable controversy relating to Taxes, or responsible with respect except as may be required by applicable Law or GAAP, make any material change to (whether directly, contingently any of its methods of accounting or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course preparation of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personits most recent Tax Returns;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased AssetsAssets to any Lien, except for Liens existing as of the date hereof;
(iv) acquire any material properties or assets other than in the Ordinary Course of Business, or enter into any partnership, joint venture or similar arrangement (including, but not limited to, the contemplated joint venture with a Pakistani company for the formation and operation of a manufacturing facility near Lahore, Pakistan), or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets Seller’s assets other than inventory in the Ordinary Course of Business and obsolete or worthless equipment permitted to be sold pursuant to the DIP Credit Agreement;
(except v) cancel, compromise or settle any debt or claim or waive or release any right in excess of $20,000 individually and $250,000 in the aggregate or, in connection with Trade Payables, accounts payable to employees for fair consideration travel and entertainment expense, workers’ compensation payments, or trade receivables, other than in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise enter into any debt or claim, or waive or release any material right commitment for capital expenditures in excess of the Company except $250,000 for all commitments in the Ordinary Course of Businessaggregate except for capital expenditure projects described by project and amount as line items as set forth on Schedule 8.2(b) hereof not to exceed the amount for each such category as described and set forth in such schedule;
(vii) enter into, modify or terminate any labor or collective bargaining agreement Collective Bargaining Agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employeeorganization;
(viii) introduce incur any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, Indebtedness other than in the Ordinary Course of its Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into assign, modify, cancel, otherwise impair or permit to lapse any transaction Material Contract (other than expiration in accordance with the terms thereof as a result of the passage of time and other than Real Property Leases as to which Section 8.2(b)(x) applies ) involving annual expenditures, purchases or enter intorevenues in excess of $100,000 annually;
(x) assign, modify sublease, amend in any material respect, terminate, exercise (or renew waive) or permit to lapse any Contract which by reason options to renew, options to expand or options to purchase pursuant to any Real Property Leases involving expenditures in excess of its size or otherwise is not $100,000 annually (other than expiration in accordance with the terms thereof as a result of the passage of time);
(xi) make any payments (a) in respect of professional fees for attorneys and accountants except to the extent and on the timing permitted under existing interim compensation and fee application procedures (other than professional fees payable to ordinary course professionals to the extent authorized to be paid under the existing Order of the Bankruptcy Court signed on 6/3/03 Authorizing Retention and Compensation of Professionals Utilized in the Ordinary Course of Business;
), (xb) enter into any Contractunder, understanding in respect of or commitment that restrains, restricts, limits or impedes pursuant to the ability KERP Program (other than the existing scheduled payment for the second quarter of 2005 pursuant to the BusinessKERP Order), or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment fees and expenses of any persons;
financial advisor of Sellers (xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than monthly fees in the Ordinary Course of Business currently approved amounts pursuant to existing procedures) or (Bc) Permit;
(xii) settle in respect of fees and expenses of any broker or compromise any pending finder of Sellers except as consented to by Purchaser and except for such fees and expenses of a broker or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up finder relating to the maximum amounts and other terms as in effect on sale of real property by Sellers which are approved by the date of this AgreementBankruptcy Court prior to June 30, 2005; or
(xviixii) agree to do anything (A) prohibited by this Section 6.2, 8.2.
(Bc) that would make any During the period from the date of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to and through the Closing Date, Sellers shall not being satisfied declare, authorize, make or (C) that could be reasonably expected enter into a commitment to have a Material Adverse Effect with respect to the Company.make
Appears in 1 contract
Samples: Asset Purchase Agreement
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement Agreement, or as expressly required to effect the Pre-Sale Reorganization or with the prior written consent of NewcoPurchaser (such consent not to be unreasonably withheld or delayed), between Sellers shall, and Sellers shall cause the date hereof Company and the Subsidiaries, pending Closing, the Company shallto:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers and Employeesemployees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)Subsidiaries;
(iii) maintain (A) all of the properties and assets and properties of, (whether tangible or used by, intangible) of the Company consistent with past practiceand the Subsidiaries in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties (whether tangible or intangible) of the Company and the Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company, the Company and the Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the CompanyCompany and the Subsidiaries;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(vsubject to Section 7.2(xi), including make on a timely basis and not delay the making such of planned capital expenditures in the amounts and at the times set forth in such plan;expenditures; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser (such consent not to be unreasonably withheld or delayed), Sellers shall not, and Sellers shall cause the Company shall notand the Subsidiaries not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of, or other ownership interests in, the Company or any of the Subsidiaries or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or interests in, the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or interests in, the Company or any of the Subsidiaries;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of the Company or any of the Subsidiaries, or amend the terms of any outstanding securities of the Company or any of the Subsidiaries;
(iv) amend the memorandum of association, articles of association, certificate of incorporation or by-laws or equivalent organizational documents of the Company or any of the Subsidiaries;
(v) other than in the Ordinary Course of Business (A) increase the salary or other compensation of any director officer or Employee employee of the Company or any of the Subsidiaries, except for normal year-end increases in the Ordinary Course of Businessincreases, (B) grant any bonusunusual or extraordinary bonus (excluding any Employee Bonus), benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or any of the Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company or any of the Subsidiaries (or amend any such agreement) agreement to which the Company or any of the Subsidiaries is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company);
(iivi) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently contingently, or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the CompanyCompany or any of the Subsidiaries; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonPerson (other than to wholly-owned Subsidiaries in the Ordinary Course of Business);
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company or any of the Subsidiaries;
(ivviii) acquire any material properties or assets (whether tangible or intangible) or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration whether tangible or intangible) of the Company and the Subsidiaries, other than in the Ordinary Course of Business) of Business or in connection with the CompanyPre-Sale Reorganisation;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company or any of the Subsidiaries except in the Ordinary Course of Business;
(viixi) enter into any commitment for capital expenditures of the Company and the Subsidiaries in excess of $50,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of the Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company or any Employeeof the Subsidiaries;
(viiixiii) introduce any material change with respect to the operation of the BusinessCompany or any of the Subsidiaries, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxiv) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, permit the Company or any of the Subsidiaries to make any investments in or loans to, or pay any fees or expenses to, or enter into any transaction or enter into, modify or renew any Contract which by reason with any Affiliate of the Company or any of the Subsidiaries, or any director, officer or employee of the Company or any of the Subsidiaries;
(xv) make a change in its size accounting or otherwise is not Tax reporting principles, methods or policies other than in the Ordinary Course of Business;
(xxvi) other than in the Ordinary Course of Business, make or revoke any material Tax election, or settle or compromise any material Tax liability or enter into a settlement or compromise with respect thereto, or change (or make a request to any taxing authority to change) any material aspect of its method of accounting for Tax purposes;
(xvii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco the Company or Purchaser, any of the Subsidiaries to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixviii) terminate, amend, restate, supplement or waive any rights under any (A) Permit, Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) PermitBusiness;
(xiixix) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiiixx) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;; |
(xivxxi) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;; and
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxii) agree to do anything (A) prohibited by this Section 6.2, 7.2(b) or (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffect.
Appears in 1 contract
Samples: Share Purchase Agreement (Altra Industrial Motion, Inc.)
Conduct of the Business Pending the Closing. The Seller agrees that from the date hereof through the Closing Date, the Business will be conducted only in the usual and ordinary course consistent with past practice, and, except as may be permitted by this Agreement, or approved in writing in advance by Purchaser, the Seller agrees as follows:
(a) The Seller will, so far as it is within its power to do so, carry on the Business substantially in the same manner as heretofore conducted, and the Seller shall not institute any new methods of acquisition, production, marketing, distribution, sale, lease, license, management, operation, or engage in any transaction or activity, enter into any agreement or make any commitment, except in the ordinary course of business and consistent with past practice.
(b) The Seller shall not institute any new methods of accounting relating to the Business.
(c) The Seller shall use commercially reasonable efforts to preserve the Business intact, to protect and preserve the Seller's assets, and preserve its relationships with licensors, suppliers, distributors, customers, contractors and employees.
(d) Except as otherwise expressly provided by specifically permitted pursuant to this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingAgreement, the Company shallSeller shall not, with respect to the Business:
(iA) conduct the Business only Borrow or agree to borrow any funds or (B) incur, or assume or become subject to, whether directly or by way of guarantee or otherwise, any obligation or liability (absolute or contingent), in the Ordinary Course case of Business(A) or (B) that would be an Assumed Liability, except in the case of clause (B) obligations and liabilities incurred in the ordinary course of business and consistent with past practice;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill Permit or allow any of the Company and Acquired Assets to be subjected to any Encumbrance of any kind or description (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliersexcept Encumbrances created by law);
(iii) maintain Dispose of or permit to lapse any rights to the use of any Intellectual Property included among the Acquired Assets (Aand the Seller shall take all commercially reasonable actions in respect of any infringement of any Intellectual Property of which it has knowledge), or dispose of or, except in the ordinary course of business, disclose to any Person any trade secret, formula, process or know-how not theretofore a matter of public knowledge relating to the Business;
(iv) all Make any single capital expenditure or future commitment relating to the Business in excess of $20,000 for additions to property, plant or equipment or make aggregate capital expenditures or future commitments in excess of $50,000 for additions to property, plant or equipment; provided, however, that this restriction shall not apply to expenditures required to fulfill obligations to customers of the Business;
(v) Sell, transfer or lease (other than in the ordinary course of business consistent with past practices) any of the Acquired Assets to, or enter into any agreement or arrangement with, any Affiliate of the Seller;
(vi) Grant or extend any power of attorney or act as guarantor, surety, co-signer, endorser, co-maker, indemnitor or otherwise in respect of the obligation of any Person;
(vii) Other than in the ordinary course of business consistent with past practice, distribute any property to any employee of the Seller engaged in the Business;
(viii) Grant to any officer or employee engaged in the Business any increase in compensation or benefits, other than increases in compensation or benefits for employees in the ordinary course of business consistent with past practice;
(ix) Pay any pension, retirement allowance or other employee benefit not required by any Benefit Plan of the Seller in existence on the date hereof;
(x) Adopt, agree to adopt, or make any announcement regarding (i) the adoption of any new pension, retirement or other employee benefit plan, policy or program that applies only to employees of the Business, or (ii) adoption of any amendments to any Benefit Plan of the Seller in existence on the date hereof that applies only to employees of the Business, unless otherwise required by applicable law; or
(xi) Agree, whether in writing or otherwise, to do any of the foregoing.
(e) From the date hereof through the Closing Date, the Seller shall give prompt written notice to Purchaser of any material casualty losses or damages with respect to the Acquired Assets (whether or not any such loss or damage shall have been covered by insurance) and, if such loss is insured, the Seller shall promptly notify the carrier and make a claim;
(f) No contract or commitment will be entered into, and no purchase of supplies and no sale of any of the Seller's assets and properties will be made, by or on behalf of the Seller in respect of the Business, except (i) normal contracts or commitments for the purchase of, and normal purchases of, supplies or used byinventory or for the sale of inventory, in each case made in the Company ordinary course of business and consistent with past practice, and (Bii) other contracts, commitments, purchases or sales in the ordinary course of business and consistent with past practice.
(g) The Seller shall maintain insurance upon all on the Acquired Assets consistent with past practices and the Acquired Assets shall be used, operated, maintained and repaired in the ordinary course of business consistent with past practice.
(h) The Seller shall not do any act or omit to do any act, or permit any act or omission to act (to the extent the Seller has control over such act or omission), which will cause a breach of any material contract or commitment of the assets and properties Seller arising out of or relating to the Company in such amounts and Business or which would cause the breach by the Seller of such kinds comparable to that in effect on the date of this Agreement;any representation, warranty, covenant or agreement made hereunder.
(ivi) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) The Seller shall duly comply in all material respects with all laws applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance it and similar fees its properties, operations, business and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of employees comprising the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except (i) as otherwise expressly provided contemplated by this Agreement Agreement, (ii) as set forth on Schedule 6.2(a), (iii) as Purchaser may consent in writing (which consent shall not be unreasonably withheld, conditioned or with delayed) and (iv) to the prior written consent extent prohibited by applicable Law or the regulations or requirements of Newcoany stock exchange or regulatory organization applicable to the Company, between the date hereof and the ClosingPurchased Companies or their Subsidiaries, the Company shall, and shall cause the Purchased Companies and their Subsidiaries to:
(i) conduct the Business respective businesses of the Company, the Purchased Companies and their Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company Company, the Purchased Companies and their Subsidiaries and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers Company, the Purchased Companies and suppliers)their Subsidiaries;
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon maintain all of the assets and properties of the Company Company, the Purchased Companies and their Subsidiaries in their current condition, ordinary wear and tear excepted and (B) maintain (to the extent available) insurance upon all of the properties and assets of the Company, the Purchased Companies and their Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Company, the Purchased Companies and their Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting discounting, deferring or accelerating payment of such accounts or Liabilities utilizing all available cash except for such actions taken in the Ordinary Course of Business that individually, and any available line of creditin the aggregate, are not material, and (C) use its commercially reasonable efforts to comply with all contractual and other obligations applicable to the operation of the Company;, the Purchased Companies and their Subsidiaries; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable laws, including, without limitation, Environmental Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided permitted by this Agreement or with as provided on Schedule 6.2(b), and except to the extent required by applicable Law or the regulations or requirements of any stock exchange or regulatory organization applicable to the Company, the Purchased Companies or their Subsidiaries, the Company shall not, and shall cause the Purchased Companies and their Subsidiaries not to (without the prior written consent of Newcothe Purchaser, the Company which consent shall not:not be unreasonably withheld, conditioned or delayed):
(i) (A) increase the salary declare, set aside, make or pay any dividend or other compensation distribution in respect of the capital stock of the Company, any of the Purchased Companies or any Subsidiaries, other than dividends or distributions by a wholly-owned subsidiary of a Purchased Company to such Purchased Company (or other than in connection with compliance with Section 6.16), or (B) other than pursuant to existing written Contracts listed on Schedule 6.2(b)(i), repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company, the Purchased Companies and their Subsidiaries;
(ii) transfer, issue, sell or dispose of any director shares of capital stock or Employee other securities of the Company, the Purchased Companies or any of their Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company, the Purchased Companies or any of their Subsidiaries, except that the Company except for normal year-end increases may (A) grant stock options under the Company Stock Plans in the Ordinary Course of Business; (B) issue shares of Company Common Stock pursuant to the ESPP and upon the exercise of options outstanding on the date hereof (or that are granted or issued after the date of this Agreement in compliance with this Agreement) under the Company Stock Plans; and (C) issue shares of Company Common Stock upon the exercise of Warrants or conversion of Convertible Securities;
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company, the Purchased Companies or any of their Subsidiaries;
(iv) amend the certificate of incorporation, articles of association, bylaws or other organizational documents of the Company, the Purchased Companies or any of their Subsidiaries;
(v) (A) increase the annual level of compensation (including equity compensation, whether payable in cash, stock or other property) of any employee, director or consultant of the Company, the Purchased Companies or any of their Subsidiaries, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company Company, the Purchased Companies or any of their Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employmentemployment (other than to the extent providing for “at-will” employment and without severance), deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Company, the Purchased Companies or any of their Subsidiaries is a party; party or (E) pay involving a director, officer or make any dividend or distribution of cash or other property with respect to the units or other equity interests employee of the Company, the Purchased Companies or any of their Subsidiaries in his or her capacity as a director, officer or employee of the Company, the Purchased Companies or any of their Subsidiaries; provided, however, that notwithstanding the foregoing, the Company may amend the Company Stock Plans to accelerate the vesting of options issued under the Company Stock Plans in connection with the Transaction;
(iivi) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness for trade payables incurred in the Ordinary Course of Business since and amounts outstanding under existing credit facilities as of the Balance Sheet Datedate of this Agreement, borrow monies for any reason or draw down on any line of credit or debt obligation, or become the guarantor, surety, endorser or otherwise liable for any debt, obligation or liability (zcontingent or otherwise) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person; provided that the Purchased Companies and their Subsidiaries may borrow or draw down under existing credit facilities so long as the aggregate principal amount outstanding thereunder as of the Effective Time does not exceed the amount outstanding thereunder as of the date of this Agreement;
(iiivii) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedExceptions and leases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the properties or assets (whether tangible or intangible) of the Company, the Purchased AssetsCompanies or any of their Subsidiaries;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the material properties or assets of the Company, the Purchased Assets (Companies and their Subsidiaries except for fair consideration sales of products to customers in the Ordinary Course of Business; provided, however, that the Company may sell, transfer or convey its shares of capital stock of Metron Technology (Hong Kong) Limited, Metron Technology (Far East) Limited or Metron Technology (Nordic) AB to one or more Purchased Companies or Subsidiaries selected in consultation with the Purchaser (it being understood that, effective upon such sale, assignment, transfer or conveyance, the entity whose shares have been sold, assigned, transferred or conveyed shall be deemed, for purposes of the this Agreement, to be a “Subsidiary” and not a “Purchased Company;”).
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(viix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Company, the Purchased Companies or any of their Subsidiaries except pursuant to existing Contracts listed in the Ordinary Course of BusinessSchedule 6.2(b)(ix);
(viix) enter into any commitment for capital expenditures of the Company, the Purchased Companies and their Subsidiaries in excess of $25,000 for any individual commitment and $250,000 per quarter for all commitments in the aggregate;
(xi) enter into, modify or terminate any labor or collective bargaining agreement of the Company, the Purchased Companies or any of their Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company, the Purchased Companies or any Employeeof their Subsidiaries;
(viiixii) introduce any material change with respect to the operation of the BusinessCompany, the Purchased Companies or any of their Subsidiaries, including any material change in the types, nature, composition or quality of its products or services, take any action to cause any material change in any contribution of its product or service lines to its revenues or net income, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxiii) permit the Company, the Purchased Companies or any of their Subsidiaries to enter into any transaction or to make or enter into, modify or renew into any Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of Business;
(xxiv) permit the Company, the Purchased Companies or any of their Subsidiaries to enter into or agree to enter into any merger or consolidation with, any corporation or other entity, or engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(xv) enter into any ContractContract or transaction between the Company on one hand and any Purchased Company or their Subsidiaries on the other hand;
(xvi) (A) make or rescind any election relating to Taxes, understanding settle or compromise any claim, action, suit, litigation, proceeding, arbitration, investigation, audit controversy relating to Taxes or (B) except as required by applicable law or GAAP, make any change to any of its Tax or reporting or accounting practices, methods or policies;
(xvii) enter into any contract or agreement or commitment that which restrains, restricts, limits or impedes the ability of the BusinessCompany, the Purchased Companies or the ability any of Newco or Purchaser, their Subsidiaries to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsarea;
(xixviii) terminatechange its fiscal year, amendrevalue any of its assets or except as required under GAAP or applicable Law, restatemake any changes in financial accounting methods, supplement principles or waive practices except as required by GAAP or by a Governmental Body and as concurred to by the Company’s independent public accountants;
(xix) commence or settle any rights under Legal Proceeding;
(xx) enter into any (A) Contract that if in effect as of the date hereof would be a Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability Contracts of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts type set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementSchedule 6.2(b)(xx); or
(xviixxi) agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could reasonably be expected to result in any of the conditions to the Closing condition set forth in Section 7.2(a) not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companysatisfied.
Appears in 1 contract
Samples: Stock and Asset Purchase Agreement (Segal Edward D)
Conduct of the Business Pending the Closing. (a) Except as set forth in Schedule 5.2 of the Disclosure Schedule, as required by applicable Law, as otherwise expressly provided contemplated by this Agreement Agreement, or with the prior written consent of NewcoPurchaser, between the date hereof and the ClosingClosing Date, Seller shall and shall cause the Company and HRM to:
(a) conduct the EMS Business and the Business Office Business (including, without limitation, collecting accounts receivable and paying accounts payable) only in the ordinary course consistent with past practice;
(b) not repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company shall:
(i) conduct or HRM; not transfer, issue, sell or dispose of any shares of capital stock or other securities of the Business only in Company or HRM or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the Ordinary Course of BusinessCompany’s or HRM’s capital stock or other securities;
(iic) not effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company or HRM;
(d) not amend the Certificate of Incorporation or the By-Laws, or the certificate of incorporation or by-laws of HRM;
(e) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the EMS Business and the Business Office Business of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)HRM;
(iiif) maintain (A) all of not, other with respect to the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Reimbursement Business, (Bi) continue materially increase the compensation payable or to collect accounts receivable and pay accounts become payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of by the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)or HRM to any of their respective directors, including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonmentofficers, loss employees, agents or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Businessrepresentatives, (Bii) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan plan, payment or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify HRM or amend or terminate any such plan or arrangement (Diii) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or HRM is a party; party or (E) pay involving a director, officer or make any dividend or distribution of cash or other property with respect to the units or other equity interests employee of the CompanyCompany or HRM in his or her capacity as a director, officer or employee of the Company or HRM;
(iig) (A) except for trade payables and obligations or liabilities to be assumed by Seller pursuant to Section 5.9, not create, incur, assumeacquire, guarantee, endorse guarantee or otherwise assume or become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions subject to, or investments inagree to incur or become subject to, any debt or other Personobligation for borrowed money on behalf of the Company or HRM;
(iiih) not subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to Liens that do not impair in any Lien or otherwise encumberedmaterial respect the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets of the EMS Business or the Business Office Business (whether tangible or intangible);
(ivi) not acquire any material properties or assets or and not sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) material properties or assets of the CompanyEMS Business or the Business Office Business;
(vj) not cancel or compromise any debt or claim or waive or release any material right of the Company or HRM except for in the ordinary course of business consistent with past practice;
(k) not enter into any commitment for capital expenditures related to the EMS Business or the Business Office Business or to Accordis as provided a legal obligor;
(l) not enter into, modify or terminate any labor or collective bargaining agreement of the Company or HRM or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization with respect to the Company or HRM;
(m) not declare or pay any dividend or make any other distribution to its shareholders whether or not upon or in respect of any shares of its capital stock; provided, however that Purchaser acknowledges that on or prior to the Closing Date, Seller will withdraw any cash balances of the Company and HRM pursuant to Section 6.6 hereof5.8(b);
(n) not enter into any lease of real property, except any renewals of existing leases in the ordinary course of business;
(o) not permit the Company or HRM to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Personother entity;
(vip) cancel to the extent it may affect or compromise any debt or claim, or waive or release any material right of relate to the Company except in the Ordinary Course or HRM, not make or change any Tax election, change any annual Tax accounting period, adopt or change any method of Business;
(vii) enter intoTax accounting, modify or terminate file any labor or collective bargaining agreement oramended Tax Return, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction closing agreement, settle any Tax claim or enter intoassessment, modify surrender any right to claim a Tax refund, offset or renew other reduction in Tax liability or consent to any Contract which by reason of its size extension or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability waiver of the Business, or the ability of Newco or Purchaser, limitations period applicable to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any Tax claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementassessment; or
(xviiq) agree agree, whether in writing or otherwise, to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyforegoing.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) From and after the date hereof until the Closing or the earlier termination of this Agreement in accordance with its terms, but subject to 0, Sellers shall, except with the consent of Buyer or as otherwise required or restricted by Law, pursuant to the Bankruptcy Code or an order of the Bankruptcy Court, (x) operate the Business in the Ordinary Course of Business and (y) without limiting the generality of the foregoing:
(i) use commercially reasonable efforts to keep available the services of its officers and Covered Employees;
(ii) except as related to or the result of the filing or pendency of the Bankruptcy Cases, use commercially reasonable efforts to maintain reasonably satisfactory relationships with licensors, licensees, suppliers, contractors, distributors, consultants, vendors and other Persons having business relationships with the Business (other than payment of pre-petition claims);
(iii) operate the Business and Acquired Assets, in all material respects, in compliance with all Laws applicable to the Business and Sellers. For avoidance of doubt, except as otherwise set forth in Section 2.3(c), all inventory and Merchandise designated for sale on the E-Commerce Platform shall not be offered for sale in any Store, and any inventory and Merchandise designated for sale in a Store shall not be offered for sale on the E-Commerce Platform;
(iv) place orders for Merchandise in a commercially reasonable manner that is consistent with the Buying Plan;
(v) without any obligation to purchase in any quantity of Merchandise for the E-Commerce Business that is not consistent with the Buying Plan, use commercially reasonable efforts to receive Merchandise ordered in accordance with purchase orders;
(vi) upon the written request and at the sole cost and expense of Buyer, arrange for aircraft shipment of any Merchandise agreed to by Sellers in its reasonable discretion that is subject to an E-Commerce Order (“Aircraft Shipping Charges”); provided, however,, that Buyer shall reimburse (or at the request of Sellers directly pay) all costs and expenses associated with such aircraft shipment, including without limitation, all airplane, fuel and freight costs and associated permits, tariffs and taxes. Buyer acknowledges and agrees that any amounts paid in connection with this Section 5.2(a)(vi) shall be in addition to the Purchase Price; further provided, however, that in the event of an Alternative Transaction, Buyer will have no obligation for payment of Aircraft Shipping Charges, and Sellers shall refund, as an Administrative Expense Claim, Buyer for any reimbursements Buyer paid to Sellers on account of Aircraft Shipping Charges ; and
(vii) use commercially reasonable efforts to identify and remove all Allegedly Infringing Merchandise and Violative Merchandise from the Stores, the Distribution Center and E-Commerce Business.
(b) Except (i) in the Ordinary Course of Business, (ii) as required by applicable Law or by order of the Bankruptcy Court, (iii) as otherwise expressly provided required by this Agreement Agreement, (iv) in accordance with the Buying Plan, or (v) with the prior written consent of NewcoBuyer, between the date hereof and the Closing, the Company shallSellers shall not:
(i) conduct subject any of the Acquired Assets to any Lien, except for permitted post-petition liens and any Lien secured and granted pursuant to any debtor in possession financing order;
(ii) terminate, permit to expire, amend or fail to renew, obtain or preserve any Permit material to the operation of the E-Commerce Business only and the Acquired Assets as a whole;
(iii) make any loans or advances outside of the Ordinary Course of Business;
(iv) enter into any Contract or Lease, including purchase orders, other than Contracts (but not Leases) with a value that do not exceed $250,000 individually or $500,000 in the aggregate;
(v) incur, create, assume, guarantee or become liable for any indebtedness for borrowed money;
(vi) modify, amend, supplement, transfer, or terminate any Contract or Lease, other than Contracts (but not Leases) which are not material to the E-Commerce Business or the Acquired Assets;
(vii) fail to maintain in full force and effect any filings necessary to maintain the material Owned Intellectual Property;
(viii) write up, write down or write off the book value of any assets other than in the Ordinary Course of Business;
(iiix) use its commercially reasonable efforts to (Areject any Contracts or Leases other than as set forth on Section 5.2(b)(ix) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)Disclosure Schedule;
(iiix) maintain (A) all of the assets and properties of, or used by, the Company consistent make any new commitment with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable respect to that in effect on the date of this Agreementmaterial capital expenditures;
(ivxi) (Aa) maintain increase the books, accounts and records rate or terms of compensation payable or to become payable to any of the Company officers or employees of the Sellers or (b) increase the rate or terms of any (including entering or adopting any new) bonus, pension or other employee benefit plan covering any of the officers or employees of Sellers;
(xii) waive any of the rights of the Sellers under any confidentiality or non-compete provisions of any Contract;
(xiii) seek to accelerate the receipt of any royalty payments or licensing or other receivables generated by the Sellers, by way of discount or otherwise;
(xiv) other than acquisitions and dispositions of Merchandise in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course acquire, dispose of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire transfer any material properties asset, property or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreementintellectual property right;
(xv) amend pay, settle or compromise any material Litigation or threatened Litigation involving the operating agreement of the CompanySellers, or commence any Litigation;
(xvi) agree change accounting policies or procedures, except as required by a change in GAAP;
(xvii) invalidate or cause the cancellation of any current insurance coverage (without replacement thereof) or fail to materially increase Liabilities from maintain current insurance coverage or suitable renewals thereof providing coverage substantially the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up same as any expiring policy;
(xviii) fail to file any Tax Return when due with respect to the maximum amounts and other terms as in effect on Acquired Assets or the date of this AgreementBusiness; or
(xviixix) agree agree, whether in writing or otherwise, to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company5.2.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 7.2(a), (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement in connection with, or in furtherance of, the consummation of the transactions contemplated hereby (including any repayment and termination of the Credit Facilities), or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the each Company shall:
(iA) use commercially reasonable efforts to conduct the Business respective businesses of the Latisys Companies only in the Ordinary Course of Business;; and
(iiB) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Latisys Companies.
(b) Prior to the Closing, except (i) as set forth on Schedule 7.2(b), (ii) as required by applicable Law, (iii) as otherwise contemplated by this Agreement in connection with, or in furtherance of, the consummation of the transactions contemplated hereby (including any repayment or termination of the Credit Facilities), or (iv) with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, delayed or conditioned), no Company and shall:
(A) transfer, pledge, encumber, issue, sell or dispose of any shares of capital stock or other securities of any Latisys Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of any Latisys Company;
(B) preserve effect any recapitalization, reclassification or like change in the present relationships with Persons having business dealings with the Company (including customers and suppliers)capitalization of any Latisys Company;
(iiiC) maintain (A) all amend the certificate of the assets and properties of, incorporation or used by, the Company consistent with past practice, and (B) insurance upon all -laws or similar governance documents of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementany Latisys Company;
(ivD) (A) maintain the booksmortgage, accounts and records pledge or knowingly subject to any Lien, any of the Company Real Property or Assets (whether tangible or intangible) of any Latisys Company, except for Permitted Liens and Liens under the Credit Facilities that will be released at or in connection with the Closing;
(E) other than in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
matters addressed in subsection (iiG) (A) createbelow, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets Real Property or assets of any Latisys Company (except for fair consideration the purpose of disposing of obsolete or worthless assets or to the extent such assets are replaced with like assets of equivalent value);
(F) other than in the Ordinary Course of Business) , pay, discharge, cancel, settle or compromise any material debt or claim or waive or release any material right of the any Latisys Company;
(vG) except enter into any commitment for capital expenditures of any Latisys Company in excess of $1,000,000 for any individual project, other than (i) as provided in Section 6.6 hereofcontemplated by the Latisys Companies’ current budget or (ii) related to Contracts with customers;
(H) enter into, modify or terminate any labor or collective bargaining agreement of any Latisys Company or, through negotiations or otherwise, make any commitment or incur any liability to any labor organizations;
(I) cause or allow any Latisys Company to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution toother entity, or otherwise acquire the securities of any other Person, or enter into any joint venture;
(viJ) cancel excluding any Company Closing Bonuses, increase the compensation of any employee of a Latisys Company, make any material change in employee benefits or compromise other compensation arrangements affecting any debt or claimemployee of a Latisys Company, or waive institute any new (or release modify any material right existing) severance or termination pay practices affecting any director, officer or employee of a Latisys Company, provided that the foregoing restrictions shall not apply to performance bonuses relating to the 2014 calendar year, to the extent accrued in the Closing Working Capital and provided further that the foregoing restrictions shall only apply between the date of this Agreement and the thirtieth (30th) day after the date of this Agreement, it being understood and agreed that if the Closing has not occurred as of such thirtieth (30th) day, the Latisys Companies shall thereafter be entitled to take any of the Company except foregoing actions in the Ordinary Course of BusinessBusiness without the Purchaser’s consent;
(viiK) enter intoexcept as required by GAAP or by applicable Law, modify change any of the material accounting principles or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization practices used by the Latisys Companies;
(1) except with respect to any Employee;
(viii) introduce any material change Material Contracts with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than customers in the Ordinary Course of Business, make enter into or amend any change in product specifications Material Contract or prices (2) terminate, breach, or terms of distributions of such productswaive any material right under, any Material Contract;
(ixM) enter into make any transaction settlement of or enter intocompromise any material Tax liability, modify file any amendment to any Tax Return, change in any material respect any Tax election or renew Tax method of accounting or make any Contract which by reason new Tax election or adopt any new Tax method of its size accounting, or otherwise is not consent to any extension or waiver of the limitation period applicable to any claim or assessment in the Ordinary Course respect of BusinessTaxes;
(xN) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business borrowings under the Credit Facilities, incur or (B) Permitassume any Indebtedness for borrowed money, assume, guarantee, endorse or otherwise become liable or responsible for the obligations of any other Person or make any loans, advances or capital contributions to, or investments in, any Person, including among the Latisys Companies;
(xiiO) settle declare, set aside, make or compromise pay any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables dividend or other liabilities;
distribution, payable in assets or other securities, property or otherwise, with respect to any equity interests of any Latisys Company; or (xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviiP) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (1) as set forth on Schedule 9.2(a), (2) as required by applicable Law (including any binding Bankruptcy Court Order), (3) as otherwise expressly provided required by this Agreement or (4) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between conditioned or delayed), Sellers shall and shall cause the date hereof and the Closing, the Company shallTransferred Entities to:
(i) conduct the Business only in the Ordinary Course of Business;; and
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business, and (B) preserve the present relationships with Persons having business dealings customers and suppliers of the Business.
(b) Except (1) as set forth on Schedule 9.2(b), (2) as required by applicable Law (including any binding Bankruptcy Court Order), (3) as otherwise expressly required by this Agreement or (4) with the Company prior written consent of Purchaser (including customers which consent shall not be unreasonably withheld, conditioned or delayed), Sellers shall not and suppliers);shall not permit any Transferred Entity to, solely as it relates to the Business:
(iiii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company other than in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) materially increase the salary or other annual level of compensation of any director or Employee executive officer of the Company except for normal year-end increases in the Ordinary Course of Businessany Seller, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director or directorexecutive officer, (C) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Employee Benefit Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) with a director or executive officer of any Seller, except, in each case, as required by applicable Law from time to which the Company is a party; time in effect or (E) pay or make by any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyEmployee Benefit Plans;
(ii) (A) createmake or rescind any material election relating to Taxes, incursettle or compromise any claim, assumeaction, guaranteesuit, endorse litigation, proceeding, arbitration, investigation, audit or otherwise become liable controversy relating to Taxes, or responsible with respect except as may be required by applicable Law or GAAP, make any material change to (whether directly, contingently any of its methods of accounting or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course preparation of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personits most recent Tax Returns;
(iii) subject any of the Purchased Assets to any Lien or otherwise encumber orLien, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets that would be Purchased Assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the material Purchased Assets (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) Business or for the purpose of the Companydisposing of obsolete or worthless assets);
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger Contract that if entered into prior to the date hereof would be a Material Contract or consolidation with amend or modify any Person, and not engage Material Contract in any new business a manner adverse to the Business or invest in, make a loan, advance or capital contribution tothe Purchaser, or otherwise acquire extend the securities term of any PersonMaterial Contract;
(vi) (x) accelerate or delay collection of any notes or accounts receivable generated by the Business in advance of or beyond their regular due dates or the dates they would have been collected in the Ordinary Course of Business, (y) delay or accelerate payment of any account payable or other liability of the Business beyond or in advance of its due date or the date when such liability would have been paid in the Ordinary Course of Business or (z) otherwise alter their practices relating to current assets or current liabilities or other items that could affect Excess Cash;
(vii) incur, assume or guarantee any Indebtedness or amend, modify or change the terms of any Indebtedness;
(viii) cancel or compromise any material debt or claim, claim or waive or release any material right of the Company any Seller that constitutes a Purchased Asset except in the Ordinary Course of Business;
(viiix) make any capital expenditures that in the aggregate with all other capital expenses incurred from and after April 1, 2010, are in excess of $26 million;
(x) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementorganization; or
(xviixi) agree to do anything (A) prohibited by this Section 6.29.2.
(c) Without the prior written consent of the Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), none of the Sellers shall (or authorize or permit any Affiliate or Opco Joint Venture, or any other Person with respect to which any Seller has the right or ability, directly or indirectly, by contract or otherwise, to control or prevent such action, to) enter into any Contract that contains, or amend, change, supplement or otherwise modify (including through any conditional waiver) any existing Contract to include, any provision or term (i) prohibiting, or requiring the consent of any Person in connection with, the assignment to any Purchasing Entity of any Contract to which any Seller is a party or the sale or transfer of any Assets and Properties of any Seller to any Purchasing Entity or (ii) providing for any one or more of the following relating to any Person’s Ownership or Management or any change therein: (A) any acceleration of any right or benefit of any party to any Contract or of any of its Affiliates (other than of any Seller), (B) that would make any loss of any benefit or right of any party to any Contract or of any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or their respective Affiliates, (C) any right of termination, cancellation or modification for any party to any Contract or for any of its Affiliates (other than for any Seller) or (D) any other right or event that could be reasonably expected to have a Material Adverse Effect adversely affects Purchaser or the Mortgage Lenders. The parties understand and agree that Purchaser has provided its written consent with respect to the Companydocuments attached hereto as Schedule 9.2(c), but not to any changes, supplements or other modifications thereto.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement and the schedules attached hereto or with the prior written consent of Newcothe Purchaser (which consent shall not be unreasonably withheld, between delayed or conditioned), during the period from the date hereof to and through the ClosingClosing Date, the Seller shall preserve in all material respects its business operations, organization and goodwill and shall use commercially reasonable efforts, subject to compliance with any contractual obligations, to cause the Project Company shall:
to: (i) conduct the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply in material compliance with all Applicable Laws, Approvals and contractual obligations; (ii) operate and other obligations maintain the Facility in accordance with Good Utility Practices; (iii) pay all Liabilities as and when due; (iv) continue in full force and effect the insurance coverage under the policies set forth in Section 5.21 of the Company;
Seller’s Disclosure Schedule; and (v) comply with use commercially reasonable efforts to maintain the capital expenditure plan existing Employees. Further, the Seller will reasonably inform and involve, to the extent practicable provided no privilege is waived, the Purchaser in any defense of the Seller or the Project Company against any audit or investigation by the Federal Energy Regulatory Commission or any other Governmental Authority (except for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in any audit or investigation during the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner period prior to their lapse; and
(viiithe Closing Date relating to U.S. federal income Taxes) pay all maintenance and similar fees and take all other appropriate actions as necessary that specifically relates in any way to prevent the abandonment, loss or impairment of all Intellectual Property of Assets prior to the CompanyClosing Date.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement and the schedules attached hereto or with the prior written consent of Newcothe Purchaser (which consent shall not be unreasonably withheld, delayed or conditioned), during the period from the date hereof to and through the Closing Date, the Seller shall not and shall cause the Project Company shall not:
not to (i) (A) increase the salary make any material modification, amendment or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation extension to any Employee existing Contract or director, enter into any additional Contract with a payment commitment by the Project Company in excess of one hundred thousand U.S. dollars (C) increase the coverage or benefits available under any $100,000); (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (Dii) enter into any employmentcompromise or settlement of litigation, deferred compensation, stay bonus, severance, special pay, consulting, non-competition proceeding or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is investigation by a party; or (E) pay or make any dividend or distribution of cash or other property with respect Governmental Authority relating to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business; (iii) allow the Membership Interest or the Assets to become subject to any Encumbrance other than a Permitted Encumbrance; (iv) issue any additional Membership Interests; (v) merge or consolidate the Project Company with any other Person or allow the Project Company to acquire any assets outside of the Ordinary Course of Business; (vi) sell, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size lease or otherwise is not dispose of any Assets other than in the Ordinary Course of Business;
; (vii) waive any claims or rights of the Project Company in excess of fifty thousand U.S. dollars ($50,000) other than in the Ordinary Course of Business; (viii) incur any indebtedness for borrowed money; (ix) take any affirmative action or fail to take any reasonable action within its control that could result in a Project Company Material Adverse Effect or Seller Material Adverse Effect; (x) make any material changes in the levels of inventory of parts or other supplies or materials included in the Tangible Personal Property; (xi) enter into any Contract, understanding Affiliated Contracts or commitment that restrains, restricts, limits other arrangement with its Affiliates; (xii) make any change in management personnel located at the Facility; (xiii) grant any Employee an increase in compensation or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, benefits other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise if any pending or threatened Legal Proceeding or such increase would be applicable for any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in period after the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
Closing Date; (xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement Tax election, or enter into any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect agreement concerning Taxes, with respect to the CompanyAssets, if such election or agreement would apply to the Project Company or the Assets for any period after the Closing Date; or (xv) agree or commit to do any of the foregoing.
(c) For the avoidance of doubt, the foregoing shall not require the Seller, the Project Company or any of their Affiliates or representatives to make any payments, incur any costs, or enter into or amend any contractual arrangements, agreements or understandings, unless such payment, incurrence or other action is required by any Applicable Law or Approval by any Governmental Entity or by contractual obligation.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, between prior to the date hereof Closing the Sellers shall, and the Closing, shall cause the Company shallto:
(i) conduct Conduct the Business respective businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companylaws.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, prior to the Closing the Sellers shall not, and shall cause the Company shall notnot to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the membership interests of the Company or repurchase, redeem or otherwise acquire any outstanding membership interests or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any membership interests or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire membership interests or other securities of the Company;
(iii) Effect any recapitalization, reclassification, like change in the capitalization of the Company;
(iv) Amend the articles of formation or operating agreement of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, lien (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Samples: Membership Interest Purchase Agreement (WPCS International Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closing, the Company TAA shall:
(i1) conduct the Business its business only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii2) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)it;
(iii3) maintain (A) all of the its assets and properties ofin their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the its properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the its books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the Company;applicable to its operation; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi5) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoPurchaser, the Company TAA shall not:
(i1) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases trade payables and for indebtedness for borrowed money incurred in the Ordinary Course ordinary course of Businessbusiness and consistent with past practice, (B) grant borrow monies for any bonus, benefit reason or other direct draw down on any line of credit or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, fordebt obligation, or with any of become the directorsguarantor, officerssurety, Employees, agents or representatives of the Company endorser or otherwise modify liable for any debt, obligation or amend or terminate any such plan or arrangement liability (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently contingent or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii2) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedliens that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsits properties or assets (whether tangible or intangible);
(iv3) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets its material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Business) of the Companybusiness consistent with past practice);
(v4) cancel or compromise any debt or claim or waive or release any material right except as provided in Section 6.6 hereofthe ordinary course of business consistent with past practice;
(5) enter into any commitment for capital expenditures in excess of $10,000 for any individual commitment and $15,000 for all commitments in the aggregate;
(6) introduce any material change with respect to its operation, including any material change in the types, nature, composition or quality of its products or services, experience any material change in any contribution of its product lines to its revenues or net income, or, other than in the ordinary course of business, make any change in product specifications or prices or terms of distributions of such products;
(7) enter into any transaction or make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(8) enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi9) cancel or compromise any debt or claim, or waive or release any material right except for transfers of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwisecash pursuant to normal cash management practices, make any commitment investments in or incur loans to, or pay any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Businessfees or expenses to, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into with any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementAffiliate; or
(xvii10) agree to do anything (A) prohibited by this Section 6.2, (B) that 5.3 or anything which would make any of the representations and warranties of the Company TAA in this Agreement or any of the Company Transaction Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Samples: Membership Interest Purchase Agreement (Sub-Urban Brands, Inc.)
Conduct of the Business Pending the Closing. (a) Except (1) as otherwise expressly provided set forth on Schedule 8.2(a), (2) as required by this Agreement applicable Law, or (3) with the prior written consent of NewcoPurchaser in its sole and absolute discretion, between during the period from the date hereof of this Agreement to and through the ClosingClosing Date, the Company Sellers shall:
(i) conduct the Business only in the Ordinary Course of Business, including, without limitation, with respect to (a) the pricing and terms of sale of inventory, (b) the timing, discounting and other practices in connection with the collection of accounts receivable, (c) the timing and other practices for payment of account payables and (d) compensation, bonuses, benefits and severance payable to Employees, subject to and in accordance with the further limitations set forth in Section 9.1(a);
(ii) use its their commercially reasonable efforts to (Aa) keep their assets intact and maintain their assets in at least as good a condition as their current condition (reasonable wear and tear excepted), (b) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business, and (Bc) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)suppliers of the Business;
(iii) maintain perform in all material respects its obligations arising after the Petition Date under any Contract (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementincluding Real Property Leases);
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws that relate to or affect its assets and business or such Person's ownership and/or use or operation thereof, including the timely, complete and correct filing of all reports and maintenance of all records required by any Governmental Authority to be filed or maintained;
(v) continue to use and operate all assets and all aspects of its business used or operated by the Sellers as of the date hereof in a manner consistent with prior practice and in accordance in all material respects with all applicable Laws, and not enter into any contract nor otherwise act, nor suffer or permit any other Person to act, to restrict, interfere with or prevent the use or operation of such assets or business;
(vi) promptly notify Purchaser in writing of any incidents or accidents occurring on or after the date hereof involving any assets or property owned or operated by the Sellers that resulted or could reasonably be expected to result in damages or losses to any portion of the business of the Sellers or damages in excess of $100,000;
(vii) take steps promptly notify Purchaser in writing of the existence of any adverse business conditions arising on or after the date hereof threatening the continued, normal business operations of the Sellers or of any agreement, consent or order of any Governmental Authority involving any of the Sellers;
(viii) promptly notify Purchaser of any Legal Proceeding of the type described in Section 5.12 commenced after the date hereof and/or, to renew all Permits the Knowledge of Sellers, threatened after the date hereof against the Sellers;
(ix) provide prompt written notice to Purchaser (i) of any change in a timely manner prior any of the information contained in the representations and warranties made by the Sellers in Article V hereof or any exhibits or schedules referred to their lapseherein or attached hereto, including any Schedules and shall promptly furnish any information that Purchaser may reasonably request in relation to such change; provided, however, that such notice shall not operate to cure any breach of the representations and warranties made by the Company herein or any exhibits or schedules referred to herein or attached hereto, including any Schedules; and
(viiix) pay all maintenance and similar fees and take all other appropriate actions as necessary provide prompt written notice to prevent the abandonment, loss or impairment of all Intellectual Property Purchaser of the Company.occurrence of any event that results in or would reasonably be expected to result in a failure to satisfy any of the conditions set forth in Article X.
(b) Without limiting the generality of the foregoingExcept (1) as set forth on Schedule 8.2(b), except (2) as otherwise expressly provided required by this Agreement applicable Law, or (3) with the prior written consent of NewcoPurchaser in its sole and absolute discretion, during the Company period from the date of this Agreement to and through the Closing Date, Sellers shall not:
(i) (A) increase the salary take any action as a result of which any representation or other compensation of any director or Employee warranty of the Company except for normal year-end increases Sellers made in Article V would be rendered untrue or incorrect if such representation or warranty were made immediately following the Ordinary Course of Business, (B) grant any bonus, benefit taking or other direct or indirect compensation failure to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any take such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyaction;
(ii) (A) createmake or rescind any material election relating to Taxes, incursettle or compromise any material claim, assumeaction, guaranteesuit, endorse litigation, proceeding, arbitration, investigation, audit or otherwise become liable controversy relating to Taxes, or responsible with respect except as may be required by applicable Law or GAAP, make any material change to (whether directly, contingently any of its methods of accounting or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course preparation of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personits most recent Tax Returns;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased AssetsAssets to any Lien, except for Liens existing as of the date hereof;
(iv) acquire any material properties or assets other than in the Ordinary Course of Business, or enter into any partnership, joint venture or similar arrangement (including, but not limited to, the contemplated joint venture with a Pakistani company for the formation and operation of a manufacturing facility near Lahore, Pakistan), or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets Seller's assets other than inventory in the Ordinary Course of Business and obsolete or worthless equipment permitted to be sold pursuant to the DIP Credit Agreement;
(except v) cancel, compromise or settle any debt or claim or waive or release any right in excess of $20,000 individually and $250,000 in the aggregate or, in connection with Trade Payables, accounts payable to employees for fair consideration travel and entertainment expense, workers' compensation payments, or trade receivables, other than in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise enter into any debt or claim, or waive or release any material right commitment for capital expenditures in excess of the Company except $250,000 for all commitments in the Ordinary Course of Businessaggregate except for capital expenditure projects described by project and amount as line items as set forth on Schedule 8.2(b) hereof not to exceed the amount for each such category as described and set forth in such schedule;
(vii) enter into, modify or terminate any labor or collective bargaining agreement Collective Bargaining Agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employeeorganization;
(viii) introduce incur any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, Indebtedness other than in the Ordinary Course of its Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into assign, modify, cancel, otherwise impair or permit to lapse any transaction Material Contract (other than expiration in accordance with the terms thereof as a result of the passage of time and other than Real Property Leases as to which Section 8.2(b)(x) applies ) involving annual expenditures, purchases or enter intorevenues in excess of $100,000 annually;
(x) assign, modify sublease, amend in any material respect, terminate, exercise (or renew waive) or permit to lapse any Contract which by reason options to renew, options to expand or options to purchase pursuant to any Real Property Leases involving expenditures in excess of its size or otherwise is not $100,000 annually (other than expiration in accordance with the terms thereof as a result of the passage of time);
(xi) make any payments (a) in respect of professional fees for attorneys and accountants except to the extent and on the timing permitted under existing interim compensation and fee application procedures (other than professional fees payable to ordinary course professionals to the extent authorized to be paid under the existing Order of the Bankruptcy Court signed on 6/3/03 Authorizing Retention and Compensation of Professionals Utilized in the Ordinary Course of Business;
), (xb) enter into any Contractunder, understanding in respect of or commitment that restrains, restricts, limits or impedes pursuant to the ability KERP Program (other than the existing scheduled payment for the second quarter of 2005 pursuant to the BusinessKERP Order), or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment fees and expenses of any persons;
financial advisor of Sellers (xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than monthly fees in the Ordinary Course of Business currently approved amounts pursuant to existing procedures) or (Bc) Permit;
(xii) settle in respect of fees and expenses of any broker or compromise any pending finder of Sellers except as consented to by Purchaser and except for such fees and expenses of a broker or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up finder relating to the maximum amounts and other terms as in effect on sale of real property by Sellers which are approved by the date of this AgreementBankruptcy Court prior to June 30, 2005; or
(xviixii) agree to do anything (A) prohibited by this Section 6.2, 8.2.
(Bc) that would make any During the period from the date of the representations and warranties of the Company in this Agreement to and through the Closing Date, Sellers shall not declare, authorize, make or enter into a commitment to make (x) any dividend, distribution or other payment in respect of any Seller's capital stock or other equity or rights to acquire the Company Documents untrue same or incorrect engage in any material respect similar payment or could result in any of the conditions to the Closing not being satisfied distribution or (Cy) that could be reasonably expected to have a Material Adverse Effect any payment, prepayment or distribution with respect to any Indebtedness of the CompanySellers other than payments in respect of the DIP Credit Agreement as required or permitted pursuant to the terms of the DIP Credit Agreement or payment pursuant to the Adequate Protection Order.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement or with the prior written consent of Newcothe Owners, between the date hereof and the Closing, the Company shall, and the Company shall cause the Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employeesemployees) and goodwill of the Company and the Subsidiaries and (B) preserve the present relationships with Persons having business dealings with the Company and the Subsidiaries (including customers and suppliers);
(iii) maintain (A) all of the material assets and properties of, or used by, the Company consistent with past practiceand the Subsidiaries in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company and the Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company and the Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet utilizing normal procedures in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditBusiness, and (C) comply with all contractual and other obligations of the CompanyCompany and the Subsidiaries;
(v) comply with the capital expenditure plan of the Company and the Subsidiaries for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)2007, including making such capital expenditures in the amounts and at the times set forth in such plan;; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by in this Agreement or with the prior written consent of Newcothe Owners, the Company shall not, and the Company shall cause the Subsidiaries not to:
(i) except as set forth on Schedule 7.2(b)(i), declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of, or other ownership interests in, the Company or any of the Subsidiaries or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries, other than regular quarterly dividend payments in respect of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of the Company or any of the Subsidiaries, or amend the terms of any outstanding securities of the Company or any Subsidiary;
(iv) amend the certificate of incorporation or by-laws or equivalent organizational or governing documents of the Company or any of the Subsidiaries;
(v) with respect to its directors, officers, employees and consultants (A) increase the salary or other compensation of any director or Employee of the Company except consultant or, other than for normal year-end periodic increases in the Ordinary Course of BusinessBusiness increase the salary or compensation of any officer or other employee, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director, officer, employee or directorconsultant, (C) other than changes required by Law, amend or enter into any employment, consulting, deferred compensation, bonus or other incentive compensation, change in control, retention, severance, termination or similar agreement, (D) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurancechange in control, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonusretention, severance, special paytermination, consultingvacation, non-competition salary continuation, insurance, retirement plan, payment or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; arrangement, or (E) pay or make forgive any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyloan indebtedness or, except as required by any Company Plan, grant any loan;
(iivi) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any material Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5other than Transaction Indebtedness; (Bii) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued of the Company or guaranteed by any of the CompanySubsidiaries; or (Ciii) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsmaterial properties or assets (whether tangible or intangible) of, or used by, the Company or any of the Subsidiaries;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of, or used by, the Company and the Subsidiaries, other than in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not or engage in any new line of business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;
(vix) cancel or compromise any material debt or claim, claim or waive or release any material right of the Company or any of the Subsidiaries except in the Ordinary Course of Business;
(viixi) enter into any new commitment for capital expenditures of the Company and the Subsidiaries in excess of $50,000 for any individual commitment and $500,000 for all commitments in the aggregate;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of the Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company or any Employeeof the Subsidiaries;
(viiixiii) introduce any material change with respect to the operation of the BusinessCompany or any of the Subsidiaries, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any material change in product specifications or prices or terms of distributions of such productsproducts or change its pricing, discount, allowance or return policies or grant any pricing, discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ixxiv) enter into any transaction or enter into, modify or renew any Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of Business;
(xxv) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, and except for agreements in effect on the date hereof, make any investments in or loans to, or pay any fees or expenses to, or enter into or modify any Contract with any Related Persons;
(xvi) make, change or revoke any accounting or Tax election, reporting principles, methods or policies, settle or compromise any Tax claim or liability or enter into a settlement or compromise, or change (or make a request to any Taxing Authority to change) its method of accounting for Tax purposes;
(xvii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, Company or the ability of Newco or Purchaser, any Subsidiary to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixviii) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) material Permit;
(xiixix) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or other than in the aggregate, reasonably be expected to be greater than $50,000Ordinary Course of Business;
(xiiixx) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxi) agree to do anything (A) prohibited by this Section 6.27.2, (B) that which would make any of the representations and warranties of the Company Signing Stockholders in this Agreement or any of the Signing Stockholder Documents or Company Documents untrue or incorrect in any material respect or could result in would cause any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect Effect;
(xxii) fail to pay any required maintenance or other similar fees or otherwise fail to make required filings or payments required to maintain and further prosecute any applications for registration of Intellectual Property;
(xxiii) other than as may be required as a result of a change in applicable Law, regulation or GAAP, change any of the Insurance Companies’ reserving methods (it being understood that the foregoing should not apply to changes in the amount of reserves);
(xxiv) abandon, modify, waive, terminate or otherwise change any insurance licenses of the Insurance Companies, except (A) as may be required in order to comply with respect applicable Law or (B) such modifications or waivers of insurance licenses as would not, individually or in the aggregate, restrict the business or operations of such Insurance Company in any material respect;
(xxv) take any action that would reasonably be expected to result in a reduction of any financial ratings of the Company or any of its Subsidiaries, including the insurer financial strength ratings of the Insurance Companies;
(xxvi) make any material change in its underwriting, claims management, pricing, reserving or reinsurance practices;
(xxvii) materially reduce the amount of insurance covering the business of the Company and its Subsidiaries provided by existing insurance policies;
(xxviii) make any material modifications to any form of insurance contract other than in the Ordinary Course of Business; and
(xxix) except for the payments contemplated by the Agreement, make any other payments, or obligate itself to make any payments, to any Signing Stockholder or their Affiliates or family members and make any payments, or obligate itself to make any payments, to the Company.Agency
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct Conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) grant any bonus, benefit increase the annual level of compensation payable or other direct or indirect compensation to become payable by the Company to any Employee or directorof its executive officers, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution her capacity as a director, officer or employee of the Company. The Sellers through the Company shall have the ability to direct the payment of cash and accounts receivable to any Employee both prior to and after Closing.
(vi) Except for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, borrow monies for any reason or draw down on any line of credit or debt obligation, or become the guarantor, surety, endorser or otherwise liable for any debt, obligation or liability (contingent or otherwise) of any other Person, or change the terms of payables or receivables;
(vii) Subject to any Lien (except for leases that do not materially impair the use of the property with respect to subject thereto in their respective businesses as presently conducted), any of the units properties or other equity interests assets (whether tangible or intangible) of the Company;
(iiviii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures or the purchase of assets out of the ordinary course in excess of $5,000;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection the Sellers or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the Sellers; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Samples: Stock Purchase Agreement (National Investment Managers Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Seller, between prior to the date hereof and Closing the Closing, the Company Purchaser shall:
(i) conduct Conduct the Business businesses of the Purchaser only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company Purchaser and (B) preserve the its present relationships relationship with Persons parties having business dealings with the Company (including customers and suppliers)Purchaser;
(iii) maintain Maintain (A) all of the assets and properties ofof the Purchaser in their current condition, or used by, ordinary wear and tear excepted and except for dispositions in the Company consistent with past practice, ordinary course of business and (B) insurance upon all of the properties and assets and properties of the Company Purchaser in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Purchaser in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;Purchaser; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companylaws.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, prior to the Company Closing the Seller shall not, and shall cause the Purchaser not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Purchaser or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Purchaser;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Purchaser or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Purchaser;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Purchaser;
(iv) Amend the Articles of Incorporation or Bylaws of the Purchaser;
(v) (A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessPurchaser, (B) increase the annual level of compensation payable or to become payable by the Purchaser to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company Purchaser awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company Purchaser or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Purchaser is a party; party or (E) pay involving a director, officer or make any dividend or distribution of cash or other property with respect to the units or other equity interests employee of the CompanyPurchaser in his or her capacity as a director, officer or employee of the Purchaser;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother party, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, lien (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Purchaser;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyPurchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Purchaser except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Purchaser to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Purchaser to enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, to or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000party;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Purchaser to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Documents other agreement referenced herein untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyClosing.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (I) as required by applicable Law, (II) as otherwise expressly provided contemplated by this Agreement or (III) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the Company shall, and shall cause the Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and the Subsidiaries, and (B) preserve the present relationships with Persons having business dealings with customers and suppliers of the Company (including customers and suppliers)the Subsidiaries;
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceand the Subsidiaries in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company and the Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company and the Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the CompanyCompany and the Subsidiaries;
(v) comply with the capital expenditure plan of the Company and the Subsidiaries for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)2007, including making such capital expenditures in the amounts and at the times set forth in such plan;; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoingExcept (I) as required by applicable Law, except (II) as otherwise expressly provided contemplated by this Agreement or (III) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, delayed or conditioned), the Company shall not, and shall not permit the Subsidiaries to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company or any of the Subsidiaries;
(iii) effect any recapitalization, reclassification or like change in the capitalization of the Company or any of the Subsidiaries;
(iv) amend the certificate of incorporation or by-laws or comparable organizational documents of the Company or any of the Subsidiaries;
(v) other than in the Ordinary Course of Business or as required by Law or Contract, (A) materially increase the salary or other annual level of compensation of any director or Employee executive officer of the Company except for normal year-end increases in or any of the Ordinary Course of BusinessSubsidiaries, (B) materially increase the annual level of compensation payable or to become payable by the Company or any of the Subsidiaries to any of their respective directors or executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director or directorexecutive officer, (CD) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Employee Benefit Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or any of the Subsidiaries is a party; party or (E) pay involving a director or make any dividend or distribution of cash or other property with respect to the units or other equity interests executive officer of the Company;
(ii) (A) createCompany or any of the Subsidiaries, incurexcept, assumein each case, guarantee, endorse as required by applicable Law from time to time in effect or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonEmployee Benefit Plans;
(iiivi) subject to any Lien Lien, any of the properties or otherwise encumber orassets (whether tangible or intangible) of the Company or any of the Subsidiaries, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets of the Company and the Subsidiaries (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) Business or for the purpose of the Companydisposing of obsolete or worthless assets);
(vviii) except as provided other than in Section 6.6 hereofthe Ordinary Course of Business, cancel or compromise any material debt or claim or waive or release any material right of the Company or any of the Subsidiaries;
(ix) enter into any commitment for capital expenditures of the Company and the Subsidiaries in excess of RMB 500,000.00 for any individual commitment and RMB 2,000,000.00 for all commitments in the aggregate;
(x) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of the Subsidiaries;
(xi) permit the Company or any of the Subsidiaries to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) make or rescind any election relating to Taxes, settle or compromise any pending or threatened Legal Proceeding or any claim or claims forclaim, action, suit, litigation, proceeding, arbitration, investigation, audit controversy relating to Taxes, or that would result in a loss except as required by applicable law or GAAP, make any material change to any of revenue of, an amount that could, individually its methods of accounting or methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify preparation of its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementmost recent Tax Return; or
(xviixiii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company6.2(b).
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Seller shall, and shall cause the Company shallto:
(i) conduct Conduct the Business businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of applicable to the operation the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companylaws.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Companies or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompanies, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of e the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, lien (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of either of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit either of the Companies to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Samples: Stock Purchase Agreement (CTT International Distributors Inc.)
Conduct of the Business Pending the Closing. (a) Except Subject to any obligations as a debtor in possession under the Bankruptcy Code and except as otherwise expressly provided contemplated by this Agreement or with any Orders of the prior written consent of NewcoBankruptcy Court, between from the date hereof and Execution Date until the ClosingClosing Date, the Company shall:
(i) Seller will conduct the Business only substantially in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect manner as conducted on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) . Without limiting the generality of the foregoing, subject to any obligations as a debtor in possession under the Bankruptcy Code and except as otherwise expressly provided contemplated by this Agreement or with any Orders of the prior written consent of NewcoBankruptcy Court, from the Company shall notExecution Date until the Closing Date, Seller will:
(ia) (A) increase use, preserve and maintain the salary Acquired Assets on a basis consistent with Seller’s practices as of the Execution Date, and all applicable Laws and not cause material damage to or other compensation destruction or loss of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Acquired Assets;
(ivb) acquire continue to maintain the insurance covering the Acquired Assets in effect as of the Execution Date;
(c) pay all debts and obligations incurred by them in the operation of the Business and the Acquired Assets in the ordinary course of business consistent with Seller’s obligations under the Bankruptcy Code and their practice as of the Execution Date;
(d) not commit any material properties act or assets omit to do any act, nor permit any act or sellomission to act, assign, license, transfer, convey, lease or otherwise dispose which may cause a breach of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the CompanyAcquired Contracts;
(ve) except as provided not take any action or omit to take any action whereby any Intellectual Property included in Section 6.6 hereofthe Acquired Assets may lapse, enter into or agree become abandoned, dedicated to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution tothe public, or otherwise acquire unenforceable except in the securities ordinary course of any Personbusiness;
(vif) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect downgrade or otherwise re-position its Trademarks;
(g) maintain its books, accounts and records with respect to such Acquired Assets in the ability usual manner and on a basis consistent with past practice;
(h) not enter into any agreement or agreements for the sale of a material amount of any of the parties Acquired Assets, except for sales of inventory in the ordinary course of business;
(i) not create, assume or permit to consummate exist any Lien, other than the Liens of Seller’s pre- and post-petition lenders under the Bridge Loan Agreement and DIP Credit Agreement, respectively, upon the Acquired Assets, except for Permitted Encumbrances;
(j) not amend or terminate: (i) any Acquired Contract; or (ii) any other Acquired Contract, except, in the case of such other Acquired Contracts, in the ordinary course of business; provided, that Seller will provide reasonable notice of any renewal option under any Acquired Contract (attached hereto as Schedule 6.2(j) is a list of renewal options and other termination deadlines coming due between the Execution Date and the Closing Date for any Acquired Contracts) and, so long as and to the extent that Purchaser has expressly agreed to assume such Acquired Contract or to indemnify Seller for any Liabilities resulting from such renewal, Seller will renew such Acquired Contract and, provided, further, that Seller will not be required to renew any Acquired Contract, unless and to the extent that Purchaser has expressly agreed to assume such Acquired Contract or to indemnify Seller for any Liabilities resulting from such renewal;
(k) not permit any insurance policy relating to the Business naming Seller or any Affiliate thereof as a beneficiary or a loss payable payee to be cancelled or terminated without prior notice to Purchaser;
(l) except in the case of an Alternative Transaction or if this Agreement is not approved by the Bankruptcy Court, file with the Bankruptcy Court, or permit any controlled Affiliate to file with the Bankruptcy Court, any plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization that is inconsistent with the transactions contemplated by this Agreement;
(xvm) amend the operating agreement of the Company;
(xvi) not take, or agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements commit to take, or arrangements up permit any controlled Affiliate to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) take, or agree to do anything (A) prohibited by this Section 6.2or commit to take, (B) any action that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could is reasonably likely to result in any of the conditions to the Closing set forth in Article VIII not being satisfied satisfied, or that would materially impair the ability of Seller or Purchaser to consummate the transactions contemplated by this Agreement in accordance with the terms hereof or materially delay such consummation;
(Cn) not, without prior consent of Purchaser, grant any raises to Employees, except in the ordinary course of business and in accordance with past practices; and
(o) not enter into any contract or agreement that could be reasonably expected to have a Material Adverse Effect is inconsistent with respect to any of the Companyforegoing.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (I) as set forth on Schedule 8.2, (II) as required by applicable Law, (III) as otherwise expressly provided contemplated by this Agreement or (IV) with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Company shall:
(i) conduct the Business business of the Company only in the Ordinary Course of BusinessBusiness and not introduce any new method, or discontinue any existing method, of operation or accounting;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Company, and (B) preserve the present relationships with Persons having business dealings with suppliers of the Company (including customers and suppliers)Company;
(iii) maintain (A) all of its properties and facilities, including those held under the assets Real Property Leases, in as good working order and properties ofcondition as at present, or used by, the Company consistent with past practice, ordinary wear and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementtear excepted;
(iv) file on a timely basis (Aor properly file for extensions) maintain all notices, reports or other filings required to be filed with or reported to any Governmental Body with respect to the books, accounts and records continuing operations of the Company Company; and
(v) perform in all material respects in the Ordinary Course of Business, (B) continue to collect accounts receivable its obligations under all Material Contracts and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan terms and conditions of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts all licenses and at the times set forth in such plan;
(vi) comply in all material respects with Permits and all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoingExcept (I) as set forth on Schedule 8.2, except (II) as required by applicable Law, (III) as otherwise expressly provided contemplated by this Agreement (including the Conversion) or (IV) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, delayed or conditioned), the Company shall not:
(i) declare, set aside, make or pay any dividend or other distribution (other than the distribution of Excess Cash to Holdings as contemplated herein or the payment of inter-company Liabilities) in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding securities of, or other ownership interests in, the Company;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) effect any recapitalization, reclassification or like change in the capitalization of the Company;
(iv) amend the certificate of incorporation or by-laws of the Company;
(v) other than as required by Law or any written Contract or Company Plan (as disclosed in Schedule 5.14(a)) (A) increase the salary or other annual level of compensation of any director director, officer, employee, consultant or Employee agent of the Company except for normal year-end increases other than in the Ordinary Course of Business, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director, officer, employee, consultant or directoragent, (C) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Company Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director or make any dividend or distribution of cash or other property with respect to the units or other equity interests executive officer of the Company;
(iivi) subject to any Lien, any of the properties or assets (Awhether tangible or intangible) of the Company, except for Permitted Exceptions;
(vii) acquire any properties, rights or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the properties, rights or assets of the Company (except as contemplated by (i) above or pursuant to an existing Contract for fair consideration in the Ordinary Course of Business or for the purpose of disposing of obsolete or worthless assets) to any Person, including Sxxxxxx, Holdings or any Affiliate thereof;
(viii) modify, amend, terminate any of the existing Real Property Leases or enter into any construction contracts with respect to improvements or alterations with respect to any of the Real Property Leases for an amount in excess of $75,000;
(ix) cancel or compromise any material debt or claim or waive or release any right of the Company;
(x) enter into, modify or terminate any labor or collective bargaining agreement of the Company;
(xi) permit the Company to enter into or agree to enter into any merger or consolidation with any Person;
(xii) make or rescind any material election relating to Taxes, or settle or compromise any material claim, action, suit, litigation, proceeding, arbitration, investigation, audit or controversy relating to Taxes;
(xiii) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except indebtedness for borrowed money (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in excess of such amount set forth on the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person);
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxiv) enter into any transaction or enter into, modify Contract relating primarily to the Company involving obligations or renew any Contract which by reason payments in excess of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business $75,000 in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementyear; or
(xviixv) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company8.2.
Appears in 1 contract
Samples: Unit Purchase Agreement (Simmons Co)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoKMG, between the date hereof and the Closing, the Company shallVal-Tex shall and each Principal Shareholder shall cause Val-Tex to:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Val-Tex and (B) preserve the present relationships with Persons having business dealings with the Company Val-Tex (including clients, customers and supplierssuppliers and service providers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceVal-Tex in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company Val-Tex in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Val-Tex in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the Company;Val-Tex; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or set forth in Section 2.1(d) and except with the prior written consent of NewcoKMG, the Company Val-Tex shall notnot and each Principal Shareholder shall cause Val-Tex not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of or other securities of, or other ownership interests in, Val-Tex or repurchase, redeem or otherwise acquire any outstanding equity interests or other securities of, or other ownership interests in, Val-Tex;
(ii) transfer, issue, sell, pledge, encumber or dispose of the equity interests or other securities of, or other ownership interests in, Val-Tex, or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests or other securities of, or other ownership interests in, Val-Tex;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of Val-Tex, or amend the terms of any outstanding securities of Val-Tex;
(iv) amend the certificate of formation or bylaws or equivalent organizational or governing documents of Val-Tex;
(v) (A) increase the salary or other compensation of any director director, manager, officer or Employee of the Company Employee, except for normal year-end increases in the Ordinary Course of Business, Business (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any director, officer, Employee or directorconsultant, provided, however, prior to the Closing Date, or in connection therewith, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, managers, officers, Employees, agents or representatives of the Company Val-Tex or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors directors, managers or officers of the Company Val-Tex (or amend any such agreement) to which the Company Val-Tex is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(iivi) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted ExceptionsIndebtedness, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred other than accounts payable in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Business; (B) except in the Ordinary Course of BusinessBusiness or in connection with and immediately prior to Closing, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued of Val-Tex; or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of, or used by, Val-Tex;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except material properties or assets of, or used by, Val-Tex, other than for fair consideration in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Val-Tex except in the Ordinary Course of Business;
(viixi) enter into any commitment for capital expenditures of Val-Tex in excess of $10,000 for any individual commitment and $20,000 for all commitments in the aggregate;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of Val-Tex or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any EmployeeVal-Tex;
(viiixiii) introduce any material change with respect to the operation of the BusinessVal-Tex, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsproducts or change its pricing, discount, allowance or return policies or grant any pricing, discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ixxiv) enter into any transaction or enter into, modify or renew any Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of Business;
(xxv) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, make any investments in or loans to, or pay any fees or expenses to, or enter into or modify any Contract with any Affiliate or related Person;
(xvi) make a change in its accounting or Tax reporting principles, methods or policies;
(i) make, change or revoke any Tax election, settle or compromise any Tax claim or Liability or enter into a settlement or compromise, or change (or make a request to any Taxing Authority to change) any material aspect of its method of accounting for Tax purposes, or (ii) prepare or file any Tax Return (or any amendment thereof) unless such Tax Return shall have been prepared in a manner consistent with past practice and Val-Tex shall have provided KMG a copy thereof (together with supporting papers) at least three Business Days prior to the due date thereof for KMG to review and approve (such approval not to be unreasonably withheld or delayed);
(xviii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, Val-Tex to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsPersons;
(xixix) terminate, amend, restate, supplement supplement, abandon or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xiixx) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000claims;
(xiiixxi) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesLiabilities;
(xivxxii) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this AgreementTransactions;
(xvxxiii) amend the operating agreement fail to pay any required maintenance or other similar fees or otherwise fail to make required filings or payments required to maintain and further prosecute any applications for registration of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementIntellectual Property; or
(xviixxiv) agree to do anything (A) prohibited by this Section 6.28.2, (B) that which would make any of the representations and warranties of Val-Tex or the Company Principal Shareholders in this Agreement or any of the Company Principal Shareholder Documents or Val-Tex Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect with respect to material adverse effect on the CompanyBusiness.
Appears in 1 contract
Samples: Merger Agreement (KMG Chemicals Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closing, the Selling Stockholders and the Company shall:
(i) conduct the Business respective businesses of the Company only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employeesemployees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practicein their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply in all material respects with all contractual and other obligations of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser, the Selling Stockholders and the Company shall not:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or other ownership interests in, the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or other ownership interests in, the Company;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of the Company, or amend the terms of any outstanding securities of the Company;
(iv) amend the certificate of incorporation or by-laws or equivalent organizational or governing documents of the Company;
(v) (A) increase the salary or other compensation of any director or Employee of the Company director, officer or, except for normal year-end increases in the Ordinary Course of Business, any other employee of the Company, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director, officer, employee or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) agreement to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company);
(iivi) except in the Ordinary Course of Business, (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by of the Company; or (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of, or used by, the Company;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of, or used by, the Company, other than in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, (A) enter into or agree to enter into any merger or consolidation with any Person, and not corporation or other entity; or (B) engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company except in the Ordinary Course of Business;
(viixi) enter into any commitment for capital expenditures of the Company in excess of $50,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of the Company or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employeethe Company;
(viiixiii) (A) introduce any material change with respect to the operation of the BusinessCompany, including any material change in the types, nature, composition or quality of its products or services, or, (B) other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products, or (C) change its pricing, discount, allowance or return policies or grant any pricing, discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ixxiv) enter into any transaction or enter into, modify or renew any Contract which by reason except for transfers of its size or otherwise is not Cash pursuant to normal cash management practices in the Ordinary Course of Business, make any investments in or loans to, or pay any fees or expenses to, or enter into or modify any Contract with any Related Persons;
(xxv) make a change in its accounting or Tax reporting principles, methods or policies;
(xvi) make, change or revoke any Tax election, settle or compromise any Tax claim or liability or enter into a settlement or compromise, or change (or make a request to any taxing authority to change) any material aspect of its method of accounting for Tax purposes;
(xvii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, Company to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixviii) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property Licenselicense, other than in the Ordinary Course of Business or (B) Permit;
(xiixix) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiiixx) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xivxxi) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxii) agree to do anything (A) prohibited by this Section 6.2, (B) that which would make any of the representations and warranties of the Company Selling Stockholders in this Agreement or any of the Selling Stockholder Documents or Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect with respect Effect; and
(xxiii) fail to the Companypay any required maintenance or other similar fees or otherwise fail to make required filings or payments required to maintain and further prosecute any applications for registration of Intellectual Property.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 8.2(a), (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser, between Sellers shall, solely as relates to the date hereof Business, and shall cause the Closing, the Company shallSubsidiaries to:
(i) conduct the Business and the business of the Subsidiaries only in the Ordinary Course of Business;; and
(ii) use its commercially reasonable efforts their Commercially Reasonable Efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of Sellers (as they relate to the Company Business) and the Subsidiaries and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and supplierssuppliers of Sellers (as they relate to the Business) and the Subsidiaries.
(b) Except (i) as set forth on Schedule 8.2(b);
, (ii) as required by applicable Law, (iii) maintain (A) all of the assets and properties of, as otherwise contemplated by this Agreement or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain with the booksprior written consent of Purchaser, accounts and records of Sellers shall not, solely as relates to the Company in the Ordinary Course of Business, and shall not permit the Subsidiaries to:
(Bi) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet than in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts as required by Law or Liabilities utilizing all available cash and any available line of creditContract, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) materially increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessEmployee, (B) grant any bonusadopt, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under under, any (or create Subsidiary Plan or, with respect to Employees only, any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, forEmployee Benefit Plan, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (DC) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make with any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyEmployee;
(ii) (A) create, incur, assume, guarantee, endorse subject any of the Purchased Assets or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) of the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms assets of any Indebtedness or other Liability; or (D) make any loansof the Subsidiaries, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber orLien, except for Permitted Exceptions, permit, allow or suffer to be subjected subject the Shares to any Lien or otherwise encumbered, any of the Purchased AssetsLien;
(iviii) acquire any material properties or assets that would be Purchased Assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any portion of the Purchased Assets (except pursuant to an existing Contract or inventory in the Ordinary Course of Business or for fair consideration the purpose of disposing of obsolete or worthless assets) in each case, with an aggregate value in excess of Twenty-Five Thousand Dollars ($25,000);
(iv) cancel or compromise any debt or claim or waive or release any right of any Subsidiary or Seller that constitutes a Purchased Asset except in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel declare, set aside, make or pay any dividend or other distribution in respect of the Shares or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, any of the Subsidiaries;
(vii) transfer, authorize for issue, issue, sell or dispose of any Shares or grant options, warrants, calls or other rights to purchase or otherwise acquire Shares or allot or agree to allot any shares or other securities;
(viii) effect any recapitalization, reclassification or like change in the capitalization of the Subsidiaries; or
(ix) amend the certificate of incorporation or bylaws or comparable organizational documents of Sellers or the Subsidiaries.
(x) make any material Tax election or settle or compromise any debt material Tax Liability, in each case with respect to Taxes of the Subsidiaries;
(xi) [Reserved]
(xii) (A) incur or claimassume any Indebtedness, other than trade payables incurred in the Ordinary Course of Business; (B) assume, guarantee, endorse or otherwise become liable or responsible (whether directly, contingently or otherwise) for any obligations of any other Person; or (C) make any loans, advances or capital contributions to, or waive investments in, any other Person;
(xiii) modify, other than in an immaterial manner, any policy or release procedure with respect to the collection of receivables or payment of payables;
(xiv) pay, discharge or satisfy before it is due any material right of the Company claim or Liability or fail to pay any such item in a timely manner, in each case except in accordance with the Ordinary Course of Business;
(viixv) enter intoexcept to the extent required by Law, modify change any accounting principle or terminate method;
(xvi) take or suffer any labor action that would result in the cancellation, termination, lapse or collective bargaining agreement or, through negotiation or otherwise, non-renewal of any insurance policy (unless such policy is replaced with comparable insurance);
(xvii) make any commitment or incur any Liability expenditure, lease or commitment for additions to any labor organization property or equipment or other assets in excess of Twenty-Five Thousand Dollars ($25,000) (individually or in the aggregate) and with respect to any Employeea term in excess of twelve (12) months;
(viiixviii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than except in the Ordinary Course of Business, make amend, waive, surrender or terminate or agree to the amendment, waiver, surrender or termination of any change in product specifications Material Contract or prices or terms of distributions of such productsany material Permit;
(ixxix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not except in the Ordinary Course of Business, exercise any right or option under or extend or renew any Material Contract;
(xxx) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan enter into or credit agreements engage in any transaction with its Affiliates;
(xxi) pay any management charge to Sellers or arrangements up to any entity other than the maximum amounts and other terms as in effect on the date of this AgreementSubsidiaries; or
(xviixxii) agree agree, commit or offer (in writing or otherwise) to do anything (A) prohibited by this Section 6.2, (B) that would make take any of the representations and warranties actions described in clauses “(i)” through “(xxi)” of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanySection 8.2(b).
Appears in 1 contract
Samples: Purchase Agreement (Banctec Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closing, (1) the Company Sellers shall, with respect to the Business, and (2) the Companies shall, and the Companies shall cause the Subsidiaries to:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employeesemployees) and goodwill of the Company Business and (B) preserve the present relationships with Persons having business dealings with the Company Business (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used byin, the Company consistent with past practiceBusiness, in each case, in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company referred to in clause (A) above in such amounts and of such kinds substantially comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Companies and Subsidiaries and those otherwise related to the Business in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on related to the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply in all material respects with all contractual and other obligations of the CompanyCompanies and Subsidiaries and those otherwise binding upon the Business;
(v) comply in all material respects with the capital expenditure plan of the Company Companies and Subsidiaries for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)the fiscal years 2005 and 2006, including substantially making such capital expenditures in the amounts and at the times set forth in such plan;; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser, (1) the Company Sellers shall not, with respect to the Business, and (2) the Companies shall not, and the Companies shall cause the Subsidiaries not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of, or other ownership interests in, any of the Companies or Subsidiaries or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, any of the Companies or Subsidiaries;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or other ownership interests in, any of the Companies or Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or other ownership interests in, any of the Companies or Subsidiaries;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of any of the Companies or Subsidiaries, or amend the terms of any outstanding securities of any Company or Subsidiary;
(iv) amend the certificate of incorporation or by-laws or equivalent organizational or governing documents of any of the Companies or Subsidiaries;
(v) except as otherwise provided in Section 6.13, administer their employee vacation and paid time off policy, including year-to-year carryover allowances, other than in accordance with the Ordinary Course of Business with respect to employees of any of the Company or Subsidiaries and Business Employees and will not (A) increase the salary rate of compensation or other compensation benefits for any current or former director, officer, employee or independent contractor of any director or Employee of the Company Companies or Subsidiaries or Business Employee, or otherwise enter into or alter any employment, change in control, transaction or sale bonus, deferred compensation, severance, retirement, consulting or managerial services agreement with respect to any current or former director, officer, employee or independent contractor of any of the Companies or Subsidiaries or Business Employee, except for normal yearpromotion, merit or cost-end of-living increases to non-executive employees or independent contractors, the hiring of new employees (each a “New Hire”) with a maximum of $175,000 in total annual target compensation (including bonus) but exclusive of commissions and value of Benefit Plans and in each case in the Ordinary Course of Business, or (B) establish, adopt, enter into or modify any collective bargaining agreement or compensation or benefit plan, in each case covering any current or former director, officer, employee or independent contractor of any of the Companies or Subsidiaries or Business Employee, other than amendments that would not increase costs on Purchaser, amendments to Benefit Plans required by Law or implementation of Benefit Plans to replace a similar terminating Benefit Plan on substantially the same terms as such terminating Benefit Plan;
(vi) except for letters of credit, performance bonds or guarantees and inter-company Indebtedness, provided or incurred, as the case may be, each in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of, or used in, the Business;
(ivviii) except as set forth on Schedule 6.2(b)(viii), acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of, or used in, the Business other than in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not engage in any new business or line of business, invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of any of the Company Companies or Subsidiaries, except in the Ordinary Course of Business;
(viixi) other than as set forth in the capital expenditure plan on the Companies and the Subsidiaries for the fiscal years 2005 and 2006, enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make into any commitment or incur for capital expenditures of the Companies and Subsidiaries in excess of $100,000 for any Liability to any labor organization with respect to any Employeeindividual commitment and $250,000 for all commitments in the aggregate;
(viiixii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsproducts or change its discount, allowance or return policies or grant any discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ixxiii) enter into any transaction or enter into, into or modify or renew any Material Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of Business;
(xxiv) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, make any investments in or loans to, or pay any fees or expenses to, or enter into or modify any Contract with any Related Persons;
(xv) make a material change in its accounting or Tax reporting principles, methods or policies;
(xvi) make, change or revoke any election concerning Taxes or Tax Returns, change an annual accounting period, enter into any closing agreement with respect to Taxes, settle or compromise any Tax claim or assessment or obtain or enter into any Tax ruling, in each case, if taking such action would materially affect the Taxes of any of the Companies or Subsidiaries after the Closing Date or prepare or file any material Tax Return (or any amendment thereof) unless such Tax Return shall have been prepared in a manner consistent with past practice except as required by Law;
(xvii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, any Company or the ability of Newco or Purchaser, Subsidiary to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personspersons (other than as provided for in this Agreement);
(xixviii) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Licensed Intellectual Property LicenseProperty, other than in the Ordinary Course of Business or (B) Permit;
(xiixix) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000100,000;
(xiiixx) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxi) agree to do anything (or omit from doing anything solely in respect of clause (B)) (A) prohibited by this Section 6.2, (B) that which the Sellers or the Companies knew or would reasonably be expected to have known would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Seller Documents or Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would have, or would be reasonably expected to have have, a Material Adverse Effect with respect Effect.
(c) Notwithstanding any other provision of this Agreement except the final sentence of this Section 6.2(c), neither the Reorganization nor any aspect thereof shall (1) constitute a breach of any representation, warranty, covenant or agreement hereunder or (2) give rise to any claim for indemnification hereunder (other than pursuant to Section 8.2(a)(v) and Section 9.1(ii)). “Reorganization” means (i) the extraction of Cash by the Sellers and their Affiliates from the Companies and Subsidiaries, by dividend or other means, and any related actions including conversion of CSG International Limited to an unlimited liability company (and any related change in ownership thereof among the Companies and Subsidiaries and related assumption of Liabilities thereof), (ii) elections under Treasury Regulation Sections 301.7701-1(3)(c) to treat certain Subsidiaries as disregarded entities and (iii)(A) the transfer to, and assumption by, any Company or Subsidiary of assets or properties (including contract rights and other intangible assets) and related Liabilities of the Sellers or their Affiliates (other than the Companies or Subsidiaries), which (1) are used or primarily related to the CompanyBusiness or (2) are set forth on Schedule 6.2(c) and (B) the transfer by the Companies and Subsidiaries to, and assumption by, the Sellers and any of their Affiliates (other than the Companies and Subsidiaries) of any and all assets or properties (including contractual rights or other intangible assets) and related Liabilities which are not used to any significant extent in the Business, including the FairPoint Business. Notwithstanding the foregoing, the Sellers shall not take or omit to take, or cause or permit any of the Companies or Subsidiaries to take or omit to take, any action in connection with the Reorganization that would impair or adversely affect in any material respect the operations of the Business after the Closing, it being understood that (x) the extraction of Cash from the Company and Subsidiaries shall not be deemed to impair or adversely affect such operations unless the same affects the ability to satisfy immediate Cash needs (such as payroll) or to satisfy performance bonds or similar commitments at or after Closing (and such condition did not exist prior the taking of actions contemplated by clause (i) of the definition of Reorganization) and (y) the conversion contemplated by clause (i) of the definition of Reorganization and the elections contemplated by clause (ii) of the definition of Reorganization shall not be deemed to impair or adversely affect such operations.
Appears in 1 contract
Samples: Securities Purchase Agreement (CSG Systems International Inc)
Conduct of the Business Pending the Closing. Subject to any obligations as a debtor in possession under the Bankruptcy Code and except as (ai) Except otherwise expressly contemplated by this Agreement or pursuant to the written consent of Purchaser, (ii) described on Schedule 6.3 attached hereto, or (iii) explicitly permitted pursuant to the debtor-in-possession credit facility between the Senior Lender and Sellers, from the date hereof until the Closing Date, Sellers shall (i) conduct the Business in the Ordinary Course of Business (including with respect to the payment of accounts payable to the fullest extent permissible under the Bankruptcy Code), (ii) use commercially reasonable efforts to preserve intact the Business, to keep available the services of the present employees of the Business and, (iii) not take any action inconsistent with this Agreement or with the consummation of the Closing. Without limiting the generality of the foregoing, subject to any obligations as a debtor in possession under the Bankruptcy Code and except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoPurchaser or except as described on Schedule 6.3 attached hereto, between from the date hereof and until the ClosingClosing Date, the Company each Seller shall:
(ia) conduct not sell, assign, transfer, convey, pledge, mortgage, lease, license or otherwise dispose of or encumber any of the Acquired Assets, or any interests therein, other than in the Ordinary Course of Business only and consistent with past practice;
(b) not make any material change in its methods of management, marketing, accounting or operating (or practices relating to payments);
(c) report periodically to Purchaser concerning the status of the Business, the Acquired Assets and its operations and finances;
(d) not take any action which is inconsistent with its obligations under this Agreement;
(e) maintain the Acquired Assets in good operating condition and repair, subject to ordinary wear and tear;
(f) continue all of its existing policies of insurance (or comparable insurance) in full force and effect and at least at such levels as are in effect on the date hereof, up to and including the Closing (and not cancel any such insurance or take, or fail to take, any action that would enable the insurers under such policies to avoid liability for claims arising out of occurrences prior to the Closing);
(g) not enter into any transaction or make or enter into any contract or commitment or amend any material contract or commitment which is not in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice;
(h) not grant any increase in the compensation payable or to become payable to any employee (including, and without limitation, retention or stay bonus arrangements), except such increases as are required by contract or pursuant to the Retention Plan;
(Bi) insurance upon all not contribute or make any commitment to, or representation that it shall, contribute any amounts to any Employee Benefit Plan of Sellers, or otherwise alter any such Employee Benefit Plan of Sellers or the assets and properties funding thereof except as required by law or by the terms of the Company in any such amounts and of such kinds comparable to that plan as in effect on the date of this Agreement;
(iv) (Aj) maintain the books, accounts Books and records of the Company Records in the Ordinary Course of Businessusual, (B) continue to collect accounts receivable regular and pay accounts payable ordinary manner and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply consistent with all contractual and other obligations of the Companypast practice;
(vk) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects maintain compliance with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance laws, rules and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment Regulations of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoingfederal, except as otherwise expressly provided by this Agreement state, local or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary foreign governmental or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect regulatory bodies that relate to the units or other equity interests of Business and the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Acquired Assets;
(ivl) acquire not implement any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of employee layoffs that could implicate the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the CompanyWARN Act;
(vm) except as provided in Section 6.6 hereof, enter into apply or agree to enter into continue prosecution of applications already submitted for any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution toPermits required under Environmental Laws, or otherwise acquire under any other Regulation, for the securities continued operation of any Personthe Business (as it is currently being operated) up to and after Closing;
(vin) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or not incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the BusinessLiability, including any material change in the typeswhether absolute, naturefixed or contingent, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; orconsistent with past practice;
(xviio) not sell, transfer, license or otherwise dispose of, or agree to do anything sell, transfer, license or otherwise dispose of, or permit to lapse any of the Intellectual Property; and
(Ap) prohibited by this Section 6.2not terminate, discontinue, close or dispose of any plant, Leased Facility or business operation of Sellers. Sellers will not (Bi) take or agree or commit to take any action that would make any representation and warranty of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect Sellers hereunder inaccurate in any material respect at, or could result as of any time prior to, the Closing Date or (ii) omit or agree to omit to take any action necessary to prevent any such representation or warranty from being inaccurate in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with material respect to the Companyat any such time.
Appears in 1 contract
Samples: Asset Purchase Agreement (Childtime Learning Centers Inc)
Conduct of the Business Pending the Closing. (a) Except 7.2.1. From and after the date hereof and until the Closing Date, except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closingwhich shall not be unreasonably withheld, the Company Seller shall:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) 7.2.1.1. use its commercially their reasonable commercial efforts to (A) preserve the present business Business operations, organization (including officers and all Employees) and goodwill of the Company Business and (B) preserve the present relationships with Persons having business dealings with Seller in the Company (conduct of, or relating to, the Business, including customers and suppliers);
(iii) 7.2.1.2. maintain (A) all of the assets Purchased Assets in their current condition, ordinary wear and properties of, or used by, the Company consistent with past practice, tear excepted and (B) insurance upon all of the assets and properties of the Company Purchased Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) 7.2.1.3. (A) maintain the books, accounts and records of Seller relating to the Company Business in the Ordinary Course ordinary course of Businessbusiness, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet and Taxes consistent with past practice in the Ordinary Course of Business Business, utilizing normal procedures and without materially discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all material contractual and other obligations applicable to the operation of the CompanyBusiness, including those included in the Purchased Contracts;
(v) comply with 7.2.1.4. maintain all Permits relating to the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures Business in the amounts full force and at the times set forth in such planeffect;
(vi) comply in all 7.2.1.5. provide Purchaser with prompt notice of any material respects damage, destruction or loss, whether or not covered by insurance, with all applicable Lawsrespect to the Purchased Assets or any other event that could reasonably be expected to have a Material Adverse Effect;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) 7.2.1.6. pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Transferred Intellectual Property Property;
7.2.1.7. comply in all material respects with all applicable Laws; and consult with Purchaser regarding all material terms including financial terms of all negotiations with customers of the CompanyBusiness for the supply of goods or services or in preparation of responses to RFP’s or bids for tenders in connection with the Business, it being clarified that Purchaser shall have no veto rights with respect thereto, however, Purchaser shall have no obligation to assume any proposal that was not so approved by Purchaser;
7.2.1.8. not take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement.
(b) Without limiting the generality of the foregoing, except 7.2.2. Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, the Company which shall not be unreasonably withheld, Seller shall not:
(i) 7.2.2.1. hire any new employee to serve in the Business or, except as required under this Agreement, terminate any Employee, or, except as may be required pursuant to any applicable Law, (A) increase the salary or other level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessEmployee, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement Employee Plan made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company Employees or otherwise modify or amend or terminate any such plan Employee Plan, , or arrangement (DC) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition consulting or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Seller is a party; party or (E) pay involving Employee in his or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyher capacity as an Employee;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) 7.2.2.2. subject the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject Purchased Assets to any Lien or otherwise encumber or, except for Permitted Exceptions, or permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased AssetsAssets (whether tangible or intangible), except under any applicable Law;
(iv) 7.2.2.3. acquire any material properties or assets in connection with the Business or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, 7.2.2.4. enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Personother entity;
(vi) 7.2.2.5. cancel or compromise any debt or claim, claim or waive or release any material right of Seller in respect of the Company except Purchased Assets;
7.2.2.6. enter into any commitment for capital expenditures relating to the Business in excess of $1,000 for any individual commitment and $5,000 for all commitments in the Ordinary Course of Businessaggregate;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, 7.2.2.7. make any commitment or incur expenditures in excess of $1,000 for any Liability individual expenditure and $10,000 for all expenditures in the aggregate, provided however, that Seller shall be allowed to any labor organization make the following expenditures which shall not be counted towards the abovementioned caps:payment of monthly rent in accordance with respect to any EmployeeSeller’s currently in force lease agreement, and payment of municipality property tax (‘Arnona’) and utilities fess (i.e., electricity, water, telephone and internet);
(viii) 7.2.2.8. introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, or make any material change in product specifications or prices or terms of distributions of such products;
(ix) 7.2.2.9. enter into any transaction relating to the Business which is not in the ordinary course of business or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of BusinessPurchased Contract;
(x) 7.2.2.10. enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate7.2.2.11. Terminate, materially amend, restate, supplement or waive any material rights under any (A) Material Contract, Real Property Lease, Personal Property Lease Contract or Purchased Intellectual Property License, other than in the Ordinary Course of Business License or (B) Permit;
(xii) 7.2.2.12. make or change any election in respect of Taxes, adopt or change any accounting method in respect of Taxes, file any amendment to a Tax Return, enter into any closing agreement, settle or compromise any pending or threatened Legal Proceeding or any claim or claims forassessment in respect of Taxes, or that would result in a loss of revenue of, an amount that could, individually consent to any extension or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability waiver of the parties limitation period applicable to consummate any claim or assessment in respect of Taxes, in each case related primarily to the transactions contemplated by this Agreement;
(xv) amend Business, the operating agreement Purchased Assets or the Assumed Liabilities, except, in each case, with respect to any of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up foregoing that relates to the maximum amounts and other terms as Taxes payable in connection with this transaction, provided that, Purchaser shall not unreasonably withhold its consent to the making or changing of such election if such election could not have a material adverse effect on the date of this AgreementSeller and/or the Purchaser; or
(xvii) or 7.2.2.13. agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.7.2.2
Appears in 1 contract
Samples: Asset Purchase Agreement (Ectel LTD)
Conduct of the Business Pending the Closing. (a) Except From the date of this Agreement until the Closing, except (w) as set forth on Schedule 4.2, (x) as required by applicable Law, (y) as otherwise expressly provided contemplated by this Agreement Agreement, or (z) with the prior written consent of NewcoBuyer (which consent will not be unreasonably withheld, between conditioned or delayed, and which consent will be deemed to have been given if Buyer does not object within one Business Day after receiving a request for such consent from Seller Parent or any Sellers), Seller Parent and Sellers will cause the date hereof Companies and the Closing, the Company shalltheir Subsidiaries to:
(i) conduct the Business only their respective businesses in all material respects in the Ordinary Course of Business; and
(ii) use their respective commercially reasonable efforts to preserve in all material respects the present (A) business operations, organization and goodwill of the Companies and their Subsidiaries and (B) relationships with material customers, suppliers, licensors, licensees, contractors, distributors and others having material business dealings with the Companies and their Subsidiaries.
(b) From the date of this Agreement until the Closing, except (v) as set forth on Schedule 4.2, (w) as required by applicable Law, (x) as required by the terms of any Collective Bargaining Agreement, (y) as otherwise contemplated by this Agreement, or (z) with the prior written consent of Buyer (which consent will not be unreasonably withheld, conditioned or delayed, and which consent will be deemed to have been given if Buyer does not object within one Business Day after receiving a request for such consent from Seller Parent or any Sellers), Seller Parent and Sellers will cause the Companies and their Subsidiaries not to:
(i) sell, lease, license, transfer, allow to lapse, abandon, dispose of, pledge or encumber any material assets (including any of the items listed on Schedule 2.13(a)) of the Companies or any of their Subsidiaries (other than in the Ordinary Course of Business (excluding any exclusive licenses to Intellectual Property) or for the purpose of disposing of obsolete or worthless assets);
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill make any material acquisition of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)any assets or businesses;
(iii) maintain (A) all of the assets and properties ofincur, assume or used byguarantee any Indebtedness that will not be repaid at Closing, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company other than unsecured current liabilities incurred in the Ordinary Course of Business, or (B) continue make or forgive any loans or advances, or capital contributions to collect accounts receivable and pay accounts payable and or investments in, any other Liabilities set forth on Person;
(iv) enter into any Contract that would have been deemed a Material Contract if it had been in effect as of the Balance Sheet date hereof, or terminate or extend or modify or amend such Contract or any Material Contract, in each case except for renewals, terminations or expirations in accordance with the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment terms of such accounts Contract or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the CompanyMaterial Contract;
(v) comply with enter into any Contract for the capital expenditure plan purchase, sale, lease or sublease of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)any real property, including making such capital expenditures in the amounts and at the times set forth in such planor any interest therein;
(vi) comply declare, set aside or pay any dividend or distribution on any Equity Interests, other than dividends or distributions paid in all material respects with all applicable Lawscash or those described in Section 1.7(a);
(vii) take steps to renew all Permits in a timely manner prior to amend the Organizational Documents of the Companies or any of their lapse; andSubsidiaries;
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary issue, sell, pledge, transfer, dispose of or encumber or agree to prevent the abandonmentissue, loss sell, pledge, transfer, dispose of, or impairment of all Intellectual Property encumber any shares or equity interests of the Company.Companies or any of their Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock, equity interests or other securities of the Companies or any of their Subsidiaries;
(bix) Without limiting effect any recapitalization, reclassification or like change in the generality capitalization of the foregoing, except as otherwise expressly provided by this Agreement any Company or with the prior written consent any of Newco, the Company shall not:its respective Subsidiaries;
(ix) Except as may be required by any Seller Benefit Plan in existence on the date hereof, (A) materially increase the salary annual level of compensation or other compensation benefits of any director employee, director, manager or Employee officer of the any Company except for normal year-end increases or any Subsidiary of any Company other than in the Ordinary Course of Business, (B) grant or pay any bonusretention, benefit severance, bonus or other direct or indirect compensation benefit to any Employee or directoremployee of any Company, (C) amend any Seller Benefit Plan in a manner that could increase the coverage or benefits available under any (or create any new) severance paycosts to Buyer, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, forthe Companies, or with any Subsidiaries of the directors, officers, Employees, agents or representatives of Companies under Section 4.9 as compared to the Company or otherwise modify date hereof or amend or terminate any Company Benefit Plan in a manner that would materially increase the applicable Company’s cost of maintaining such plan or arrangement Company Benefit Plan, (D) enter into loan any employmentmoney to any employee, deferred compensationdirector, stay bonusmanager or officer of any Company or any Subsidiary of any Company, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay grant any equity or make equity-based awards of a Company to any dividend employee of any Company or distribution any Subsidiary of cash or other property with respect to the units or other equity interests of the any Company;
(iixi) (A) createhire or offer to hire any new employee with an annual base salary in excess of $120,000, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) terminate or encourage any employee to resign (other than a termination for cause) or (C) announce any general layoff of employees or implement any early retirement plan;
(xii) except in to the extent required by applicable Laws or any Collective Bargaining Agreement, (A) modify, extend or enter into any Collective Bargaining Agreement or arrangements with any labor organization or works council; or (B) recognize or certify any labor organization or works council or group of employees of the Companies or their Subsidiaries as the bargaining representative for any employees of the Companies or their Subsidiaries;
(xiii) merge or consolidate with any Person or adopt a plan of complete or partial liquidation or authorize or undertake a dissolution, consolidation, restructuring or other reorganization;
(xiv) make any capital expenditure (or series of related capital expenditures) involving more than $100,000 or outside the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy postpone or delay any Indebtedness issued capital expenditures otherwise planned or guaranteed by budgeted for the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personcurrent fiscal year;
(iiixv) subject to terminate any Lien insurance policies held by Seller Parent or otherwise encumber or, except its Affiliates on behalf of or for Permitted Exceptions, permit, allow the benefit of the Companies or suffer to be subjected to any Lien or otherwise encumbered, any of their Subsidiaries currently in force or lower the Purchased Assetscoverages and limits as are in effect as of the date of this Agreement;
(ivxvi) acquire any make a material properties change in its accounting or assets Tax principles, methods or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Companypolicies;
(vxvii) except as provided in Section 6.6 hereofmake, enter into revoke or agree change any material Tax election, file any amended Tax Return, change or revoke any material Tax accounting method, fail to enter into file any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution tomaterial Tax Return when due, or otherwise acquire the securities of settle or compromise any Personmaterial Tax Liability;
(vixviii) cancel except for Legal Proceedings as to which such settlement does not contain terms that would be binding on the Companies or any of their Subsidiaries after the Closing, waive, release, compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;Proceeding; or
(xiiixix) change authorize or modify its credit, collection enter into any agreement or payment policies, procedures or practices, including acceleration commitment with respect to any of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the foregoing.
(xivc) take any action which would adversely affect From the ability date of this Agreement until the parties to consummate the transactions Closing, except (i) as required by applicable Law, (ii) as otherwise contemplated by this Agreement;, or (iii) with the prior written consent of Buyer (which consent will not be unreasonably withheld, conditioned or delayed), Sellers and their Affiliates (excluding the Companies and their Subsidiaries) will not make any assignment, transfer or other disposal to a third party of any Intellectual Property owned by any of them that, but for such assignment, transfer or other disposal, would be Licensed IP or Licensed Patents (as defined in Section 4.14(c)).
(xvd) amend Buyer acknowledges and agrees that (i) nothing contained in this Agreement will give Buyer, directly or indirectly, the operating agreement right to control or direct the operations of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan Companies or credit agreements or arrangements up their Subsidiaries prior to the maximum amounts Closing and other (ii) prior to the Closing, the Companies will exercise, consistent with the terms as in effect on the date and conditions of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of complete control and supervision over the representations Companies’ and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companytheir Subsidiaries’ respective operations.
Appears in 1 contract
Samples: Stock Purchase Agreement (Babcock & Wilcox Enterprises, Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser (not to be unreasonably withheld, conditioned or delayed), between the date hereof and the ClosingClosing or earlier termination of this Agreement, the Company shallCompanies shall and Seller shall cause the Companies to:
(i) conduct the Business businesses of the Companies only in the Ordinary Course of Business, including, without limitation, maintaining Vault Cash Balances in the Company ATM’s in a manner consistent with past practices and as necessary to minimize periods in which any Company ATM is empty of Vault Cash;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employeesemployees) and goodwill of the Company Companies and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent Companies in their current condition, ordinary wear and tear excepted (excepting the sale of inventory in the Ordinary Course of Business and the sale of obsolete equipment that is being simultaneously replaced with past practicesuitable replacement equipment), and (B) insurance upon all of the properties and assets and properties of the Company Companies in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Companies in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet utilizing normal procedures each in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line except as consistent with Ordinary Course of creditBusiness, and (C) use commercially reasonable efforts to comply in all material respects with all contractual and other obligations of the Company;Companies; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
. Notwithstanding the foregoing or anything in this Agreement to the contrary (viiincluding, without limitation, Section 6.2(b) below), the Companies shall be free to distribute cash and take steps actions with respect to renew all Permits Company Indebtedness and Company Expenses, even if not in the Ordinary Course of Business, but in each case subject to (A) the adjustments to the Purchase Price that will be required by Section 2.2 or Section 2.4 as a result thereof and (B) the overall limitation that no such distribution of cash or such taking of actions with respect to Company Indebtedness or Company Expenses shall be permitted if it (i) will result in the Purchase Price being adjusted to an amount less than $80,000,000 or (ii) could result in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the CompanyMaterial Adverse Effect.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser (not to be unreasonably withheld, delayed or conditioned), the Company Companies shall not, and Seller shall cause the Companies not to:
(i) repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, any Company;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or other ownership interests in, any Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or other ownership interests in, any Company;
(iii) amend the certificate of incorporation, certificate of formation, by-laws, limited liability company operating agreement, or equivalent organizational or governing documents of any Company;
(iv) (A) increase the salary or other compensation of any director director, officer or Employee employee of the any Company except for normal year-end increases in the Ordinary Course of Business, (B) except to the extent paid in full at or prior to the Closing, grant any bonus, benefit or other direct or indirect compensation to any Employee director, officer, employee or directorconsultant that is not required by a binding contractual obligation of the Companies, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the any Company or otherwise modify or amend or terminate any such plan or arrangement arrangement, (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition employment or similar compensation agreement or arrangement with any directors or officers of the any Company (or amend any such agreement) agreement to which the any Company is a party; ) or (E) pay or make hire any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companynew employee;
(iiv) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted ExceptionsIndebtedness, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except other than in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivvi) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of, or used by, any Company, other than in the Ordinary Course of Business) of the Company;
(vvii) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not or engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;.
(viviii) cancel or compromise any debt or claim, claim or waive or release any material right of the any Company except in the Ordinary Course of Business;
(viiix) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material a change in the typesits accounting reporting principles, nature, composition methods or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Businesspolicies;
(x) make, change or revoke any Tax election or change any aspect of its method of accounting, unless otherwise required under applicable Law;
(xi) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, any Company to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsindividual;
(xixii) terminate, amend, restate, supplement or restate any rights or waive any rights material right under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend enter into any Contract that would constitute a Material Contract for purposes of Section 4.14(a) had such Contract been in existence on the operating agreement of the Company;date hereof; or
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement and the schedules attached hereto or with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, delayed or conditioned), during the period from the date of this Agreement to and through the Closing Date, pursuant to the Enron Purchase Agreement, Seller shall request, and use commercially reasonable efforts to have such request honored, that the Transfer Group Companies (A) conduct their respective businesses in all material respects in the Ordinary Course of Business, and (B) preserve in all material respects the present business operations, organization and goodwill of the Transfer Group Companies. For the avoidance of doubt, the foregoing shall not require Seller or any of the Transfer Group Companies to make any payments, incur any costs or enter into or amend any contractual arrangements, agreements or understandings, unless such payment, incurrence or other action is required by Applicable Law, by contractual obligation with such third parties or to operate in the Ordinary Course of Business.
(b) Except as otherwise expressly contemplated by this Agreement or with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between delayed or conditioned), pursuant to the date hereof Enron Purchase Agreement, Seller shall request, and shall use commercially reasonable efforts to have such request honored, that none of the Closing, the Company Transfer Group Companies shall:
(i) conduct except as set forth on Schedule 6.2(b)(i) or as contemplated by the Business only Contribution Agreement or in the Ordinary Course schedules thereto, declare, set aside, make or pay any non-cash dividend or other non-cash distribution in respect of Businessthe capital stock of any Transfer Group Company or repurchase, redeem or otherwise acquire for non-cash consideration any outstanding shares of the capital stock or other securities of, or other ownership interests in, any Transfer Group Company;
(ii) use its commercially reasonable efforts to (A) preserve the present business operationsexcept as set forth on Schedule 6.2(b)(ii), organization (including officers and Employees) and goodwill transfer, issue, sell or dispose of any shares of capital stock or other securities of any of the Company and (B) preserve Transfer Group Companies or the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all 500,000 common units of Northern Border beneficially owned by Northern Plains as of the assets and properties ofdate of this Agreement or grant options, warrants, calls or used by, the Company consistent with past practice, and (B) insurance upon all other rights to purchase or otherwise acquire shares of the assets and properties capital stock or other securities of the Company in such amounts and Transfer Group Companies or the 500,000 common units of such kinds comparable to that in effect on Northern Border beneficially owned by Northern Plains as of the date of this Agreement;
(iii) effect any recapitalization, reclassification, stock split, or like change in the capitalization of any Transfer Group Company;
(iv) except as set forth on Schedule 6.2(b)(iv), amend the certificate of incorporation, bylaws or other organizational documents of any of the Transfer Group Companies;
(v) except as provided under the severance and retention plans and other employment arrangements listed on Schedule 6.2(b)(v) and except as would not create or increase any liability of any Northern Plains Group Company beyond any amount reflected on the Balance Sheets, (A) maintain materially increase the books, accounts and records annual level of compensation of any employee of the Company in the Ordinary Course of Business, Transfer Group Companies (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet than increases in the Ordinary Course of Business utilizing normal procedures and without discounting that in the aggregate will not result in a material increase in the benefits or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations compensation expense of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(vTransfer Group Companies taken as a whole), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant of the Transfer Group Companies, other than in the Ordinary Course of Business, (C) materially increase the coverage or benefits available under any (or, except as permitted under clause (D) or as provided on Schedule 6.2(b)(v), create or adopt any new) severance payBenefit Arrangement, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan Employee Benefit Plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company Transfer Group Companies or otherwise materially modify or amend or terminate any such arrangement or plan or arrangement (D) other than in the Ordinary Course of Business, hire any person or enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the any Transfer Group Company is a party; party or involving a director, officer or employee of the Transfer Group Companies in his or her capacity as a director, officer or employee of the Transfer Group Companies, other than (E1) pay or make any dividend or distribution of cash or other property with respect to the units any Person who fills a vacant position or other equity interests of the Company;
(ii2) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently a technical consulting engagement; provided that any such agreement or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, amendment (x) the Indebtedness reflected has a term of one year or less, and in the Balance Sheetcase of (1), (y) the Indebtedness incurred provides for no increase in compensation other than in the Ordinary Course of Business since and, (y) in the Balance Sheet Datecase of (2), will not provide the technical consultant with more than $200,000 of base annual salary, or (z) in the Indebtedness case of hirings, agreements and amendments that do not meet the requirements of subclauses (x) or (y) will not, when aggregated with all other such hirings, agreements and amendments that do not meet the requirements of subclauses (x) or (y), require total payments of base annual salary in excess of $2,000,000 or payments to any individual in excess of $350,000.
(vi) except as set forth on Company Disclosure Schedule 4.5; 6.2(b)(vi) and except for (A) trade payables, (B) indebtedness under existing lines of credit, (C) any extension, renewal or refinancing of existing indebtedness, (D) indebtedness for borrowed money incurred or guarantees issued in the Ordinary Course of Business and (E) indebtedness in an amount sufficient to allow the Transfer Group Companies to make any required capital contributions in accordance with the terms of the Northern Border Partnership Agreement, borrow monies for any reason, draw down on any line of credit or debt obligation, or become the guarantor, surety, endorser or otherwise liable for any debt, obligation or liability (contingent or otherwise) of any other Person (other than another Transfer Group Company or any Northern Border Company);
(vii) subject any of the material properties or assets (whether tangible or intangible) of the Transfer Group Companies to any Lien, except for (A) Permitted Exceptions or (B) Liens arising in the Ordinary Course of Business or by operation of Law, or subject the Equity Interest to any Lien;
(viii) except as set forth on Schedule 6.2(b)(viii), (A) acquire any properties or assets other than in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any such acquisitions of the Purchased Assets;
(iv) acquire any material properties or assets with a fair market value of up to $5,000,000 in the aggregate or (B) sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of the Transfer Group Companies other than in the Ordinary Course of Business) , except for any such dispositions of properties or assets with a fair market value of up to $5,000,000 in the Companyaggregate;
(vix) until written notice is provided to Purchaser, enter into any labor or collective bargaining agreement of the Transfer Group Companies, through negotiation or otherwise, or make any material commitment or incur any material liability to any labor organization with respect to the Transfer Group Companies;
(x) except as set forth on Schedule 6.2(b)(x), repurchase, discharge or satisfy any claim, debt or obligation of any of the Transfer Group Companies in an amount in excess of $2,000,000 in the aggregate, other than (A) in the Ordinary Course of Business, (B) pursuant to the terms of any Contract as in effect on the date of this Agreement or permitted to be entered into hereafter or (C) in the pursuit, prosecution or resolution of any pending FERC proceedings;
(xi) permit any of the Transfer Group Companies to enter into, or agree to enter into, any merger or consolidation with, any corporation or other entity;
(xii) pursuant to or within the meaning of the Bankruptcy Code or any similar federal, state or foreign law for the relief of debtors, commence a voluntary case, consent to the entry of an Order for relief against any of them in an involuntary case, consent to the appointment of a receiver, trustee, assignee, liquidator or similar official of them or for all or substantially all of its property or assets, or make a general assignment for the benefit of its creditors;
(xiii) fail to maintain, in full force and effect, to the extent commercially reasonably available, insurance coverage that is equivalent in all material respects to the insurance coverage currently in effect for the Transfer Group Companies under the Insurance Policies or comparable insurance; provided, however, that Seller shall not be in breach of this Section 6.2(b)(xiii) if any current insurer refuses to renew or continue to extend insurance coverage to the Transfer Group Companies so long as Seller uses commercially reasonable efforts to obtain equivalent insurance coverage from another reputable insurer and nothing herein shall prevent Seller from replacing any existing insurance from a current insurer with substantially equivalent insurance from another reputable insurer;
(xiv) amend, modify or change the Principal Contribution Transaction Documents (other than with respect to the Sublease and Tax Sharing Agreement and amendments contemplated in the Enron Purchase Agreement, including as provided in Section 6.6 hereof, enter into or agree to enter into 8.1(g) of the Enron Purchase Agreement);
(xv) except as set forth on Schedule 6.2(b)(xv) make any merger or consolidation with any Person, and not engage in any new business or invest in, make a single loan, advance or capital contribution to, or otherwise acquire investment in, any Person who is not a Transfer Group Company or Northern Border Company (or any entity in which a Northern Border Company has an ownership interest) in excess of $5,000,000 or a series of such loans, advances and capital contributions to, or investments in, any such Person in excess of $15,000,000 in the securities aggregate, except for loans, advances, capital contributions and investments (A) pursuant to and in accordance with the terms of any Person;
(vi) cancel or compromise any debt or claimMaterial Contract, in each case existing as of the date of this Agreement, or waive or release any material right of the Company except (B) in the Ordinary Course of Business;
(viixvi) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwiseexcept as set forth on Schedule 6.2(b)(xvi), make or commit to make any commitment single capital expenditure in excess of $5,000,000 or incur any Liability commit to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation make a series of the Business, including any material change capital expenditures in excess of $15,000,000 in the types, nature, composition or quality of products or services, oraggregate (in each case, other than capital expenditures included in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or capital forecast previously provided to Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement); or
(xvii) authorize, or commit or agree to do anything (A) prohibited by this Section 6.2take, (B) that would make any of the representations and warranties of the Company actions referred to in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or paragraphs (Ci) that could be reasonably expected to have a Material Adverse Effect with respect to the Companythrough (xvi) above.
Appears in 1 contract
Samples: Purchase Agreement (Oneok Inc /New/)
Conduct of the Business Pending the Closing. (a) Except Subject to any obligations as a debtor in possession under the Bankruptcy Code and except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoPurchaser or except as described on SCHEDULE 0 hereto, between from the date hereof and until the ClosingClosing Date, the Company shall:
Sellers shall (i) conduct the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating (including with respect to the payment of such accounts or Liabilities utilizing all payable to the fullest extent permissible under the Bankruptcy Code), (ii) use commercially reasonable efforts to preserve intact the Business, to keep available cash the services of the present employees of the Business and any available line to maintain appropriate levels of credit, Inventory and (Ciii) comply not take any action inconsistent with all contractual and other obligations this Agreement or with the consummation of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Closing. Without limiting the generality of the foregoing, subject to any obligations as a debtor in possession under the Bankruptcy Code and except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoPurchaser or except as described on SCHEDULE 6.3 hereto, from the Company shall not:
(i) (A) increase date hereof until the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Closing Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or each Seller shall: not sell, assign, license, transfer, convey, lease pledge, mortgage, lease, license or otherwise dispose of or encumber any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution toAcquired Assets, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property Licenseinterests therein, other than in the Ordinary Course of Business and consistent with past practice; not make any material change in its methods of management, marketing, accounting or operating (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected practices relating to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or payments); not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by is inconsistent with its obligations under this Agreement;
; maintain the Acquired Assets in good operating condition and repair, subject to ordinary wear and tear; continue all of its existing policies of insurance (xvor comparable insurance) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth in full force and effect and at least at such levels as are in effect on the Balance Sheet except date hereof, up to and including the Closing (and not cancel any such insurance or take, or fail to take, any action that would enable the insurers under such policies to avoid liability for claims arising out of occurrences prior to the Closing); not enter into any transaction or make or enter into any contract or commitment or amend any material contract or commitment which is not in the Ordinary Course of Business under loan Business, consistent with past practice; not grant any increase in the compensation payable or credit agreements to become payable to any employee (including, without limitation, retention or arrangements up stay bonus arrangements), except such increases as are required by contract and not contribute or make any commitment to, or representation that it shall, contribute any amounts to any Employee Benefit Plan of Sellers, or otherwise alter any such Employee Benefit Plan of Sellers or the maximum amounts and other funding thereof except as required by law or by the terms of any such plan as in effect on the date of this Agreement; or
maintain the Books and Records in the usual, regular and ordinary manner and consistent with past practice; maintain compliance with all laws, rules and regulations of all federal, state, local or foreign governmental or regulatory bodies that relate to the Business and the Acquired Assets; apply or continue prosecution of applications already submitted for any Permits required under Environmental Laws for the continued operation of the Business (xviias it is currently being operated) up to and after Closing; not incur any obligation or liability, whether absolute, fixed or contingent, except in the Ordinary Course of Business and consistent with past practice; not sell, transfer, license or otherwise dispose of, or agree to do anything sell, transfer, license or otherwise dispose of, or permit to lapse any of the Intellectual Property; and not terminate, discontinue, close or dispose of any plant, Leased Facility or business operation of Sellers. Sellers will not (Ai) prohibited by this Section 6.2, (B) take or agree or commit to take any action that would make any representation and warranty of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect Sellers hereunder inaccurate in any material respect at, or could result as of any time prior to, the Closing Date or (ii) omit or agree to omit to take any action necessary to prevent any such representation or warranty from being inaccurate in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with material respect to the Companyat any such time.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 7.2, (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), between the date hereof Parent and the Closing, the Company Seller shall:
(i) conduct conduct, and cause the Subsidiaries to conduct, the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and Business, (B) preserve the present relationships with customers, vendors, suppliers, distributors and sales prospects of the Business and any other Persons having with whom Seller or any of its Subsidiaries otherwise has material business dealings with relationships relating to the Company Business, and (including customers and suppliers)C) keep available the services of the current Business Employees;
(iii) maintain (A) maintain all existing rights, privileges, licenses and other authorizations (including all Business Intellectual Property) reasonably necessary for the operation of the assets Business, (B) continue in all material respects the current sales, marketing and properties ofpromotional activities relating to the Business, or used by(C) keep and maintain the Assets in all material respects in their current condition and state of repair to permit their use in the continuing operation of the Business, the Company consistent with past practiceordinary wear and tear excepted, and (BD) insurance upon perform its respective obligations in all of material respects under the assets Assigned Agreements and properties of the Company Real Property Leases included within the Assets in such amounts and of such kinds comparable to that in effect on accordance with the date of this Agreement;terms thereof,
(iv) make capital expenditures in the manner set forth in the Business’s 2006 capital expenditure budget (Aincluding as to time and amount);
(v) maintain cause the booksBusiness to conduct its working capital and cash management practices, the collection of accounts receivable, the payment of accounts payable (including the writing and records mailing of checks with respect thereto) and the Company maintenance of inventories in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps cause the Business to renew all Permits in a timely manner pay, prior to their lapse; and
(viii) pay the Closing Date, all maintenance Rebates due and similar fees and take all other appropriate actions as necessary payable on or prior to prevent the abandonment, loss or impairment of all Intellectual Property of the CompanyClosing Date.
(b) Without limiting the generality of the foregoingExcept (i) as set forth on Schedule 7.2, except (ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), the Company Seller shall not, and shall cause the Subsidiaries not to:
(i) repurchase, redeem or otherwise acquire any outstanding equity interests or other securities of the Transferred Subsidiaries in a manner that would adversely affect the ability of Seller to consummate the transactions contemplated by this Agreement;
(ii) transfer, issue, sell or dispose of any equity interests of Seller or the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests or other securities of Seller or the Subsidiaries in a manner that would adversely affect the ability of Seller to consummate the transactions contemplated by this Agreement, other than, in each case, to Parent, Seller or a wholly-owned Subsidiary;
(iii) effect any recapitalization, reclassification or like change in the capitalization of the Transferred Subsidiaries;
(iv) amend the organizational documents of the Transferred Subsidiaries;
(v) (A) materially increase the salary annual level of compensation payable or other compensation of to become payable by Seller or the Subsidiaries to any director Transferred Employee at a managerial level or Employee of the Company except for normal year-end increases in the Ordinary Course of Businessabove, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee Transferred Employee, other than any (x) retention or directortransaction bonuses that constitute Excluded Liabilities, (y) previously awarded non-discretionary bonuses pursuant to bonus plans listed on Schedule 5.12, and (z) bonuses required to be granted by applicable Law, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any Transferred Employee (other than any broad-based modification of the directors, officers, Employees, agents or representatives of the Company any Benefit Plan) or otherwise modify or modify, amend or terminate any such plan Benefit Plan in a manner that could result in any liability or arrangement increased liability to any Transferred Subsidiary, or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) with a Transferred Employee, except for any “at will” employment arrangement with non-managerial employees, and except, in each case, as required by applicable Law from time to which time in effect or by the Company is a party; or (E) pay or make terms of any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyBenefit Plans;
(iivi) subject to any Lien any of the Assets, except for Permitted Exceptions;
(Avii) createsell, incurlease, assumelicense, guarantee, endorse transfer or otherwise become liable or responsible with respect to (whether directlydispose of any Assets which, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptionsindividually, (x) the Indebtedness reflected have a book value in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course excess of Business since the Balance Sheet Date$50,000, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) will result in receipt of gross proceeds in excess of $200,000, except for sales or other dispositions of inventory and obsolete assets in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; ;
(C) materially modify the terms of any Indebtedness or other Liability; or (Dviii) make any loansmaterial change in any method of accounting or accounting practice with respect to the Business, advances of capital contributions to, other than in accordance with GAAP or investments in, any other Personas required by applicable Law;
(iiiix) subject cause any Transferred Subsidiary to incur any Lien indebtedness for borrowed money, guarantee any such indebtedness of another Person or issue any debt securities or grant options, warrants, calls or other rights to purchase or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to acquire any Lien or otherwise encumbered, any debt securities of the Purchased AssetsTransferred Subsidiaries;
(ivx) acquire cancel or compromise any material properties debt or assets claim or sellwaive or release any material right of Seller and the Subsidiaries related to the Business, assignthe Assets, licensethe Assumed Liabilities or the Transferred Subsidiaries, transferother than as contemplated by Section 7.12 with respect to intercompany debt among Parent, conveySeller, lease or otherwise dispose of any of Affiliate thereof, on the Purchased Assets (except for fair consideration in one hand, and the Ordinary Course of Business) of Transferred Subsidiaries, on the Companyother hand;
(vxi) solely with respect to any Business Employee, except as provided in Section 6.6 hereofrequired by Law, (A) enter into any labor or collective bargaining agreement or (B) through negotiations or otherwise, make any commitment or incur any liability to any labor organizations;
(xii) enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution toother entity, or otherwise acquire the securities or business of any other Person;
(vixiii) cancel amend, terminate or compromise modify any debt Material Contract or claimenter into any Contract which would have been required to be set forth on Schedule 5.11(a) if such Contract were in effect as of the date hereof;
(xiv) propose or consent to any change to the pricing of any Products, or waive offer any discounts or release Rebates to any material right customers of the Company except in the Ordinary Course of Business;
(viixv) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, terminate any Business Employee other than in the Ordinary Course of Business for cause or (B) Permithire any new Business Employee performing sales or management functions except to fill any of the openings identified on Schedule 7.2(b)(xv);
(xiixvi) revalue any of the Assets, including without limitation writing down or up the value of any Asset, writing off any Account Receivable, settling, discounting or compromising any Account Receivable, or reversing any reserves, in each case, other than as required by GAAP or applicable Law;
(xvii) (A) make, rescind or change any material Tax election, annual Tax accounting period or method of Tax accounting, (B) settle or compromise any pending or threatened Legal Proceeding or any material Tax claim or claims forassessment, (C) file any amended Tax Return or that would result (D) surrender any right to claim a material Tax refund, in a loss of revenue ofeach case, an amount that could, individually or in the aggregate, reasonably be expected with respect to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementTransferred Subsidiaries; or
(xviixviii) agree enter into any Contract or letter of intent to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except 7.2.1. From and after the date hereof and until the earlier of the Closing Date and the termination of this Agreement, except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoParent, between the date hereof and the Closingwhich shall not be unreasonably withheld, the Company Sellers shall:
(i) 7.2.1.1. conduct the Business only in the Ordinary Course of Business;
(ii) 7.2.1.2. use its commercially their reasonable commercial efforts to (A) preserve the present business Business operations, organization (including officers management and Employeesthe sales force) and goodwill of the Company Business and (B) preserve the present relationships with Persons having business dealings with the Company Sellers in the conduct of, or relating to, the Business (including customers and suppliers);
(iii) 7.2.1.3. use their reasonable commercial efforts to maintain (A) all of the assets Purchased Equipment in their current condition, ordinary wear and properties of, or used by, the Company consistent with past practice, tear excepted and (B) insurance upon all of the assets and properties of the Company Purchased Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement, if at all in existence;
(iv) 7.2.1.4. (A) maintain the books, accounts and records of Company and its Subsidiaries relating to the Company Business in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on and Taxes consistent with past practice in the Balance Sheet Ordinary Course of Business, utilizing normal procedures and without materially discounting or accelerating payment of such accounts, and (C) comply in all material respects with all material contractual and other obligations applicable to the operation of the Business, including those included in the Purchased Contracts;
7.2.1.5. use their reasonable commercial efforts to maintain all Permits relating to the Business in all material respects;
7.2.1.6. provide Purchaser with prompt notice of any material damage, destruction or loss, whether or not covered by insurance, with respect to the tangible Purchased Assets or any other event that could reasonably be expected to have a Material Adverse Effect;
7.2.1.7. pay all maintenance and similar fees if and when due and take all other appropriate actions as necessary in the Ordinary Course of Business utilizing normal procedures and without discounting to prevent the abandonment, loss or accelerating payment impairment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the CompanyTransferred Intellectual Property;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) 7.2.1.8. comply in all material respects with all applicable Laws;;
(vii) 7.2.1.9. not grant or issue any shares or options to purchase shares or similar rights to any Employees, other than as specifically contemplated herein; or
7.2.1.10. not take steps any action with the intent to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent adversely affect the abandonment, loss or impairment of all Intellectual Property ability of the Companyparties to consummate the transactions contemplated by this Agreement.
(b) Without limiting 7.2.2. The Sellers agree that, from and after the generality date hereof and until the earlier of the foregoingClosing Date and the termination of this Agreement, except as otherwise expressly provided by this Agreement or with the prior written consent of Newcothe Parent, which shall not be unreasonably withheld (if any of the actions below is required under Law or a Purchased Contract in effect on the date hereof, the Company Sellers will be obligated to notify the Parent of such action and an approval will not be required), Sellers shall not:
(i) 7.2.2.1. hire any new Employee to serve in the Business or, except as required or allowed under this Agreement, terminate any Employee, or, except as may be required pursuant to any applicable Law, or agreement with such Employee which is specified in the Disclosure Schedules, (A) increase the salary or other level of compensation of or pay any director or bonus to, any Continuing Employee other than pursuant to the terms of engagement existing as of the Company except for normal year-end increases date hereof and set forth in the Ordinary Course of Businessdisclosure schedules, with such Continuing Employee, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement Plan made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company Continuing Employees or otherwise modify or amend or terminate any such plan Plan, except with respect to Employees that do not become Continuing Employees, or arrangement (DC) enter into grant any employment, deferred compensation, stay bonusEmployee or other person any change of control, severance, special payretention or termination compensation or benefits, consultingor any increase therein;
7.2.2.2. voluntarily subject the Purchased Assets to any Lien or otherwise encumber or permit or allow to be encumbered, non-competition or similar agreement or arrangement with any directors or officers of the Company Purchased Assets (whether tangible or amend intangible), except under any such agreement) to which applicable Law and other than in accordance with the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests provisions of the Company;
(ii) (A) create, incur, assume, guarantee, endorse Purchased Contract or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness Assumed Liability related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred Purchased Asset;
7.2.2.3. other than in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets in connection with the Business in an amount exceeding $15,000 individually, or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the CompanyAssets;
(v) except as provided in Section 6.6 hereof7.2.2.4. modify, enter into renew, terminate or agree elect not to renew any Purchased Contract or enter into any merger Contract related to the Business or consolidation with any Person, and not engage in any new business or invest in, make which would be deemed a loan, advance or capital contribution to, or otherwise acquire the securities of any PersonPurchased Contract hereunder;
(vi) 7.2.2.5. cancel or compromise any debt or claim, claim or waive or release any material right of the Company except Sellers in respect of the Ordinary Course of Purchased Assets;
7.2.2.6. enter into any commitment for capital expenditures relating to the Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) 7.2.2.7. introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, services or make any material change in product specifications or prices or terms of distributions of such productsspecifications;
(ix) 7.2.2.8. enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaserthe Purchasers, to compete with or conduct any business or line of business related to the Business in any geographic area or solicit the employment of any personsarea;
(xi) 7.2.2.9. terminate, amendmodify, renew, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease Purchased Contract or Purchased Intellectual Property License, other than License or (B) Permit (except as required by Law);
7.2.2.10. disclose any information not customarily disclosed in the Ordinary Course of Business to any person concerning the Business, and the Sellers' technologies or properties or afford to any person or entity including, but not limited to, financing parties, access to its properties, books or records;
7.2.2.11. declare, set aside, or distribute any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to any of the capital stock (or other equity securities) of the Sellers;
(A) accelerate or delay collection of Purchased Accounts Receivable in advance of or beyond their regular due dates or the dates when the same would have been collected in the Ordinary Course of Business; (B) Permitdelay or accelerate payment of any account payable in advance of its due date or the date such liability would have been paid in the Ordinary Course of Business; (C) delay or postpone the repair or maintenance of their properties related to the Business; or (D) vary any inventory purchase practices in any material respect from past practices;
(xii) settle 7.2.2.13. write up, write down or compromise write off the book value of any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that couldPurchase Assets, individually or in the aggregate, reasonably be expected to be greater than $50,000except for depreciation and amortization in accordance with GAAP consistently applied;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) 7.2.2.14. agree to do anything (A) prohibited by this Section 6.2, 7.2 (B) that would make including providing any promises or assurances with respect to any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyforegoing).
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (w) as set forth on Schedule 5.1(a) and Schedule 5.1(b) of the Seller Disclosure Schedule, (x) as required by Applicable Law or any Contract in existence as of the date of this Agreement, (y) as otherwise expressly provided contemplated by this Agreement (including with respect to the Reorganization) or (z) with the prior written consent of NewcoBuyer (which consent will not be unreasonably withheld, between the date hereof delayed or conditioned), Seller will, and the Closing, will cause the Company shall:
to, (i) conduct the Business only in the Ordinary Course of Business;
ordinary course and (ii) use its commercially reasonable efforts to preserve the present (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceBusiness, and (B) insurance upon all relationships with customers and suppliers of the assets Business.
(b) Prior to the Closing, except (w) as set forth on Schedule 5.1(a) and properties Schedule 5.1(b) of the Company Seller Disclosure Schedule, (x) as required by Applicable Law or any Contract in such amounts and existence as of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (By) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided contemplated by this Agreement (including with respect to the Reorganization) or (z) with the prior written consent of NewcoBuyer (which consent will not be unreasonably withheld, delayed or conditioned), Seller will not, and will not permit the Company shall notto:
(i) other than in the ordinary course consistent with past practices, as required by any Benefit Plan or in connection with a promotion or offer of employment, (A) materially increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessEmployee, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directorCompany Employee, (C) adopt, or increase the coverage or benefits available under under, any (Benefit Plan or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the with any Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyEmployee;
(ii) (A) createsubject any of the assets of the Company or the Quota to any Lien, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the for Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonLiens;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or leasehold rights in material properties or assets that would be assets of the Company or sell, assign, license, transfer, convey, lease or otherwise dispose of any a material portion of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) assets of the Company, except, in each case, (w) as set forth in Schedule 5.5 of the Seller Disclosure Schedule in relation to the CVC Equity Interest (x) pursuant SPI-900029917v22 35 to an existing Contract, (y) inventory in the ordinary course or (z) for the purpose of disposing of obsolete or worthless assets;
(iv) enter into any commitment for capital expenditures with respect to the Business in excess of €100,000 for any individual commitment and €300,000 for all commitments in the aggregate;
(v) except as provided in Section 6.6 hereofwith respect to the Business, enter into or agree to enter into any merger or consolidation with with, any other Person, and not engage invest in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) incur, cancel or compromise any debt material Indebtedness or claim, claim or waive or release any material right of the Company except Business, except, in each case, in the Ordinary Course ordinary course of Business;
(vii) enter intosettle or compromise any pending or threatened Litigation, modify in each case related to the Business, (A) in a manner that would result in restrictions on the conduct of the Business (other than the payment of monetary damages) or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee(B) for an amount greater than €100,000;
(viii) introduce other than in the ordinary course, engage in any material change Litigation seeking to recover monetary damages;
(ix) amend any of the organizational documents of the Company;
(x) issue, deliver, sell, dispose of, pledge or otherwise encumber, or authorize or propose the issuance, sale, disposition, pledge or other encumbrance of any additional equity interests, or any securities or rights convertible into, exchangeable for, or evidencing the right to subscribe for any equity interests, or any rights, warrants, options, calls, commitments or any other agreements of any character to purchase or acquire any equity interests, or any securities or rights convertible into, exchangeable for, or evidencing the right to subscribe for, any equity interests of the Company;
(xi) split, combine, subdivide or reclassify any equity interests of the Company;
(xii) adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of the Company or alter through merger, liquidation, reorganization or restructuring the corporate structure of the Company, other than in connection with the Reorganization;
(xiii) except as provided in Section 5.6, the Company shall not make any distributions or dividends to the Seller; or
(xiv) agree to do anything prohibited by this Section 5.1(b). SPI-900029917v22 36
(c) Notwithstanding anything herein to the contrary, Buyer acknowledges that from and after the date hereof until the Closing (i) the operation of the Business remains in the dominion and control of Seller and the Company and that none of the Related Parties of Buyer will provide, directly or indirectly, any directions, orders, advice, aid, assistance or information to any officer, employee or other representative of either Seller or the Company with respect to the operation of the Business, including any material change in the types, nature, composition except as specifically contemplated or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which permitted by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any as otherwise consented to in advance by an officer of Seller, and (ii) neither Seller nor the Company Documents untrue shall be restricted or incorrect otherwise prohibited from, and Seller and the Company shall be entitled to, pay to Seller in any material respect cash dividends or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect other distributions with respect to the CompanyQuota, and otherwise make cash payments to Seller in their capacities as such.
Appears in 1 contract
Samples: Quota Purchase Agreement (Circor International Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closingearlier of the Closing or the termination of this Agreement, Seller and the Company shall:
(i) conduct the Business respective businesses of the Company only in the Ordinary Course of BusinessBusiness in all material respects;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including clients, customers and supplierssuppliers and service providers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practicein their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) in all material respects (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line outside of creditthe Ordinary Course of Business, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)2010, including making such capital expenditures in the amounts and at the times set forth in such plan;, other than the capital expenditure to acquire a boat as previously approved by Purchaser; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement on Schedule 6.2(b) or with the prior written consent of NewcoPurchaser, Seller and the Company shall not:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of or other securities of, or other ownership interests in, the Company or repurchase, redeem or otherwise acquire any outstanding equity interests or other securities of, or other ownership interests in, the Company, other than dividends to Seller of amounts equal to (A) Cash in excess of $250,000 at on the Effective Date, and (B) the intercompany account receivable from Seller in order to settle that balance prior to Closing;
(ii) transfer, issue, sell, pledge, encumber or dispose of the equity interests or other securities of, or other ownership interests in, the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests or other securities of, or other ownership interests in, the Company;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of the Company, or amend the terms of any outstanding securities of the Company;
(iv) amend the certificate of incorporation or bylaws of the Company;
(v) (A) increase the salary or other compensation of any director director, manager, officer or Employee of the Company Employee, except for normal year-end increases in the Ordinary Course of Business, Business (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any director, officer, Employee or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, managers, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors directors, managers or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(iivi) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by of the Company; or (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of, or used by, the Company;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except material properties or assets of, or used by, the Company, other than for fair consideration in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company except in the Ordinary Course of Business;
(viixi) enter into any commitment for capital expenditures of the Company in excess of $10,000 for any individual commitment and $50,000 for all commitments in the aggregate, other than the capital expenditure to acquire a boat as previously approved by Purchaser;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of the Company or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employeethe Company;
(viiixiii) introduce any material change with respect to the operation of the BusinessCompany, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsproducts or change its pricing, discount, allowance or return policies or grant any pricing, discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ixxiv) enter into any transaction or enter into, modify or renew any Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of Business;
(xxv) except for transfers of Cash pursuant to normal cash management practices in the Ordinary Course of Business, make any investments in or loans to, or pay any fees or expenses to, or enter into or modify any Contract with any Related Persons;
(xvi) make a change in its accounting or Tax reporting principles, methods or policies;
(i) make, change or revoke any Tax election, settle or compromise any Tax claim or Liability or enter into a settlement or compromise, or change (or make a request to any Taxing Authority to change) any material aspect of its method of accounting for Tax purposes, or (ii) prepare or file any Tax Return (or any amendment thereof) unless Seller has complied with Section 8.5;
(xviii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, Company to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixix) terminate, amend, restate, supplement supplement, abandon or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xiixx) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiiixxi) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xivxxii) take any action which would materially and adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxiii) agree to do anything (A) prohibited by this Section 6.2, (B) that which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Seller Documents or Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect with respect Effect; and
(xxiv) fail to the Companypay any required maintenance or other similar fees or otherwise fail to make required filings or payments required to maintain and further prosecute any applications for registration of Intellectual Property.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Powersecure International, Inc.)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as otherwise expressly provided by this Agreement set forth on Schedule 7.2(a), or (ii) with the prior written consent of Newco, between the date hereof and the ClosingAcquiror, the Company and each of its Subsidiaries shall:
(iA) conduct the Business respective businesses only in the Ordinary Course of Business, except for the acquisition of Interest B as contemplated under Section 7.9, and in such a manner that conserves and uses the financial resources and human resources of Company and each of its Subsidiaries solely to manage their existing business operations and as necessary or appropriate to consummate the transactions contemplated by this Agreement;
(iiB) use its commercially reasonable efforts to maintain working capital of the Company at levels consistent with past practice;
(AC) pay its debts and Taxes when due and properly withhold all Taxes (such as withholding of Taxes from Employees or Former Employees); and
(D) use its commercially reasonable efforts to preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and each of its Subsidiaries.
(b) Except (i) as set forth on Schedule 7.2(b) or (ii) with the prior written consent of Acquiror, the Company and each of its Subsidiaries shall not:
(A) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(B) preserve issue or sell any shares of capital stock or other securities of the present relationships with Persons having business dealings with Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company (including customers except for 100,000 shares of Common Stock to be issued to Xxxxxx Connachie and suppliers100,000 shares of Common Stock to be issued to Xxxxx Herald, which shares are reflected as being terminated on the Company Disclosure Schedule prior to Closing, but in fact shall be issued prior to Closing);
(iiiC) maintain (A) all effect any recapitalization, reclassification or like change in the capitalization of the assets and properties ofCompany, or used by, except to the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementextent required by Law;
(ivD) (A) maintain amend the books, accounts and records articles of incorporation or by-laws or comparable organizational documents of the Company in the Ordinary Course of Business, Company;
(BE) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet than in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts as required by Law or Liabilities utilizing all available cash and any available line of creditContract, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A1) increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessEmployee, (B2) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directorEmployee, (C3) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Employee Plan or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D4) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition competition, retention or similar agreement or arrangement with any directors or officers of the Company Employee, (or amend any such agreement) to which the Company is a party; party or (E) pay or make involving any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) Employee except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivF) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets of the Company or any of its Subsidiaries (except pursuant to an existing Contract for fair consideration in the Ordinary Course of Business) , for the purpose of disposing of obsolete or worthless assets or the Companyacquisition of Interest B in accordance with Section 7.9);
(vG) except as provided other than in Section 6.6 hereofthe Ordinary Course of Business, cancel or compromise any material debt or claim or waive or release any material right of the Company or any of its Subsidiaries;
(H) enter into, modify, extend or terminate any labor or collective bargaining agreement;
(I) enter into or agree to enter into any merger or consolidation with any other Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise agreement to acquire the securities of any other Person;
(viJ) cancel incur any Indebtedness for borrowed money or compromise issue any debt securities or claimassume, guarantee or endorse, or waive otherwise as an accommodation become responsible for, the obligations of any person, or release make any material right of the Company except in the Ordinary Course of Businessloans or advances, or enter into any Hedging Arrangements;
(viiK) enter into, modify except to the extent required by Law or terminate any labor or collective bargaining agreement or, through negotiation or otherwiseGAAP, make any commitment or incur any Liability material change to any labor organization with respect to any Employeeof its methods of accounting or methods of reporting revenue and expenses or accounting practices;
(viiiL) introduce make any material change with respect to the operation of the Business, including any material change new capital expenditures exceeding $50,000.00 in the types, nature, composition or quality of products or services, or, aggregate (other than the acquisition of Interest B in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsaccordance with Section 7.9);
(ixM) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business enter into, modify, amend or (B) Permitterminate any Material Contract;
(xiiN) (1) make, revoke or change any material Tax election or (2) settle or compromise any pending material federal, state, local or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000foreign income Tax liability;
(xiiiO) change participate or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past dueengage in any transaction that constitutes a “reportable transaction” as such term is defined in Treasury Regulation Section 1.6011 -4(b)(1) or fail to pay or delay payment of payables or other liabilitiesany transaction that constitutes a “listed transaction” as such term is defined in Treasury Regulation Section 1.6011 -4(b)(2);
(xivP) take make any action which would adversely affect principal payments to the ability holder of the parties to consummate the transactions contemplated by this Agreementthat certain 6% Exchangeable Secured Subordinated Debenture of 1212500 Alberta Ltd. due April 25, 2008;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviiQ) agree to do anything (A) prohibited by this Section 6.2, 7.2(b); or
(BR) take any action that would make any of the representations representation and warranties warranty of the Company in this Agreement or any of the Company Documents untrue or incorrect hereunder inaccurate in any material respect at, or could result as of any time prior to, the Effective Time or omit to take any action necessary to prevent any such representation or warranty from being inaccurate in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyat any such time.
Appears in 1 contract
Samples: Agreement and Plan of Merger (Battle Mountain Gold Exploration Corp.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Seller shall, and shall cause the Company shallto:
(i) conduct Conduct the Business only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the Memorandum and Articles of Association of the Company;
(v) (A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Company to enter into any transaction or to make or enter into any contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany contract with, collection the Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;the Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyClosing.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except From the date hereof and until the Closing (the “Pre-Closing Period”), except (A) as set forth on Schedule 7.2(a), (B) as required by applicable Law, including Applicable Competition Laws, (C) as otherwise expressly provided contemplated by this Agreement or (D) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between delayed or conditioned):
(i) Sellers shall cause each of the date hereof and the Closing, the Company shallAcquired Companies to:
(iA) conduct the Business only in the Ordinary Course of Business;
(iiB) use its commercially reasonable efforts to preserve its current operations, organization and goodwill, including its Intellectual Property and current relationships with customers, suppliers and key employees (it being understood that such efforts will not include any requirement or obligation to pay any consideration not otherwise required to be paid by the terms of an existing Contract or to offer or grant any financial accommodation or other benefit not otherwise required to be made by the terms of an existing Contract); and
(C) use its commercially reasonable efforts to implement (I) the capital projects listed on Schedule 7.2(a)(i)(C) substantially in accordance with the quarterly capital expenditure forecast set forth on such Schedule 7.2(a)(i)(C), subject to such changes and delays that ordinarily arise in connection with projects of such nature and (II) following the first calendar quarter of 2019, capital projects in the Ordinary Course of Business, which, with respect to “EHS” and “Sustaining”, would normally be expected to require annual capital expenditures of approximately $1,000,000 in the aggregate; and
(ii) Sellers shall cause each of the Acquired Companies not to:
(A) preserve the present business operationsdeclare, organization set aside, make or pay any dividend or other distribution (including officers and Employeesother than cash) and goodwill in respect of the Company and Acquired Companies Equity Interests or repurchase, redeem or otherwise acquire any outstanding Equity Securities in any Acquired Company;
(B) preserve the present relationships with Persons having business dealings with the issue or sell any Equity Securities of any Acquired Company (including customers and suppliers)or grant options, warrants, calls or other rights to purchase or otherwise acquire any Equity Securities of any Acquired Company;
(iiiC) maintain (A) all effect any recapitalization, reclassification or like change in the capitalization of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementany Acquired Company;
(ivD) amend the Organizational Documents of any Acquired Company;
(E) (A) maintain make any change (or file any such change) in any method of Tax accounting, (B) make, change or rescind any Tax election; (C) settle or compromise any Tax liability or consent to any claim or assessment relating to Taxes; (D) file any amended Tax Return or claim for refund; (E) enter into any closing or similar agreement with a Tax Authority; or (F) waive or extend the booksstatute of limitations in respect of Taxes, accounts and records but in each case, if such action relates to a Tax group which includes the Acquired Companies, then the Acquired Companies shall be restricted only to the extent reasonably expected to increase the Tax Liability of Purchaser or its Affiliates (including the Acquired Companies) for a Tax period (or portion thereof) that begins after the Closing Date;
(F) (I) increase the annual level of compensation of any employee of any Acquired Company other than in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (BII) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directoremployee of any Acquired Company, (CIII) materially increase the coverage or benefits available under any (or create any new) severance payCompany Benefit Plan, termination pay(IV) enter into any agreements or commitments (or amend any such agreements or commitments) of the type that would be required to be disclosed on Schedules 5.14(a), vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus 5.14(b) or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for5.14(c) if they were in effect as of the date hereof, or with any (V) other than in the Ordinary Course of the directorsBusiness, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition consulting or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the any Acquired Company is a party; , except, in each case, as required by applicable Law or (E) pay or make the terms of any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyCompany Benefit Plan;
(iiG) (AI) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect other than as may be necessary to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except fill vacant positions in the Ordinary Course of Business, payhire or offer to hire any new employee, prepay(II) other than for cause, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by terminate the Company; (C) materially modify the terms employment of any Indebtedness or other Liability; employee, or (DIII) make institute any loans, advances general layoff of capital contributions to, employees or investments in, implement any other Personearly retirement plan or announce the planning of any such action;
(iiiH) subject any of the properties or assets (whether tangible or intangible) of any Acquired Company to any Lien or otherwise encumber orLien, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(ivI) (I) other than in the Ordinary Course of Business, acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets properties or assets of any Acquired Company or (except for fair consideration II) acquire any ownership interest in the Ordinary Course of Business) of the Companyreal property;
(vJ) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make cancel or compromise any change in product specifications material claim or prices or terms right of distributions of such productsany Acquired Company;
(ixK) enter into any transaction commitment for capital expenditures of any Acquired Company in excess of €1,000,000 for all commitments in the aggregate, other than reasonable capital expenditures in connection with any emergency or enter into, modify or renew any Contract which by reason of its size or otherwise is not force majeure events affecting such Acquired Company;
(L) other than in the Ordinary Course of Business;
, (xI) enter into modify or terminate any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property LicenseMaterial Contract or (II) enter into, modify or terminate any Contract that if in effect on the date of this Agreement would have been required to be listed on Schedule 5.9(a), Schedule 5.10(b) or Schedule 5.12(a);
(M) permit any Acquired Company to enter into or agree to enter into any merger, consolidation, joint venture or similar business combination transaction with any Person, or acquire the Equity Securities of any other Person;
(N) other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise permit the creation of any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementnew Company Guarantee; or
(xviiO) agree to do anything (A) prohibited by this Section 6.27.2(a)(ii).
(b) During the Pre-Closing Period:
(i) at the request of Purchaser delivered reasonably in advance of the Closing (or, if later, in the case of clause (B), delivered within reasonable time of any notification of Purchaser contemplated therein), Sellers shall, and shall cause their respective Affiliates (including the Acquired Companies) to, use commercially reasonable efforts to cause the assignment to the German Company, before or effective as of the Closing, of (A) any Contract listed under “Potential Assignment of Contracts” on Schedule 7.2(b) or (B) any other Contract that would make may be identified after the date hereof to which any of them, but not an Acquired Company, is a party and which is used solely in the representations and warranties conduct of the Business (excluding, for the avoidance of doubt, any Contract related to (I) items identified on Schedule 5.18(b) as not being available for use by the Business after the Closing or (II) Intellectual Property owned by GP Nonwovens or its Affiliates immediately after Closing and not licensed or obligated to be assigned to an Acquired Company under an IP Agreement);
(ii) at the request of Purchaser delivered reasonably in advance of the Closing (or, if later, in the case of clause (B), delivered within reasonable time of any notification of Purchaser contemplated therein), Sellers shall, and shall cause their respective Affiliates (including the Acquired Companies) to, use commercially reasonable efforts to cause the German Company to, before or effective as of the Closing, enter into a standalone Contract substantially comparable to (A) any Contract listed under “Potential Entry of Standalone Contracts” on Schedule 7.2(b) or (B) any other Contract that may be identified after the date hereof to which any of them, but not an Acquired Company, is a party and which is used in the conduct of the Business and other businesses of Sellers and their respective Affiliates (other than the Acquired Companies) (excluding, for the avoidance of doubt, any Contract related to (I) items identified on Schedule 5.18(b) as not being available for use by the Business after the Closing or (II) Intellectual Property owned by GP Nonwovens or its Affiliates immediately after Closing and not licensed or obligated to be assigned to an Acquired Company under an IP Agreement); and
(iii) Sellers shall, and shall cause their respective Affiliates (including the Acquired Companies) to, use commercially reasonable efforts to cause the German Company to, before or effective as of the Closing, be removed as a party to and, at the request of Purchaser delivered reasonably in advance of the Closing, enter into a standalone Contract substantially comparable to (A) any Contract listed under “Separation of Contracts” on Schedule 7.2(b) or (B) any other Contract that may be identified after the date hereof to which any of them (other than an Acquired Company) and an Acquired Company, are parties and which is used in the conduct of the Business and the other businesses of Sellers and their respective Affiliates (with respect to entry into a standalone Contract, excluding, for the avoidance of doubt, any Contract related to (I) items identified on Schedule 5.18(b) as not being available for use by the Business after the Closing or (II) Intellectual Property owned by GP Nonwovens or its Affiliates immediately after Closing and not licensed or obligated to be assigned to an Acquired Company under an IP Agreement).
(c) Prior to the Closing, (i) Buckeye Germany shall enter into the Copyright Assignment Agreement with the German Company in exchange for a payment by the German Company of cash or a cash receivable in an amount equal to the Estimated Buckeye Germany IP Value and (ii) GP Nonwovens shall enter into the GP Nonwovens IP Agreements with the German Company in exchange for a payment by the German Company of cash or a cash receivable in an amount equal to the Estimated GP Nonwovens IP Value, in each case, which amount shall be subject to adjustment post-Closing (the “IP Value Adjustment”). At the Closing, the German Company shall be deemed to have assigned its rights and obligations under the IP Value Adjustment to Buckeye Germany.
(d) Nothing contained in this Section 7.2 or elsewhere in this Agreement is intended to give Purchaser, directly or indirectly, the right to control or direct the Business or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions portion thereof prior to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect Closing. Prior to the CompanyClosing, the Acquired Companies shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over the Business.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoBuyer, Seller covenants and agrees that, between the date hereof and the ClosingClosing Date, Seller shall operate the Company Business in the ordinary course in a manner consistent with past practice, and shall confer with Buyer and its representatives, as reasonably requested, to report on operational matters and the general status of ongoing operations. Notwithstanding the generality of the foregoing, Seller shall, between the date hereof and the Closing Date, except as otherwise expressly required by this Agreement or by Applicable Laws or except with the prior written consent of Buyer, not to be unreasonably withheld or delayed:
(i) conduct the Business only in the Ordinary Course of Businesspay all non-terminated Seller employees consistent with ordinary course and past practice;
(ii) use its commercially reasonable efforts to conduct the Business in compliance with all Applicable Laws (A) preserve except for those Laws whose effect is waived or suspended by the present business operations, organization (including officers and Employees) and goodwill application of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliersBankruptcy Code);
(iii) maintain (A) all of the assets use commercially reasonable efforts to preserve Seller’s relationships with its current equity holders, customers, distributors, suppliers, vendors and properties of, or used by, the Company consistent others having business dealings with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this AgreementSeller;
(iv) (A) maintain the booksits physical assets, accounts properties and records Facilities in their current working order, condition and repair as of the Company in the Ordinary Course of Businessdate hereof, (B) continue to collect accounts receivable ordinary wear and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Companytear excepted;
(v) comply with not take any action, or omit to take any action, the capital expenditure plan intent of which is to cause the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plantermination of its current officers or key employees;
(vi) comply in perform all material respects with all applicable Lawsobligations required to be performed by Seller under the Assumed Contracts;
(vii) take steps to renew all Permits bxxx for products sold or services rendered and pay accounts payable in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or consistent with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employeepast practice;
(viii) introduce not encumber nor enter into any material change with respect to new leases, licenses or other use or occupancy agreements for the operation of the Business, including Real Property or any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productspart thereof;
(ix) enter into any transaction grant Buyer reasonable access to Seller’s customers, distributors, landlords, suppliers and vendors and cooperate with Buyer in communicating with such Persons, provided that the Company shall have the opportunity to have a representative of the Company present (in person or enter intoby telephone, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Businessas applicable);
(x) enter into not (a) create any Contractadditional Seller Benefit Plan, understanding (b) modify or commitment that restrainschange any existing Seller Benefit Plan, restricts(c) establish or increase any compensation or benefits payable or to become payable to any employee, limits consultant, director or impedes the ability other service provider of the BusinessCompany or its Affiliates; (d) hire, engage or terminate any employee, consultant, director or other service provider; or (e) establish, adopt, enter into, amend or terminate any Seller Benefit Plan. For the ability avoidance of Newco doubt, Seller shall not pay any bonuses or Purchaserincentive plan payments to any Person without the consent of Buyer and approval of the Court, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsas required;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than maintain all insurance policies in full force and effect through the Ordinary Course close of Business or (B) Permitbusiness on the Closing Date;
(xii) refrain from instituting, settling or agreeing to settle or compromise any pending or threatened Legal Proceeding or material proceeding before any claim or claims forGovernmental Entity relating to the Assets, or modify in any manner that would result in is adverse to the Business or the Assets, rescind or terminate a loss of revenue of, an amount that could, individually Permit (or in application therefor) relating to the aggregate, reasonably be expected to be greater than $50,000Assets;
(xiii) change refrain from modifying any existing rights under, or modify its creditenter into any settlement regarding the breach, collection infringement, misappropriation or payment policiesdilution of, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any material Intellectual Property; and
(xiv) take not enter into any action which would adversely affect the ability of the parties agreement with any labor union or labor organization, including but not limited to consummate the transactions contemplated any collective bargaining agreement, except as required by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyLaw.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except Subject to the terms and conditions of the Interim Agreement, during the period from the date hereof through and including the Closing, except (i) as otherwise expressly set forth in Section provided by in this Agreement Agreement, or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof and the Closingdelayed or conditioned), the Company shallSeller shall use commercially reasonable efforts to:
(iA) conduct operate the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iiiI) maintain (A) all of the assets and properties of, or used by, the Company Purchased Assets consistent with past practice, ordinary wear and tear excepted and (BII) maintain commercially reasonable insurance upon all of coverage in place with respect to the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this AgreementPurchased Assets;
(ivC) perform when due all material obligations under the Assigned Contracts, the Purchased Intellectual Property Licenses, the Purchased Real Property Leases and the Purchased Personal Property Leases except to the extent such performance is excused under the Bankruptcy Code or by order of the Bankruptcy Court;
(AD) maintain the books, accounts books and records of the Company Business in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(vE) comply with maintain the capital expenditure plan of Permits applicable to the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapseBusiness; and
(viiiF) retain staff employed in the Business with the goal of maintaining the ongoing operation thereof. In connection with such efforts, however, Seller will not be obligated to make any retention or severance payments or pay all maintenance and similar fees and take all any other appropriate actions as necessary to prevent the abandonment, loss amounts or impairment of all Intellectual Property of the Companyincur any other obligations.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by from the date of this Agreement or with through and including the prior written consent of NewcoClosing, the Company Seller shall not:
, except (i) as set forth in Section
(A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases than in the Ordinary Course of Business, including, but not limited to, as may be required by a collective bargaining agreement, (BI) materially increase the annual level of compensation of any Employee, (II) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee Employee, or director(III) with respect to any Employee, (C) increase the coverage or benefits available under any (or create any new) severance payPlan except, termination payin each case, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus as required by applicable Law from time to time in effect or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with by any of the directors, officers, Employees, agents Plans or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyEmployee pension plans maintained by Seller;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree pursuant to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any an existing Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle for the purpose of disposing of obsolete or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementworthless assets); or
(xviiC) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company8.2.
Appears in 1 contract
Samples: Asset Purchase Agreement
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoBuyer, between the date hereof and the Closing, the Company shallSeller shall and Parent shall cause Seller to:
(i) conduct the Business only in the Ordinary Course ordinary course of Businessbusiness;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employeesemployees) and goodwill of the Company Seller and (B) preserve the present relationships with Persons persons having business dealings with the Company Seller (including customers and suppliers);
(iii) except for the sales of assets in the ordinary course of Seller’s business, maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceSeller in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the assets and properties of the Company Seller in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Seller in the Ordinary Course ordinary course of Businessbusiness, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the CompanySeller;
(v) comply with the capital expenditure plan of Seller for the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)current fiscal year, including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of Property; and
(viii) cause B&B Roadway to comply with the Companycovenants in clauses (i) through (vii) with reference to B&B Roadway.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoBuyer, the Company Seller shall notnot and Parent shall not permit Seller to:
(i) (A) increase the salary or other compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessSeller, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan Employee Benefit Plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company Seller or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company Seller (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company);
(ii) make, change or revoke any material Tax election, settle or compromise any material Tax claim or liability or enter into a settlement or compromise, or change (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect make a request to (whether directly, contingently or otherwiseany taxing authority to change) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course material aspect of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course its method of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;accounting for Tax purposes,
(iii) subject to any Lien or otherwise encumber or, except for Permitted ExceptionsLiens, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of Seller or its subsidiaries;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Acquired Assets (except for fair consideration in the Ordinary Course ordinary course of Business) of the Companybusiness);
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Personother person;
(vi) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Seller except in the Ordinary Course ordinary course of Businessbusiness;
(vii) enter into any commitment for capital expenditures in excess of $5,000 for any individual commitment and $10,000 for all commitments in the aggregate;
(viii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employeeemployee;
(viiiix) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course ordinary course of Businessbusiness, make any change in product specifications or prices or terms of distributions of such products;
(ixx) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course ordinary course of Businessbusiness;
(xxi) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or PurchaserBuyer, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixii) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Assumed Contract or Real Property Lease, Personal Property Lease (or Intellectual Property License, other than in the Ordinary Course of Business enter into a new lease) or (B) Permit;
(xiixiii) settle or compromise any pending or threatened Legal Proceeding legal proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,0005,000;
(xiiixiv) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixv) agree to do anything (A) prohibited by this Section 6.24.1, (B) that which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffect.
Appears in 1 contract
Samples: Asset Purchase Agreement (Integrated Security Systems Inc)
Conduct of the Business Pending the Closing. Except (aA) Except as set forth on Section 6.2 of the Disclosure Schedules, (B) as required by applicable Law, (C) as otherwise expressly provided contemplated by this Agreement Agreement, (D) for the transfer of cash from the Company to the Sellers, or (E) with the prior written consent of Newcothe Purchaser (which consent may be withheld, between delayed or conditioned):
(a) the Company shall, from the date hereof and prior to the Closing, the Company shallClosing Date:
(i) conduct the Business only its respective businesses in the Ordinary Course of BusinessBusiness including the maintenance of all records;
(ii) use its commercially reasonable best efforts to (A) preserve the present business operations, organization (including officers and Employees) operations and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)its business;
(iii) maintain (A) all confer with the Purchaser prior to implementing operation decisions of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementa material nature;
(iv) (A) maintain report to the books, accounts and records of Purchaser at such times as the Company in Purchaser may reasonably request concerning the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations status of the Company;
(v) comply maintain the assets owned or used by the Company in a state of repair and conditions that complies with the capital expenditure plan Company’s Contracts and is consistent with the requirements and normal conduct of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such planCompany;
(vi) comply in all material respects with all applicable LawsContracts of the Company;
(vii) take steps to renew continue in full force and effect all Permits in a timely manner prior to their lapseinsurance coverage of the Company; and
(viii) pay all maintenance and similar fees and take all other appropriate actions no action, or fail to take any reasonable action within its control, as necessary to prevent the abandonment, loss or impairment a result of all Intellectual Property which any of the Companychanges or events listed in Section 4.9 would be likely to occur.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not, from the date hereof prior to the Closing Date:
(i) amend any of its organizational documents;
(Aii) increase the salary declare, set aside or pay any dividend or make any other distribution in respect of any membership interests (or other compensation of any director or Employee equity interest) of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany;
(iii) repurchase, redeem or acquire any outstanding membership interests (B) grant any bonus, benefit or other direct equity interest) or indirect compensation other securities of, or other ownership interest in, the Company;
(iv) award or pay any bonuses to any Business Employee (as defined in Section 4.11(b)) or directorany Physician (as defined in Section 4.11(a)), other than as set forth on the Disclosure Schedule;
(C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (Dv) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition severance or similar agreement or arrangement with any directors or officers of the Company (or amend nor amended any such agreement) or agree to which increase the Company is a party; compensation payable or (E) pay or make to become payable by it to any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company’s directors, managers, officers, employees, agents or representatives or agree to increase the coverage or benefits available under the Company Benefit Plan (as defined in Section 4.12(a));
(iivi) change its accounting or Tax reporting principles, methods or policies;
(Avii) createmake or rescind any election relating to Taxes, incur, assume, guarantee, endorse settled or otherwise become liable or responsible with respect compromised any claim relating to Taxes;
(whether directly, contingently or otherwiseviii) any Indebtedness fail to promptly pay and discharge current Liabilities except where disputed in good faith by appropriate proceedings;
(u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (Dix) make any loans, advances of or capital contributions to, or investments in, any other Person;
(iii) subject Person or paid any fees or expenses to any Lien director, manager, officer, partner, member or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of BusinessAffiliate;
(x) enter into mortgage, pledge or subject to any ContractLien any of its assets, understanding properties or commitment that restrains, restricts, limits or impedes the ability of rights relating to the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement enter into or waive amend any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle make or compromise commit to make any pending or threatened Legal Proceeding or any claim or claims for, or that would result capital expenditures in a loss excess of revenue of, an amount that could, $10,000 individually or $15,000 in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change issue, create, incur, assume or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesguarantee any Indebtedness;
(xiv) take suffer any action which would adversely affect material change in the ability productivity or compensation of the parties to consummate the transactions contemplated by this AgreementPhysicians;
(xv) amend institute or settle any Legal Proceeding without the operating agreement of the Company;Purchaser’s written consent; or
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan agree, commit, arrange or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree enter into any agreement to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyforegoing.
Appears in 1 contract
Samples: Membership Interest Purchase Agreement (Apollo Medical Holdings, Inc.)
Conduct of the Business Pending the Closing. Except (aA) Except as set forth on Section 6.2 of the Disclosure Schedules, (B) as required by applicable Law, (C) as otherwise expressly provided contemplated by this Agreement Agreement, (D) for the transfer of cash from the Company to the Seller, or (E) with the prior written consent of Newcothe Purchaser (which consent may be withheld, between delayed or conditioned):
(a) the Company shall, from the date hereof and prior to the Closing, the Company shallClosing Date:
(i) conduct the Business only its respective businesses in the Ordinary Course of BusinessBusiness including the maintenance of all records;
(ii) use its commercially reasonable best efforts to (A) preserve the present business operations, organization (including officers and Employees) operations and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)its business;
(iii) maintain (A) all confer with the Purchaser prior to implementing operation decisions of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementa material nature;
(iv) (A) maintain report to the books, accounts and records of Purchaser at such times as the Company in Purchaser may reasonably request concerning the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations status of the Company;
(v) comply maintain the assets owned or used by the Company in a state of repair and conditions that complies with the capital expenditure plan Company’s Contracts and is consistent with the requirements and normal conduct of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such planCompany;
(vi) comply in all material respects with all applicable LawsContracts of the Company;
(vii) take steps to renew continue in full force and effect all Permits in a timely manner prior to their lapseinsurance coverage of the Company; and
(viii) pay all maintenance and similar fees and take all other appropriate actions no action, or fail to take any reasonable action within its control, as necessary to prevent the abandonment, loss or impairment a result of all Intellectual Property which any of the Companychanges or events listed in Section 4.9 would be likely to occur.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not, from the date hereof prior to the Closing Date:
(i) amend any of its organizational documents;
(Aii) increase the salary declare, set aside or pay any dividend or make any other distribution in respect of any shares of capital stock (or other compensation of any director or Employee equity interest) of the Company except for normal year-end increases in the Ordinary Course Company;
(iii) repurchase, redeem or acquire any outstanding shares of Business, capital stock (B) grant any bonus, benefit or other direct equity interest) or indirect compensation other securities of, or other ownership interest in, the Company;
(iv) award or pay any bonuses to any Business Employee (as defined in Section 4.11(b)) or directorany Physician (as defined in Section 4.11(a)), other than as set forth on the Disclosure Schedule;
(C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (Dv) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition severance or similar agreement or arrangement with any directors or officers of the Company (or amend nor amended any such agreement) or agree to which increase the Company is a party; compensation payable or (E) pay or make to become payable by it to any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company’s directors, officers, employees, agents or representatives or agree to increase the coverage or benefits available under the Company Benefit Plan (as defined in Section 4.12(a));
(iivi) change its accounting or Tax reporting principles, methods or policies;
(Avii) createmake or rescind any election relating to Taxes, incur, assume, guarantee, endorse settled or otherwise become liable or responsible with respect compromised any claim relating to Taxes;
(whether directly, contingently or otherwiseviii) any Indebtedness fail to promptly pay and discharge current Liabilities except where disputed in good faith by appropriate proceedings;
(u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (Dix) make any loans, advances of or capital contributions to, or investments in, any other Person;
(iii) subject Person or paid any fees or expenses to any Lien director, officer, partner, shareholder or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of BusinessAffiliate;
(x) enter into mortgage, pledge or subject to any ContractLien any of its assets, understanding properties or commitment that restrains, restricts, limits or impedes the ability of rights relating to the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement enter into or waive amend any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle make or compromise commit to make any pending or threatened Legal Proceeding or any claim or claims for, or that would result capital expenditures in a loss excess of revenue of, an amount that could, $10,000 individually or $15,000 in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change issue, create, incur, assume or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesguarantee any Indebtedness;
(xiv) take suffer any action which would adversely affect material change in the ability productivity or compensation of the parties to consummate the transactions contemplated by this AgreementPhysicians;
(xv) amend institute or settle any Legal Proceeding without the operating agreement of the Company;Purchaser’s written consent; or
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan agree, commit, arrange or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree enter into any agreement to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyforegoing.
Appears in 1 contract
Samples: Stock Purchase Agreement (Apollo Medical Holdings, Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, between Seller shall, and shall cause the date hereof and the Closing, the Company shallSubsidiaries to:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of Seller and the Company Subsidiaries as they relate to the Business or Purchased Assets and (B) preserve the maintain its present relationships with Persons having business dealings with Seller and the Company Subsidiaries (including customers including, without limitation, customers, suppliers, officers, employees, underwriters, agents, brokers, sales representatives, correspondents, landlords and suppliers)investors) with respect to the Business or the Purchased Assets;
(iii) maintain (A) all of the assets and properties ofof Seller and the Subsidiaries that relate to the conduct of the Business or the Purchased Assets in their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the assets and properties of Seller and the Company Subsidiaries that relate to the conduct of the Business or the Purchased Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of Seller and the Company Subsidiaries that relate to the conduct of the Business or the Purchased Assets in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on that relate to the Balance Sheet in conduct of the Ordinary Course of Business or the Purchased Assets utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply in all material respects with all contractual and other obligations of applicable to the Companyoperation the Business and the Purchased Assets;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable LawsLaws that relate to the conduct of the Business or the Purchased Assets;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viiivi) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Purchased Intellectual Property Property;
(vii) continue the existing credit collection control of delinquencies and other policies and practices relating to the conduct of the CompanyBusiness; and
(viii) not take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, the Company Seller shall not, and shall not permit the Subsidiaries to, with respect to the Business or the Purchased Assets:
(i) except as set forth in Section 5.12(x) of the Disclosure Memorandum, or as may be required by applicable Law, (A) increase the salary or other annual level of compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Businessan amount greater than $10,000, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee Employee, director or directorconsultant, or (C) increase the coverage or benefits with respect to any Employee available under any (Employee Benefit Plan or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companynew Employee Benefit Plan;
(ii) (A) create, incur, assume, guarantee, endorse make any loan or otherwise become liable or responsible with respect advance to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except Person other than in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) incur or assume any indebtedness other than in the Ordinary Course of Business;
(iv) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of Seller or any of the Subsidiaries;
(ivv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in of Seller and the Ordinary Course of Business) of the CompanySubsidiaries;
(vvi) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity except for any merger or consolidation that is not adverse to the rights and interests of Purchaser set forth in this Agreement, and that would not have any adverse effects on, the Business or the Purchased Assets or the ability of Seller and its Subsidiaries to consummate the transactions contemplated by this Agreement, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vivii) cancel or compromise any debt or claim, claim or waive or release any material right of Seller or any of the Company Subsidiaries;
(viii) except in the Ordinary Course of Business, deviate from or change in any respect the credit or underwriting policies or collateral eligibility standards of Seller or any Subsidiary;
(viiix) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixx) enter into any transaction or enter into, modify modify, amend, terminate or renew any Contract which by reason of its size size, terms or otherwise is not in the Ordinary Course of Business;
(xxi) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsarea;
(xixii) except as set forth in Section 7.2(b)(xii) of the Disclosure Memorandum, terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business License or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change enter into, modify or modify its credit, collection amend any agreement with any broker or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiescorrespondent;
(xiv) take amend the certificate of organization or incorporation or by-laws (or other similar governing documents) of Seller or any action which Subsidiary in a manner that would adversely affect impact the ability consummation of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementhereby; or
(xviixv) agree to do anything (A) prohibited by this Section 6.27.2, (B) that which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would reasonably be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffect.
Appears in 1 contract
Samples: Asset Purchase Agreement (New York Mortgage Trust Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct Conduct the Business respective businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companylaws.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, lien (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as set forth on Schedule 7.2(a) or otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closing, the Company U.S. Sellers shall:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and the Employees) and goodwill of the Company Business and (B) preserve the present relationships with Persons having business dealings with the Company U.S. Sellers (including customers customers, distributors and suppliers);
(iii) maintain (A) all of the assets and properties of, or used or held for use by, U.S. Sellers in the Company consistent with past practiceBusiness in its current condition, ordinary wear and tear excepted, and (B) insurance upon all of the assets and properties of the Company Purchased Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company U.S. Sellers in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay 50 accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditprocedures, and (C) comply with all material contractual and other material obligations of the CompanyU.S. Sellers;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement Agreement, Schedule 7.2(a) or with the prior written consent of NewcoPurchaser, between the Company date hereof and the Closing, U.S. Sellers shall not:
(i) except as disclosed in Schedule 7.2(b)(i), (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company U.S. Sellers or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company Employees (or amend any such agreement) to which the Company any U.S. Seller is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) other than with respect to borrowings under the current credit facility with RBS Citizens which can be increased, (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Companyany U.S. Seller; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) to the extent related to the Business or the Purchased Assets, (A) make, change or revoke any material Tax election, settle or compromise any material Tax claim or liability or enter into a settlement or compromise, or change (or make a request to any Taxing Authority to change) any material aspect of its method of accounting for Tax purposes, (B) prepare or file any Tax Return unless such Tax Return shall have been prepared in a manner consistent with past practice and Parent shall have provided Purchaser a copy thereof (together with supporting papers) at least three (3) Business Days prior to the due date thereof for Purchaser to review and approve (such approval not to be unreasonably withheld or delayed), or (C) file any amended Tax Return;
(iv) other than with respect to the current credit facility with RBS Cititzens, subject the Purchased Assets to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of any U.S. Seller;
(ivv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of any U.S. Seller, other than in the CompanyOrdinary Course of Business;
(vvi) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vivii) cancel or compromise any debt or claim, claim or waive or release any material right of the Company any U.S. Seller except in the Ordinary Course of Business;
(viiviii) enter into any commitment for capital expenditures in excess of $100,000 individually or $300,000 in the aggregate;
(ix) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viiix) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product service specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsservices;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business Business, or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,00010,000;
(xiii) materially change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend except to the operating agreement of the Companyextent consistent with past practice or as otherwise required by Law or GAAP, make any change in accounting or Tax reporting principles, methods or policies;
(xvi) agree amend the organizational documents of any U.S. Seller;
(xvii) cancel any deposits for current orders related to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course any capital expenditures of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementany U.S. Seller; or
(xviixviii) agree to do anything (A) prohibited by this Section 6.27.2, (B) that which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect Effect.
(c) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with respect the prior written consent of Purchaser, between the date hereof and the date of receipt of all of the Israeli Purchased Assets, Parent (i) shall not dispose of any of the Israeli Purchased Assets and (ii) shall maintain (A) each of the Israeli Purchased Assets in its current condition, ordinary wear and tear excepted, and (B) insurance upon all of the Israeli Purchased Assets in such amounts and of such kinds comparable to that in effect on the Companydate of this Agreement.
Appears in 1 contract
Samples: Asset Purchase Agreement (International Wire Group Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement or with the prior written consent of Newcothe Buyer, between the date hereof and the Closingdate on which the original copy of the amended business license of the Company (indicating that the Buyer is the sole shareholder of the Company) and all of the Company’s official chops, stamps and seals are handed over to the Buyer, the Sellers shall cause the Company shallto, and the Company shall cause the Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to preserve (A) preserve the present business operations, organization (including officers and Employeesemployees) and goodwill of the Company and the Subsidiaries and (B) preserve the present relationships with Persons having business dealings with the Company and the Subsidiaries (including customers (or end-users) and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceand the Subsidiaries in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company and the Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company and the Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing using normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the CompanyCompany and the Subsidiaries;
(v) comply with the capital expenditure plan of the Company and the Subsidiaries for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)as previously provided to Buyer, including making such capital expenditures in the amounts and at the times set forth in such plan;; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoBuyer, the Sellers shall cause Company not to, and the Company shall notcause the Subsidiaries not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the share capital of, or other equity interests or ownership interests in, the Company or any of the Subsidiaries or repurchase, redeem or otherwise acquire any outstanding share capital, equity interests or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(ii) transfer, issue, sell, pledge, encumber or dispose of any equity interests, share capital or other securities of, or other ownership interests in, the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests, share capital or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(iii) effect any recapitalization, reclassification, share split, combination or like change in the capitalization of the Company or any of the Subsidiaries, or amend the terms of any outstanding securities of the Company or any Subsidiary;
(iv) amend the articles of association or equivalent organizational or governing documents of the Company or any of the Subsidiaries;
(v) (A) increase the salary or other compensation of any director director, officer or Employee employee of the Company or any of the Subsidiaries, except for normal year-end increases in the Ordinary Course of Business, Business (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee director, officer, employee or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or any of the Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company or any Subsidiary (or amend any such agreement) agreement to which the Company or any of the Subsidiaries is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company);
(iivi) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued of the Company or guaranteed by any of the CompanySubsidiaries; or (C) materially modify the terms of any Indebtedness or other Liability; Liability of the Company or (D) make any loans, advances of capital contributions to, or investments in, any other PersonSubsidiary;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of, or used by, the Company or any of the Subsidiaries;
(ivviii) acquire any material properties or assets by the Company or any Subsidiary or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of, or used by, the Company and the Subsidiaries, other than in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation by the Company or any Subsidiary with any Personcorporation or other entity, and not or engage the Company or any Subsidiary in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any Personother Person by the Company or any Subsidiary;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company or any of the Subsidiaries except in the Ordinary Course of Business;
(viixi) enter into any commitment for capital expenditures of the Company and the Subsidiaries in excess of RMB200,000 for any individual commitment and RMB500,000 for all commitments in the aggregate;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of the Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company or any Employeeof the Subsidiaries;
(viiixiii) introduce any material change with respect to the operation of the BusinessCompany or any of the Subsidiaries, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsproducts or change its pricing, discount, allowance or return policies or grant any pricing, discount, allowance or return terms for any customer or supplier not in accordance with such policies;
(ixxiv) enter into any transaction by the Company or any Subsidiary or enter into, modify or renew any Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of BusinessBusiness of the Company or any Subsidiary;
(xxv) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, make any investments in or loans to, or pay any fees or expenses to, or enter into or modify any Contract with any Related Persons of the Company or any Subsidiary;
(xvi) make a change in its accounting or Tax reporting principles, methods or policies of the Company or any Subsidiary;
(xvii) (A) make, change or revoke any Tax election by the Company or any Subsidiary, settle or compromise any Tax claim or liability of the Company or any Subsidiary or enter into a settlement or compromise by the Company or any Subsidiary, or change (or make a request to any taxing authority to change) any material aspect of its method of accounting for Tax purposes by the Company or any Subsidiary, or (B) prepare or file any Tax Return (or any amendment thereof) by the Company or any Subsidiary unless such Tax Return shall have been prepared in a manner consistent with past practice and the Company shall have provided Buyer a copy thereof (together with supporting papers) at least three Business Days prior to the due date thereof for Buyer to review and approve (such approval not to be unreasonably withheld or delayed);
(xviii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, Company or the ability of Newco or Purchaser, any Subsidiary to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixix) terminate, amend, restate, supplement or waive any rights of the Company or any Subsidiary under any (A) Material Contract, Real Property LeaseCompany Property, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xiixx) settle or compromise any pending or threatened Legal Proceeding or any claim or claims by the Company or any Subsidiary for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000RMB 500,000;
(xiiixxi) change or modify its the credit, collection or payment policies, procedures or practicespractices of the Company or any Subsidiary, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xivxxii) take any action which that would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxiii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Seller Documents or Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect with respect Effect; and
(xxiv) make any decision that would cause or otherwise allow any rights in any Intellectual Property to be altered (except for Intellectual Property applications as such are processed in the CompanyOrdinary Course of Business), forfeited, lapsed, or revoked.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof and the Closing, Seller shall, and Seller shall cause the Company shallGroup Companies to:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and the other Group Companies and (B) preserve the present relationships with Persons having business dealings with the Company and the other Group Companies (including customers and suppliers);
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practiceand the other Group Companies in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the assets and properties of of, or used by, the Company and the other Group Companies in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company and the other Group Companies in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the CompanyCompany and the other Group Companies;
(v) comply with the capital expenditure plan of the Company and the other Group Companies for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)2007, including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;; and
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all filing, maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of owned by or licensed to the CompanyCompany and the other Group Companies.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of NewcoPurchaser, Seller (with respect to Subsection (iii) hereof and solely with respect to the Company Business) shall not, and Seller shall not permit the Group Companies to:
(i) except as may be required by the terms of any employment or consulting arrangement referred to in the Disclosure Schedule and furnished to Purchaser, (A) increase the salary or other compensation of any director or Employee employee of the Company except for normal year-end increases in or any of the Ordinary Course of Businessother Group Companies, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or any of the other Group Companies or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company or any of the other Group Companies (or amend any such agreement) to which the Company or any of the other Group Companies is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (Ba) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the CompanyCompany or any of the other Group Companies; (Cb) materially modify the terms of any Indebtedness or other Liability; or (Dc) make any loans, advances of capital contributions to, or investments in, any other PersonPerson (other than to the Subsidiaries in the Ordinary Course of Business);
(iii) (a) make, change or revoke any material Tax election, settle or compromise any material Tax claim or liability or enter into a settlement or compromise, or change (or make a request to any taxing authority to change) any material aspect of its method of accounting for Tax purposes, or (b) prepare or file any Tax Return (or any amendment thereof) unless such Tax Return shall have been prepared in a manner consistent with past practice and the Company shall have provided Purchaser a copy thereof (together with supporting papers) at least three (3) Business Days prior to the due date thereof for Purchaser to review and approve (such approval not to be unreasonably withheld, conditioned or delayed);
(iv) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company or any of the other Group Companies;
(ivv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets, whether tangible or intangible (except for fair consideration in the Ordinary Course of Business) of the CompanyCompany and the other Group Companies;
(vvi) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vivii) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or interests in, the Company or any of the other Group Companies;
(viii) cancel or compromise any debt or claim, claim or waive or release any material right of the Company or any of the other Group Companies except in the Ordinary Course of Business;
(viiix) enter into any commitment for capital expenditures in excess of $15,000 for any individual commitment and $75,000 for all commitments in the aggregate;
(x) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viiixi) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxii) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(xxiii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco the Company or Purchaserany of the other Group Companies, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixiv) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xiixv) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiiixvi) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xivxvii) take any action which would reasonably be expected to adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xvxviii) amend the limited liability company operating agreement or comparable organization document of the any Group Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixix) agree to do anything (A) prohibited by this Section 6.27.2, (B) that which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could would be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffect.
Appears in 1 contract
Samples: LLC Membership Interest Purchase Agreement (Fushi International Inc)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (i) as set forth on Schedule 7.2,(ii) as required by applicable Law, (iii) as otherwise expressly provided contemplated by this Agreement or (iv) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), between the date hereof and the Closing, the Company Sellers shall:
(i) conduct the Business only in the Ordinary Course of BusinessBusiness and in compliance with applicable Law;
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company and Business, (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);suppliers of the Business, and (C) maintain its insurance policies with respect to the Business and the Purchased Assets; and
(iii) maintain act in accordance with the Bankruptcy Court's compensation order attached hereto as Exhibit I. ---------
(Ab) all Except (i) as set forth on Schedule 7.2, (ii) as required by ------------- applicable Law, (iii) as otherwise contemplated by this Agreement or (iv) with the prior written consent of Purchaser (which consent shall not be unreasonably withheld or delayed with respect to subsections (i), (iv) and (xii) below), Sellers shall not, solely as it relates to the assets and properties ofBusiness:
(i) make or rescind any material election relating to Taxes, settle or compromise any material claim, action, suit, litigation, proceeding, 45 arbitration, investigation, audit or controversy relating to Taxes, or used byexcept as may be required by applicable Law or GAAP, make any material change to any of their methods of accounting or methods of reporting income or deductions for Tax or accounting practice or policy from those employed in the Company consistent with past practice, and (B) insurance upon all preparation of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementits most recent Tax Returns;
(ivii) (A) maintain the books, accounts and records subject any of the Company in Purchased Assets to any Lien outside of the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets that would be Purchased Assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets Assets;
(except for fair consideration iv) make any material change, whether written or oral, to any Material Contract with any of the suppliers or customers/licensees of Sellers;
(v) delay payment of any accrued expense, trade payable or other liability of Sellers beyond its due date or the date when such liability would have been paid in the Ordinary Course of Business) Business other than in respect of the Companyany cash expense, trade payable or liability being contested by Sellers in good faith;
(vvi) except as provided allow Sellers' Inventory to vary in Section 6.6 hereof, any material respect from the levels customarily maintained;
(vii) engage in any one or more material activities or transactions outside the Ordinary Course of Business;
(viii) enter into or agree to enter into any merger or consolidation with with, any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Personother entity;
(viix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company any Seller that constitutes a Purchased Asset except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes for capital expenditures in excess of $500,000 for all commitments in the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsaggregate;
(xi) terminateenter into, amendmodify or terminate any labor or collective bargaining agreement to which Sellers or their Employees are a party, restateor, supplement through negotiation or waive otherwise, make any rights under commitment or incur any liability to any labor organization;
(Axii) Material Contractalter, amend or terminate any existing Real Property Lease, Personal Property Lease or Intellectual Property License, other than enter into any lease or contract affecting any of Sellers' Properties;
(xiii) accelerate collection of any notes or accounts receivable of Sellers in advance of their regular due dates or the dates when they would have been collected in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilitiesBusiness;
(xiv) take enter into any action transaction or make any commitment which would adversely affect the ability likely result in any of the parties to consummate representations, warranties or covenants of Sellers contained in this Agreement not being true and correct after the transactions contemplated by this Agreement;
(xv) amend the operating agreement occurrence of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan such transaction or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementevent; or
(xviixv) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.7.2. -----------
Appears in 1 contract
Samples: Asset Purchase Agreement (Agway Inc)
Conduct of the Business Pending the Closing. (a) Except Subject to any obligations as debtors in possession under the Bankruptcy Code and except as otherwise expressly provided contemplated by this Agreement or the Orders of the Bankruptcy Court, from the date hereof until the Closing Date, the Seller shall conduct the Business substantially in the manner as conducted on the date of this Agreement. Without limiting the generality of the foregoing, subject to any obligations as debtors in possession under the Bankruptcy Code and except as otherwise expressly contemplated by this Agreement or the Orders of the Bankruptcy Court or with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), between from the date hereof and until the ClosingClosing Date, the Company Seller shall:
(ia) conduct Use, preserve and maintain the Acquired Assets in the Ordinary Course of Business and not cause material damage to or destruction or loss of any of such Acquired Assets;
(b) Continue to maintain the insurance covering the Acquired Assets in effect as of the date of this Agreement;
(c) Pay all debts and obligations incurred by it in the operation of the Business only in the Ordinary Course of Business;
(iid) use its commercially reasonable efforts Not commit any act, or fail to (A) preserve the present business operationsmake any payment or perform any act, organization (including officers and Employees) and goodwill which would cause or result in a material breach of any of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)Material Acquired Contracts;
(iiie) maintain (A) all Except as contemplated by Section 3.3 and except for sales of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company inventory in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on not enter into any agreement or agreements for the Balance Sheet in the Ordinary Course sale of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the CompanyAcquired Assets;
(vf) comply with Not create, assume or permit to exist any Lien upon the capital expenditure plan of the Company Acquired Assets except for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapsePermitted Encumbrances; and
(viiig) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent Maintain levels of Inventory at the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or Williamston Facilities generally consistent with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases Seller’s past practices in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the their operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 1 contract
Samples: Asset Purchase Agreement
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written WRITTEN consent of Newcothe Purchaser (which shall not be unreasonably withheld, between conditioned or delayed), until the date hereof and the Closing, Closing Date the Company shall:
(i) conduct the Business business of the Company only in the Ordinary Course ordinary course of Businessbusiness consistent with past practice;
(ii) not declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other profit participations or proprietary or equity interests in, the Company; not transfer, issue, sell or dispose of any shares of capital stock or profit participations or other proprietary or equity interests in, or other securities of the Company or grant options, warrants, calls or other rights to directly or indirectly purchase or otherwise acquire profit participations or proprietary or equity interests in the Company or shares of capital stock of the Company or other securities (except as to any of the foregoing as set forth on SCHEDULE 5F);
(iii) not effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) not amend the Articles of Incorporation or By-laws of the Company;
(v) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers and Employeesincluding, without limitation, management) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iiivi) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this AgreementAgreement (with insurers of substantially the same or better financial condition);
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, except that the Company shall maintain a comparative system of accounts in accordance with GAAP beginning October 1, 1997 and thereafter, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal historical procedures and without discounting or accelerating payment of such accounts, except that the Company shall maintain a comparative system of accounts or Liabilities utilizing all available cash in accordance with GAAP beginning October 1, 1997 and any available line of creditthereafter, and (C) comply with all contractual and other obligations applicable to the operations of the Company;
(vviii) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)not, including making such capital expenditures other than in the amounts ordinary course of business consistent with past practice and at without materially increasing the times set forth in such plan;
benefits or the costs thereof (vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(idescribed on SCHEDULE 5F) (A) increase the salary compensation payable or other compensation of any director or Employee of to become payable by the Company except for normal year-end increases in the Ordinary Course to any of Businessits respective directors, officers, employees, agents or representatives, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan plan, payment or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (DC) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iiix) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation operations of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such productsCompany;
(ixx) except as set forth on SCHEDULE 5F, not permit the Company to enter into any transaction or to make or enter into, modify or renew into any Contract which by reason of its size size, subject matter or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line ordinary course of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any promptly notify the Purchaser of (A) Material Contractany one or more or Extraordinary Losses suffered by the Company, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle any casualty losses or compromise any pending or threatened Legal Proceeding damages suffered by the Company or any claim or claims for, or that would result in a loss of revenue of, its Subsidiaries with respect to property and assets having an amount that could, individually or in the aggregate, reasonably be expected to be greater individual replacement cost of more than $50,000;
(xiii) change 100,000 or modify its creditaggregate replacement cost of more than $100,000 or which could cause a Material Adverse Change, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past duesuch losses or damages are covered by insurance, and (C) (i) any material Legal Proceeding commenced by or fail against the Company or (ii) any Legal Proceeding commenced or threatened against the Company or Freeman relating to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xvxii) amend not permit the operating agreement of the Company;
Company to make any loans to, or pay any fees or expenses (xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan Business) to, or credit agreements enter into or arrangements up to modify any Contract with, Freeman;
(xiii) promptly and accurately record in the maximum amounts appxxxxxxxe records and other terms books of account of the Company, as in effect applicable, all material corporate action taken on or after the date hereof by the shareholders or the boards of this Agreementdirectors (including committees thereof) of the Company and promptly following such recordation deliver true, correct and complete copies thereof to Purchaser; or
(xviixiv) not agree to do anything (A) prohibited by this Section 6.2, (B) 4G or anything that would make any of the representations and warranties of the Company or Freeman in this Agreement or any of the Company Seller Documents untrue or incorrect in any xx xxx material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyrespect.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except From the date of this Agreement until the Closing Date or earlier termination of this Agreement, except (w) as otherwise required by applicable Law or any Governmental Authority, (x) as expressly provided required by this Agreement or (y) with the prior written consent of NewcoPurchaser, between the date hereof Seller shall cause each Entity to (and the Closing, the Company shall:shall provide necessary funding to permit such Entity to):
(i) conduct the Business only its business in the Ordinary Course of Business;
(ii) use its reasonable best efforts to operate its business in accordance with the 2019 Transaction Budget (and, if applicable, the 2020 Transaction Budget); and
(iii) use its commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the present relationships maintain existing relations with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the assets and properties ofGovernmental Authorities, or used bycustomers, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable suppliers and other Liabilities set forth on persons with whom they have material commercial relationships and keep available the Balance Sheet services of their employees, in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of crediteach case, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects respects. The 2020 Transaction Budget, if applicable, shall be prepared by Parent in good faith, shall be consistent with all applicable Laws;
the 2019 Transaction Budget (viito the extent applicable) take steps and shall be delivered to renew all Permits in a timely manner Purchaser not less than 15 Business Days prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonmentDecember 31, loss or impairment of all Intellectual Property of the Company2019.
(b) Without limiting From the generality date of this Agreement until the Closing Date or earlier termination of this Agreement, except (w) as set forth on Section 8.2(b) of the foregoingCompany Disclosure Schedule, except (x) as otherwise required by applicable Law or any Governmental Authority, (y) as expressly provided required by this Agreement Section 8.2(c) and Section 8.15 or (z) with the prior written consent of NewcoPurchaser, the Company Seller shall cause each Entity not to, and, with respect to clauses (v) and (vi) below, Parent shall not:
(i) (A) increase the salary declare, set aside, make or pay any dividend or other compensation distribution in respect of shares, quotas or other securities of, or other ownership interests in, any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, Entity (B) grant repurchase, redeem or otherwise acquire any bonusoutstanding shares, benefit quotas or other direct securities of, or indirect compensation to other ownership interests in, any Employee Entity or director, (C) increase make any payment to or for the coverage or benefits available under any benefit of (or create any newtransfer assets to or assume, indemnify or incur Liabilities for the benefit of) severance paySeller, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus AI Brazil or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement their respective Affiliates other than another Entity (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property including with respect to the units any share capital or other equity interests securities of the Companyany Entity);
(ii) (A) createdirectly or indirectly transfer, incurissue, assumesell, guaranteeencumber or dispose of any shares, endorse quotas or other securities of any Entity or grant options, warrants, calls or other rights to purchase or otherwise become liable acquire shares, quotas or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms other securities of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonEntity;
(iii) subject to effect any Lien recapitalization, reclassification or otherwise encumber orlike change in its capitalization or voluntarily adopt a plan of complete or partial liquidation, except for Permitted Exceptionsdissolution, permitrestructuring, allow recapitalization or suffer to be subjected to other reorganization of any Lien or otherwise encumbered, any of the Purchased AssetsEntity;
(iv) acquire any material properties amend its certificate of incorporation, by-laws or assets or sellarticles of association, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Companyas applicable;
(v) except as provided required by the terms of any Company Employee Plan or Parent Employee Plan, in Section 6.6 hereofeach case, enter into as in effect on the date hereof or agree by applicable Law from time to enter into time in effect: (A) increase the compensation or benefits of any merger current or consolidation with former employee of any Person, and not engage in any new business Entity or invest in, make a loan, advance (B) grant or capital contribution topay, or otherwise acquire the securities commit to grant or pay, any bonus or other incentive compensation, benefit or other compensation to any current employee of any PersonEntity;
(vi) cancel except as required by the terms of any Company Employee Plan or compromise any debt Parent Employee Plan, in each case, as in effect on the date hereof or claimby applicable Law from time to time in effect: (A) enter into, adopt, establish, modify, amend or terminate, or waive commence any off-cycle enrollment period under, any Company Employee Plan or, as it relates to any current or release former employee of any material right Entity, any Parent Employee Plan, (B) fund any rabbi trust or similar arrangement or otherwise accelerate the time of funding, vesting or payment of any payments or benefits due to any current or former employee of any Entity, (C) enter into, modify, amend or terminate any labor or collective bargaining agreement that covers any current or former employee of any Entity, (D) without prejudice to Sections 3.2(a)(iii) and 3.2(b)(iii), hire (other than to replace any vacancy existing on the date of this Agreement or resulting from a permitted termination under this Agreement or a termination initiated by an employee, in each case where filling such vacancy is essential, as reasonably determined by the Company, to the operation of the business) or terminate (other than for cause, as determined by the Company in good faith) any officer of the Entities or employees who are the direct reports of the Chief Executive Officer of Nextel Brazil, or (E) transfer any employee of Parent or any of its Subsidiaries into or out of the Entities;
(vii) subject any of its properties or assets (whether tangible or intangible) to a Lien, except for Permitted Liens in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce (A) acquire any material change with respect to the operation of the Businessproperties, including any material change in the typesrights, nature, composition spectrum or quality of products or services, orother assets, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than supplies and inventory in the Ordinary Course of Business or (B) Permit;
sell, assign, license, transfer, lease or otherwise dispose of (xii) settle including by abandoning, cancelling, allowing to lapse or compromise failing to renew or continue to prosecute or defend any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past dueIntellectual Property) or fail encumber any of its material properties, rights, Telecommunication Licenses or assets (except sales of inventory to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except customers in the Ordinary Course of Business under loan or credit agreements sales of obsolete or arrangements up worthless inventory);
(ix) other than in the Ordinary Course of Business, cancel or compromise any material Indebtedness or claim or waive or release any material right or economic benefit of any Entity;
(x) enter into or agree to enter into any merger, consolidation, joint venture or strategic partnership;
(xi) other than short-term financial investments in marketable securities made in the Ordinary Course of Business, acquire the securities of any other Person;
(xii) change the accounting methods, practices or procedures applicable to the maximum amounts and Entities, except as required by U.S. GAAP, Brazilian GAAP or applicable Law;
(xiii) enter into, amend, modify or grant a waiver under any Related Party Contract;
(xiv) (A) terminate, renew, amend or otherwise modify in any material respect, or waive any material right under, any Material Contract or (B) other terms as than in the Ordinary Course of Business, enter into any Contract that would constitute a Material Contract if in effect as of the date hereof;
(xv) (A) enter into any line of business in any geographic area other than the current lines of business of the Entities and products and services reasonably ancillary thereto, (B) except as currently conducted, engage in the conduct of any business in any state that would require the receipt of a new or transfer of an existing Company Telecommunication License, or (C) conduct any business operations outside of Brazil (excluding pursuant to customary roaming arrangements and procurement of services from Persons outside of Brazil);
(xvi) fail to maintain, allow to lapse, or abandon, including by failure to pay any required fees or expenses of any kind, any Telecommunication License or other license or Permit material to the business or operation of the Entities;
(xvii) make any loans, advances, guarantees or capital contributions to or investments in any Person, other than (A) to the Entities or (B) advances to employees in the Ordinary Course of Business and not in excess of R$10,000 in the aggregate to any single Person;
(xviii) incur any Indebtedness for borrowed money other than third party Indebtedness in an aggregate amount less than R$10,000,000, only to the extent that (A) such Indebtedness is repayable at the option of the borrower without penalty or premium and (B) Seller has provided Purchaser with prior notice specifying the intended use of proceeds;
(xix) become legally committed to make capital expenditures not included in the 2019 Transaction Budget or, if applicable, the 2020 Transaction Budget that, to the extent unpaid as of Closing, will not be specifically reflected as a liability in the calculation of Closing Net Working Capital, Closing BRL Indebtedness or Closing USD Indebtedness and taken into account in determining the Final Purchase Price;
(xx) except as provided on Section 8.2(b)(xx) of the Company Disclosure Schedule, enter into any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, for which liabilities thereunder are required to be classified and accounted for under U.S. GAAP as capital leases;
(xxi) (A) delay or postpone the payment of accounts payable or accrued expenses, or accelerate the collection of accounts receivable, in each case outside the Ordinary Course of Business, (B) change cash management policies, or (C) engage in any discounts or price reductions or alter the extension of credit terms to any customer, in each case outside of the Ordinary Course of Business;
(xxii) settle any Action, other than settlements in the Ordinary Course of Business that impose solely monetary obligations not in excess of R$10,000,000 (it being understood that this clause (xxii) shall not apply to settlement of any Transaction Litigation, which is governed by Section 8.8);
(xxiii) make or change any material Tax election, change any method of Tax accounting, consent to any extension or waiver of the statute of limitations period applicable to any Taxes, agree to any material adjustment of any Tax attribute or use any Tax attribute outside of the Ordinary Course of Business, amend any Tax Return, settle or otherwise finally resolve any dispute with respect to a material amount of Tax or file a claim for any refund of Tax outside the Ordinary Course of Business for claiming such refunds;
(xxiv) settle, enter into any amnesty, installment or equivalent agreement or program with respect to, or assign by any means, any Tax credits or rights of any of the Entities to or with any public or private party and/or Governmental Authority;
(xxv) use, offset or assign by any means any PIS/COFINS credits or rights resulting from any PIS/COFINS Credits Claim, except solely for the purposes and in accordance with the conditions described in Section 8.15 (provided that, for the avoidance of doubt, the Entities may use or offset by any means, in the Ordinary Course of Business, any PIS/COFINS credits or rights not resulting from PIS/COFINS Credits Claims);
(xxvi) amend, cancel, terminate, extinguish, grant any waiver under, forgive or otherwise modify the terms of the Intercompany Notes (any of the actions described in this clause (xxvi), an “Intercompany Notes Modification”); or
(xxvii) agree or commit in writing to do anything prohibited by this Section 8.2.
(c) From the date of this Agreement until the Closing Date or, if earlier, the termination of this Agreement; or
, Seller will, and Parent will cause Seller to, (xviii) agree contribute or cause to do anything be contributed cash in Dollars to Nextel Holdings, which shall in turn contribute such cash to Brazil Parent and its Subsidiaries in amounts sufficient for Brazil Parent and its Subsidiaries to conduct their business in the Ordinary Course of Business and in accordance with this Agreement and (ii) will cause Brazil Parent and its Subsidiaries to maintain at least $20,000,000, in cash, in all Brazil-based company cash accounts on the last day of each month. For purposes of the contributions described in clause (i) of the preceding sentence, (A) prohibited all such contributions shall be made solely by the existing equity holder or equity holders of the applicable Entity and no other Person, and (B) all new equity interests issued in exchange for such contributions shall be common equity in the form of ordinary shares or quotas, as applicable, of the same type and class as the existing outstanding equity interests of the applicable Entity, without any preferential terms. In no event shall the Entities obtain equity financing or incur any Indebtedness (including Indebtedness between or among the Entities) of any kind prior to the Closing, other than the equity financing described in this Section 8.2(c) or the incurrence of Indebtedness expressly permitted by Section 8.2(b)(xviii). Any contributions by Seller to Nextel Holdings described in this Section 8.2(c) may be accompanied by equity contributions from AI Brazil, provided that such equity contributions by AI Brazil are made solely in accordance with the terms required by this Section 6.2, 8.2(c).
(Bd) that would make any From the date of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to until the Closing not being satisfied Date or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companyearlier termination of this Agreement, neither Seller nor AI Brazil shall directly or indirectly transfer, sell, encumber or dispose of any shares, quotas or other securities of any Entity.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as (i) otherwise expressly provided by this Agreement Agreement, (ii) as required by Applicable Law, (iii) as conducted in the Ordinary Course of Business, or (iv) as conducted with the prior written consent of NewcoPurchaser, between and subject to Seller’s stated intent to sell the date hereof and operating assets of the ClosingBusiness that are not Purchased Assets to one or more third parties, the Company Seller shall:
(i) Except as set forth in Section 7.2(a)(i) of the Disclosure Memorandum, conduct the Business only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of Seller as they relate to the Company Business or Purchased Assets and (B) preserve the maintain its present relationships with Persons having business dealings with Seller (including, without limitation, customers, suppliers, officers, employees, underwriters, agents, brokers, sales representatives, correspondents, landlords and investors) with respect to the Company (including customers and suppliers)Business or the Purchased Assets;
(iii) maintain (A) all of the assets and properties ofof Seller that relate to the conduct of the Business or the Purchased Assets in their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the assets and properties of Seller that relate to the Company conduct of the Business or the Purchased Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of Seller that relate to the Company conduct of the Business or the Purchased Assets in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on that relate to the Balance Sheet in conduct of the Ordinary Course of Business or the Purchased Assets utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all contractual and other obligations applicable Lawsto the operation the Business and the Purchased Assets;
(viiv) take steps comply in all material respects with all Applicable Laws that relate to renew all Permits in a timely manner prior to their lapse; andthe conduct of the Business or the Purchased Assets;
(viiivi) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Purchased Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of BusinessProperty;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability continue the existing credit collection control of delinquencies and other policies and practices relating to any labor organization with respect to any Employeethe conduct of the Business;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;; and
(xvix) amend the operating agreement of the Company;pay all applicable Taxes as such Taxes become due and payable.
(xvib) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except Except as (i) otherwise expressly provided by this Agreement, (ii) as required by Applicable Law, (iii) as conducted in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; Business, or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.
Appears in 1 contract
Samples: Asset Purchase Agreement (First Horizon National Corp)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, subject to any obligations as debtors-in-possession under the Bankruptcy Code (in the case of the Purchased Assets other than the Mexican Purchased Assets and the Canadian Purchased Assets) and except (1) as set forth on Schedule 8.2(a), (2) as required by applicable Law, (3) as otherwise expressly provided contemplated by this Agreement Agreement, or (4) with the prior written consent of NewcoPurchaser which shall not be unreasonably withheld or delayed, between Sellers shall, and shall cause each of their respective Subsidiaries to (in each case, solely in respect of the date hereof and the Closing, the Company shall:Business):
(i) conduct the Business only in the Ordinary Course and preserve and maintain the Purchased Assets in the condition in which they were existing as of Business;the date hereof, normal wear and tear excepted; and
(ii) use its their commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business and (B) preserve the present relationships with Persons having customers, suppliers, partners, employees, lessors, licensors, licensees, distributors and other non-Affiliated Person with which Sellers or their respective Subsidiaries has significant business dealings relationships. For avoidance of doubt, Seller shall cooperate reasonably with Purchaser to enter into discussions with Purchaser and any customer that Purchaser believes is reasonably likely to terminate or materially, adversely modify its relationship with the Company (including customers and suppliers);
(iii) maintain (A) all of Business or the assets and properties ofSellers, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companyapplicable.
(b) Without limiting Subject to any obligations as debtors-in-possession under the generality Bankruptcy Code (in the case of the foregoingPurchased Assets other than the Mexican Purchased Assets and the Canadian Purchased Assets) and except (1) as set forth on Schedule 8.2(b), except (2) as required by applicable Law, (3) as otherwise expressly provided contemplated by this Agreement or (4) with the prior written consent of NewcoPurchaser which shall not be unreasonably withheld or delayed, the Company Sellers shall not:, and shall cause each of their respective Subsidiaries not to (in each case, solely in respect of the Business):
(i) (A) increase the salary compensation or benefits of any Employee or any Employee’s beneficiary or dependent (except as required by any Employee Plan, Labor Agreement or other compensation of any director or Employee of the Company except for normal year-end increases in the Ordinary Course of Business, (B) grant any bonus, benefit or other direct or indirect compensation agreement applicable to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the Company;
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree hereof or except in the Ordinary Course with respect to do anything (A) prohibited by this Section 6.2Employees that make or would make less than $150,000 per year in total compensation), or (B) that would make enter into, amend or modify any of the representations and warranties of the Company in this Agreement Employee Plan to increase or accelerate any of the Company Documents untrue benefits or incorrect in increase any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.benefit costs; or
Appears in 1 contract
Samples: Asset Purchase Agreement
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Sellers shall, and shall cause the Company shallto:
(i) conduct Conduct the Business respective businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Sellers shall not, and shall cause the Company not to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, between prior to the date hereof Closing the Sellers shall, and the Closing, shall cause the Company shallto:
(i) conduct Conduct the Business respective businesses of the Company only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use Use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)Company;
(iii) maintain Maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of the Company in such amounts and of such kinds comparable com-parable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations applicable to the operation of the Company;; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply Comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Companylaws.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, prior to the Closing the Sellers shall not, and shall cause the Company shall notnot to:
(i) Declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) Transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company;
(iii) Effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company;
(iv) Amend the certificate of incorporation or by-laws of the Company;
(A) materially increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in the Ordinary Course of BusinessCompany, (B) increase the annual level of compensation payable or to become payable by the Company to any of its executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; party or (E) pay involving a director, officer or make any dividend employee of the Company in his or distribution of cash her capacity as a director, officer or other property with respect to the units or other equity interests employee of the Company;
(iivi) (A) createExcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) of any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Dateother Person, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify change the terms of any Indebtedness payables or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Personreceivables;
(iiivii) subject Subject to any Lien or otherwise encumber or, lien (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedleases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company;
(ivviii) acquire Acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice) of the CompanyCompany except, with respect to the items listed on Schedule 6.2(b)(viii) hereto, as previously consented to by the Purchaser;
(vix) Cancel or compromise any debt or claim or waive or release any material right of the Company except as provided in Section 6.6 hereof, the ordinary course of business consistent with past practice;
(x) Enter into any commitment for capital expenditures out of the ordinary course;
(xi) Permit the Company to enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(xii) Permit the Company to enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change Except for transfers of cash pursuant to normal cash management practices, permit the Company to make any investments in or loans to, or pay any fees or expenses to, or enter into or modify its creditany Contract with, collection any Seller or payment policies, procedures or practices, including acceleration any Affiliate of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;any Seller; or
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree Agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company Sellers in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of time through and including the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffective Time.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement Agreement, or as expressly required to effect the Pre-Sale Reorganization or with the prior written consent of NewcoPurchaser (such consent not to be unreasonably withheld or delayed), between Sellers shall, and Sellers shall cause the date hereof Company and the Subsidiaries, pending Closing, the Company shallto:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its their commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers and Employeesemployees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)Subsidiaries;
(iii) maintain (A) all of the properties and assets and properties of, (whether tangible or used by, intangible) of the Company consistent with past practiceand the Subsidiaries in their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties (whether tangible or intangible) of the Company and the Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company, the Company and the Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the CompanyCompany and the Subsidiaries;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(vsubject to Section 7.2(xi), including make on a timely basis and not delay the making such of planned capital expenditures in the amounts and at the times set forth in such plan;expenditures; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchaser (such consent not to be unreasonably withheld or delayed), Sellers shall not, and Sellers shall cause the Company shall notand the Subsidiaries not to:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of, or other ownership interests in, the Company or any of the Subsidiaries or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Subsidiaries;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or interests in, the Company or any of the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or interests in, the Company or any of the Subsidiaries;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of the Company or any of the Subsidiaries, or amend the terms of any outstanding securities of the Company or any of the Subsidiaries;
(iv) amend the memorandum of association, articles of association, certificate of incorporation or by-laws or equivalent organizational documents of the Company or any of the Subsidiaries;
(v) other than in the Ordinary Course of Business (A) increase the salary or other compensation of any director officer or Employee employee of the Company or any of the Subsidiaries, except for normal year-end increases in the Ordinary Course of Businessincreases, (B) grant any bonusunusual or extraordinary bonus (excluding any Employee Bonus), benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company or any of the Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company or any of the Subsidiaries (or amend any such agreement) agreement to which the Company or any of the Subsidiaries is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company);
(iivi) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently contingently, or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5Indebtedness; (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the CompanyCompany or any of the Subsidiaries; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other PersonPerson (other than to wholly-owned Subsidiaries in the Ordinary Course of Business);
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of the Company or any of the Subsidiaries;
(ivviii) acquire any material properties or assets (whether tangible or intangible) or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets (except for fair consideration whether tangible or intangible) of the Company and the Subsidiaries, other than in the Ordinary Course of Business) of Business or in connection with the CompanyPre-Sale Reorganisation;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company or any of the Subsidiaries except in the Ordinary Course of Business;
(viixi) enter into any commitment for capital expenditures of the Company and the Subsidiaries in excess of $50,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(xii) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of the Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company or any Employeeof the Subsidiaries;
(viiixiii) introduce any material change with respect to the operation of the BusinessCompany or any of the Subsidiaries, including any material change in the types, nature, composition or quality of its products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxiv) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, permit the Company or any of the Subsidiaries to make any investments in or loans to, or pay any fees or expenses to, or enter into any transaction or enter into, modify or renew any Contract which by reason with any Affiliate of the Company or any of the Subsidiaries, or any director, officer or employee of the Company or any of the Subsidiaries;
(xv) make a change in its size accounting or otherwise is not Tax reporting principles, methods or policies other than in the Ordinary Course of Business;
(xxvi) other than in the Ordinary Course of Business, make or revoke any material Tax election, or settle or compromise any material Tax liability or enter into a settlement or compromise with respect thereto, or change (or make a request to any taxing authority to change) any material aspect of its method of accounting for Tax purposes;
(xvii) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco the Company or Purchaser, any of the Subsidiaries to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixviii) terminate, amend, restate, supplement or waive any rights under any (A) Permit, Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) PermitBusiness;
(xiixix) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiiixx) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xivxxi) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;; and
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixxii) agree to do anything (A) prohibited by this Section 6.2, 7.2(b) or (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffect.
Appears in 1 contract
Samples: Share Purchase Agreement (Warner Electric International Holding, Inc.)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (1) as set forth on Schedule 8.2(a), --------------- (2) as required by applicable Law, (3) as otherwise expressly provided contemplated by this Agreement or (4) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), between the date hereof and the Closing, the Company Seller shall:
(i) conduct the Business only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Employees) and goodwill of the Company Business, and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers)suppliers of the Business;
(iii) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company act in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply accordance with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions Bankruptcy Court's compensation order attached hereto as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.Exhibit B. ---------
(b) Without limiting the generality of the foregoingExcept (1) as set forth on Schedule 8.2(b), except (2) as required by --------------- applicable Law, (3) as otherwise expressly provided contemplated by this Agreement or (4) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld or delayed), the Company Seller shall not, as it relates to the Business:
(i) (A) increase the salary make or other compensation rescind any material election relating to Taxes, except as may be required by applicable Law or GAAP, make any material change to any of any director their methods of accounting or Employee methods of the Company except reporting income or deductions for normal year-end increases Tax or accounting practice or policy from those employed in the Ordinary Course preparation of Business, (B) grant any bonus, benefit or other direct or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companyits most recent Tax Returns;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) subject any Indebtedness except (u) of the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject Purchased Assets to any Lien or otherwise encumber orLien, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iviii) acquire any material properties or assets that would be Purchased Assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) of the CompanyAssets;
(viv) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Personother entity;
(viv) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Seller that constitutes a Purchased Asset except in the Ordinary Course of Business;
(vi) enter into any commitment for capital expenditures in excess of $15,000 for any individual commitment and $25,000 for all commitments in the aggregate;
(vii) hire any additional employees outside of the ordinary course of business or enter into, modify or terminate any labor labor, collective bargaining, employment or collective bargaining noncompete agreement or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementorganization; or
(xviiviii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company.8.2. -----------
Appears in 1 contract
Samples: Asset Purchase Agreement (Agway Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newco, between the date hereof and the ClosingPurchaser, the Company Seller shall:
(i) conduct the Business its business only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) and goodwill of the Company and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers and suppliers)it;
(iii) maintain (A) all of the its assets and properties ofin their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the its properties and assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the its books, accounts and records of the Company in the Ordinary Course ordinary course of Businessbusiness consistent with past practices, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and (C) comply with all contractual and other obligations of the Company;applicable to its operation; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Seller shall not:
(i) (A) increase the salary or other compensation of any director or Employee of the Company except for normal year-end increases trade payables and for indebtedness for borrowed money incurred in the Ordinary Course ordinary course of Businessbusiness and consistent with past practice, (B) grant borrow monies for any bonus, benefit reason or other direct draw down on any line of credit or indirect compensation to any Employee or director, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, fordebt obligation, or with any of become the directorsguarantor, officerssurety, Employees, agents or representatives of the Company endorser or otherwise modify liable for any debt, obligation or amend or terminate any such plan or arrangement liability (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Company;
(ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently contingent or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiiii) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedliens that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the Purchased Assetsits properties or assets (whether tangible or intangible);
(iviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets its material properties or assets (except for fair consideration in the Ordinary Course ordinary course of Businessbusiness consistent with past practice);
(iv) cancel or compromise any debt or claim or waive or release any material right except in the ordinary course of the Companybusiness consistent with past practice;
(v) except as provided enter into any commitment for capital expenditures in Section 6.6 hereofexcess of $5,000 for any individual commitment and $20,000 for all commitments in the aggregate;
(vi) introduce any material change with respect to its operation, including any material change in the types, nature, composition or quality of its products or services, experience any material change in any contribution of its product lines to its revenues or net income, or, other than in the ordinary course of business, make any change in product specifications or prices or terms of distributions of such products;
(vii) enter into any transaction or make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice;
(viii) enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) except for transfers of cash pursuant to normal cash management practices, make any investments in or loans to, or pay any fees or expenses to, or enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into with any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementAffiliate; or
(xviix) agree to do anything (A) prohibited by this Section 6.2, (B) that 5.2 or anything which would make any of the representations and warranties of the Company Seller in this Agreement or any of the Company Seller Documents untrue or incorrect in any material respect or could result in as of any of the conditions to time through and including the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the CompanyDate.
Appears in 1 contract
Samples: Asset Purchase Agreement (Titan Global Holdings, Inc.)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, between Cap Corp during the date hereof and the Closing, the Company Interim Period shall:
(i) conduct the Business business of Cap Corp only in the Ordinary Course of Businessordinary course consistent with past practice;
(ii) use its commercially reasonable best efforts to (A) preserve the its present business operations, organization (including officers including, without limitation, management and Employeesthe staff) and goodwill of the Company Cap Corp and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers Corporation and suppliers)Cap Corp;
(iii) maintain (A) all of the assets and properties ofof Cap Corp in their current condition, or used by, the Company consistent with past practice, ordinary wear and tear excepted and (B) insurance upon all of the assets and properties of the Company Assets in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) maintain
(A) maintain the books, accounts and records of the Company Cap Corp in the Ordinary Course ordinary course of Business, business consistent with past practices,
(B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditaccounts, and and
(C) comply with all contractual and other obligations applicable to the operation of the CompanyCap Corp;
(v) comply with promptly pay and discharge all liabilities (including liabilities for services rendered or goods delivered to Cap Corp) that are due and payable by it prior to the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making Closing Date except where such capital expenditures liabilities are being disputed in the amounts and at the times set forth in such plan;good faith by appropriate proceedings; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of Newcothe Purchaser, the Company Corporation and the Vendors during the Interim Period shall not:
(i) repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, Cap Corp or the Corporation;
(ii) transfer, issue, sell or dispose of any shares of capital stock, partnership interests or other securities of the Corporation or Cap Corp or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock, partnership interests or other securities of the Corporation or Cap Corp;
(iii) effect any recapitalization, reclassification, share split or like change in the capitalization of the Corporation or Cap Corp (except in the case of the amalgamation of Cap Corp with other companies held directly or indirectly by Gus);
(iv) axxxd the certificate of incorporation, articles, bylaws, certificate of limited partnership or partnership agreement of the Corporation or Cap Corp;
(v) except as set forth on Schedule 7.2, (A) increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end Cap Corp whose annual compensation exceeds C$40,000, other than any such increases of less than 5% in the Ordinary Course aggregate granted in the ordinary course of Businessbusiness consistent with past practice, (B) increase the annual level of compensation payable or to become payable by Cap Corp to any of their respective executive officers, (C) grant any bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant whose annual compensation exceeds C$40,000, other than in the ordinary course consistent with past practice and in such amounts as are fully reserved against in the Financial Statements, (CD) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company Cap Corp or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Cap Corp is a party; party or (E) pay involving a director, officer or make any dividend employee of Cap Corp in his or distribution her capacity as a director, officer or employee of cash or other property with respect to the units or other equity interests of the CompanyCap Corp;
(iivi) (A) createexcept for trade payables and for indebtedness for borrowed money incurred in the ordinary course of business and consistent with past practice, incurborrow monies for any reason or draw down on any line of credit or debt obligation, assumeor become the guarantor, guaranteesurety, endorse endorser or otherwise become liable for any debt, obligation or responsible with respect to liability (whether directly, contingently contingent or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedLien, any of the Purchased Assets;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets Assets, except (except other than with respect to the Stores or the Business) for fair consideration in the Ordinary Course ordinary course of Business) business consistent with past practice of the CompanyCap Corp;
(vix) cancel or compromise any debt or claim or waive or release any material right related to the Business or the Assets of Cap Corp except as provided in Section 6.6 hereofthe ordinary course of business consistent with past practice;
(x) enter into any commitment for Capital Expenditures of Cap Corp or the Corporation;
(xi) enter into, modify or terminate any labor or collective bargaining agreement of the Corporation or Cap Corp or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization with respect to the Corporation or Cap Corp;
(xii) introduce any material change with respect to the operation of Cap Corp, including any material change in the types, nature, composition or quality of its products or services or, other than in the ordinary course of business, make any change in specifications for product or services of the Business or prices or terms of distributions of such product or services;
(xiii) enter into any transaction or to make or enter into any Contract which by reason of its size or otherwise is not in the ordinary course of business consistent with past practice of Cap Corp or the Business;
(xiv) become obligated to develop any new locations;
(xv) enter into or agree to enter into any merger or consolidation with any Person, and not Person or engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of of, any other Person;
(vixvi) cancel except for transfers of cash pursuant to normal cash management practices, make any investments in or compromise any debt or claimloans to, or waive pay any fees or release expenses to, or enter into or modify any material right Contract with any of the Company except in Vendors, partner or Affiliate of the Ordinary Course of BusinessVendors;
(viixvii) enter intorestructure, change, modify or terminate renegotiate the terms of any labor obligation of Cap Corp to another Person which restructuring, change, modification or collective bargaining agreement orrenegotiation has the effect of extending, through negotiation delaying or otherwise, make deferring the time for payment or performance of any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, orsuch obligation, other than in the Ordinary Course ordinary course of Business, make any change in product specifications or prices or terms of distributions of such productsbusiness consistent with past practice;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixviii) agree to do anything (A) prohibited by this Section 6.2, (B) that 7.2 or take or omit to take any action which would make any of the representations and warranties of the Company Vendors in this Agreement or any of the Company Transaction Documents untrue or incorrect in any material respect during the Interim Period; or
(xix) make any material Tax allocation or could result settle or compromise any Tax liability for an amount materially in any excess of the conditions to liability therefor that is reflected on the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to financial statements of Cap Corp for the Companyperiod ended January 31, 1997.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except During the period from the date of this Agreement through the Closing Date, except as otherwise expressly provided contemplated by this Agreement or with the prior written consent of NewcoPurchaser, between the date hereof Seller shall, and the ClosingShareholders shall cause Seller to, the Company shall:
(i) conduct the Business only its business in the Ordinary Course ordinary and usual course of Business;
(ii) business in a manner consistent with past custom and practice, and use its commercially reasonable best efforts to (A) preserve intact its present business organization, to make available to Purchaser the services of Seller Employees, to preserve the present business operations, organization (including officers goodwill and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons clients and others having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) Seller, to perform in all material respects all of its obligations under the assets In-Process Engagements, Support Engagements and properties of, or used by, the Company consistent with past practiceContracts, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue cause Seller to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) . Without limiting the generality of the foregoing, except as otherwise expressly provided by during the period from the date of this Agreement or through the Closing Date, except with the prior written consent of NewcoPurchaser, the Company which consent will not be unreasonably conditioned, delayed or withheld, or as expressly contemplated hereby, Seller shall not:
(ia) (A) increase the salary declare, set aside, make or pay any dividend or other compensation of any director or Employee distribution in respect of the Company except for normal year-end increases in the Ordinary Course of Businesscapital stock of, (B) grant any bonus, benefit shares or other ownership interests in, Seller;
(b) make any direct or indirect compensation redemption, repurchase or other acquisition of any outstanding shares of the capital stock or other securities of, or other ownership interests in, Seller;
(c) except as set forth in Schedule 6.1(c), transfer, issue, grant, award, sell, pledge, dispose of or encumber or authorize the transfer, issuance, grant, award, sale, pledge, disposition or encumbrance of any shares of capital stock or other securities of, or other ownership interests in, Seller, or grant options, warrants, calls, commitments or rights of any kind to purchase or otherwise acquire any shares of the capital stock or other securities of, or other ownership interests in, Seller;
(d) abandon, allow to lapse, or otherwise dispose of any Seller Intellectual Property, or, other than in the ordinary and usual course of business consistent with past custom and practice, disclose any Trade Secrets of Seller;
(e) amend its articles of incorporation or bylaws;
(f) split, combine, sub-divide or reclassify any outstanding shares of its capital stock;
(g) liquidate, dissolve or effect a recapitalization or reorganization in any form of transaction;
(h) sell, transfer, convey, assign or otherwise dispose of any of its assets, properties or rights other than in the ordinary course of business consistent with past custom and practice, or subject any of its assets, properties or rights to any Employee or directorLien, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus charge or other incentive compensationrestriction other than in the ordinary course of business consistent with past custom and practice;
(i) except as set forth in Schedule 6.1(i) make any change in the compensation payable or to become payable to any of Seller’s officers, insurancedirectors, pension employees, agents, contractors or consultants or to Persons providing management services; make any loans (other than business expenses advanced in the ordinary course of business) to any of its officers, directors, employees, Affiliates, agents, contractors or consultants whether pursuant to an employee benefit plan or arrangement made tootherwise; or grant, forissue, or with any of the directorsaccelerate, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition accrue or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) agree to which the Company is a party; or (E) pay or make any dividend accrual or distribution arrangement for payment of cash salary or other property payments or benefits pursuant to, or adopt or amend, any new or existing Seller Benefit Plan;
(j) make any changes to its accounting methods, policies, principles, practices or internal control procedures;
(k) make or revoke any express or deemed election for Tax purposes, amend any Tax Returns, obtain or file for any rulings with respect to the units Taxes, offer to settle or other equity interests of the Companycompromise or settle or compromise any liability with respect to Taxes, with respect to Seller;
(l) purchase any asset (other than in the ordinary course of business) for a cost in excess of $500,000;
(m) make capital expenditures in an amount which exceeds $500,000 for any item or $1,000,000 in the aggregate;
(n) incur any Liabilities, except trade payables and accrued expenses incurred in the ordinary course of the business consistent with past practice, none of which individually or in the aggregate, is material;
(o) (i) incur or assume any long-term indebtedness or any short-term indebtedness; (ii) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) for the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms obligations of any Indebtedness or other LiabilityPerson; or (Diii) other than business expenses advanced to employees in the ordinary course of business, make any loans, advances of or capital contributions to, or investments in, any other Person;
(iiip) subject fail to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any conduct its cash management customs and practices (including the timing of collection of receivables and payment of payables and other current liabilities) and maintain its books and records in the Purchased Assetsordinary course of business consistent with past practice;
(ivq) acquire pay, discharge or satisfy any material properties Liabilities, other than the payment, discharge or assets or sell, assign, license, transfer, convey, lease or otherwise dispose satisfaction of any of the Purchased Assets (except for fair consideration such Liabilities reflected or reserved against in the Ordinary Course Most Recent Financial Statements or incurred in the ordinary course of Business) of the Companybusiness consistent with past practice since March 31, 2008;
(vr) except as provided engage in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in other corporation (or any new business transaction having a similar effect) involving Seller or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities any acquisition of any business unit or operation (however effected) of any other Person;
(vis) cancel or compromise any debt or claim(i) modify, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify amend or terminate any labor material Contract, (ii) waive, release or collective bargaining agreement or, through negotiation assign any rights or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce claims under any material change with respect to the operation of the Business, including any material change in the types, nature, composition Contract; or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixiii) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of BusinessContracts that would be required to be set forth on Schedule 4.12;
(xt) enter into hire or terminate any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables employee (whether or not past duein the ordinary course of business) or fail to pay or delay payment who has an annual salary in excess of payables or other liabilities$200,000;
(xivu) permit any insurance policy naming it as beneficiary or a loss payee to be cancelled or terminated;
(v) cancel any debts, waive any rights of value or settle any Proceeding;
(w) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could is reasonably likely to result in any of the conditions to the Closing set forth in Article VII not being satisfied or in the delay in the satisfaction of any such condition; or
(Cx) that could be reasonably expected commit, whether in writing or otherwise, to have a Material Adverse Effect with respect do any of the foregoing, or authorize, recommend, propose or announce an intention to do any of the Companyforegoing.
Appears in 1 contract
Samples: Asset Purchase Agreement (Huron Consulting Group Inc.)
Conduct of the Business Pending the Closing. (a) Except Prior to the Closing, except (I) as set forth in Section 7.2 of the Disclosure Letter, (II) as required by applicable Law, (III) as otherwise expressly provided contemplated by the express terms of this Agreement or (IV) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between the date hereof conditioned or delayed), Seller shall, and the Closing, the Company shallshall cause each Purchased Subsidiary to:
(i) conduct the Business only in the Ordinary Course of BusinessCourse;
(ii) (A) use its their commercially reasonable efforts to (A) preserve and maintain intact the present business operations, organization (including officers and Employees) and goodwill of each Purchased Subsidiary and the Company Business, and (B) preserve the present and maintain good relationships with Persons customers, suppliers, lenders, Governmental Bodies, creditors, business associates and others having business dealings material relationships with, each Purchased Subsidiary and the Business;
(iii) manage the working capital of the Business and each Purchased Subsidiary (including the timing of collection of accounts receivable and of the payment of accounts payable and the management of Inventory) in the Ordinary Course;
(iv) make capital expenditures of the Business and each Purchased Subsidiary consistent with those contemplated by the capital expenditure budget set forth in Section 7.2(b)(ix) of the Disclosure Letter; and
(v) use commercially reasonable efforts to keep available the services of the directors, officers, agents and key employees of the Business and of each Purchased Subsidiary.
(b) Except (I) as set forth in Section 7.2 of the Disclosure Letter, (II) as required by applicable Law, (III) as otherwise contemplated by express terms of this Agreement or (IV) with the Company prior written consent of Purchaser (including customers which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall not, and suppliersSeller shall cause each Purchased Subsidiary to not:
(i) with respect to the shares of Capital Stock of any Purchased Subsidiary: (A) transfer, issue, sell, pledge or dispose of such shares or other securities, (B) grant options, warrants, calls or other rights to purchase such shares or other securities; (C) split, combine or effect any recapitalization, reclassification or like change in such shares or other securities (whether by merger, consolidation or otherwise); or (D) redeem, repurchase or otherwise acquire any such shares or other securities (whether by merger, consolidation or otherwise);
(ii) subject to Section 7.25, permit any Purchased Subsidiary to declare, set aside or pay any dividend or distribution (whether in cash, stock or property, or any combination thereof) to any Person other than a Purchased 64 Subsidiary except (A) dividends or other distributions consisting solely of Cash and Cash Equivalents (but only to the extent such dividends or distributions would not reasonably be expected to cause the Cash and Cash Equivalents held by any Purchased Subsidiary at the Closing to be less than the Minimum Purchased Subsidiary Cash for such Purchased Subsidiary) or (B) as may facilitate the termination of certain Contracts, arrangements or Liabilities contemplated by Section 7.23 (Intercompany Accounts Restructuring);
(iii) maintain (A) all amend the certificate of the assets incorporation or by-laws or comparable organizational and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all governing documents of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this Agreementany Purchased Subsidiary;
(iv) (A) maintain the books, accounts and records of the Company other than in the Ordinary Course of Business, (Bor as required by any Benefit Plan disclosed in Section 5.14(a) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)Letter, including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) increase the salary or other annual level of compensation of any director Business Employee or Employee of the Company except for normal year-end increases in the Ordinary Course of BusinessBusiness Service Provider, (B) grant any bonus, unusual or extraordinary bonus or employee benefit or other direct or indirect compensation to any Business Employee or directorBusiness Service Provider, (C) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus Business Benefit Plan or other incentive compensation, insurance, pension Seller Benefit Plan or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition competition, change-in-control, retention or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company any Purchased Subsidiary is a party; party or involving a Business Employee or Business Service Provider, except, in each case, (x) as required by applicable Law from time to time in effect or by the terms of any Benefit Plans in effect as of the date hereof and heretofore provided to Purchaser, (y) increases in benefits under a Benefit Plan covering any group of employees of Seller and its Affiliates generally which would not result in a material increase in cost to Purchaser or its Affiliates or (z) with respect to any Business Employee or Business Service Provider that Purchaser has indicated a desire not to employ or engage following the Closing;
(v) create, assume or permit to exist, any Lien upon any of the properties or assets (whether tangible or intangible) of any Purchased Subsidiary or any Purchased Assets, except for Permitted Exceptions;
(vi) other than with respect to the Excluded Assets, acquire any material properties or assets or sell, assign, license, pledge, encumber, grant, transfer, convey, lease or otherwise dispose of any of the properties or assets (including any Business Intellectual Property) of any Purchased Subsidiary or Seller (to the extent related to the Business) (except (A) for Inventory pursuant to an existing Contract for fair consideration in the Ordinary Course, (B) for the purpose of disposing of obsolete or worthless assets in the Ordinary Course, (C) pursuant to a non-exclusive license or other grant of rights in Business Intellectual Property in the Ordinary Course, or (D) the abandonment, forfeiture, dedication to the public, non-maintenance of, or other discontinuance of the exercise of, ownership and control of any non-material Business Intellectual Property in the Ordinary Course);
(vii) do any act or knowingly omit to do any act whereby any material Business Intellectual Property may become invalidated, abandoned, 65 unmaintained, unenforceable or dedicated to the public domain, in each case, other than in the Ordinary Course;
(viii) subject to clauses (xi) and (xii) below, other than in the Ordinary Course, (A) cancel or compromise any material Indebtedness or claim or (B) waive or release any material right of any Purchased Subsidiary or Seller, in each case, to the extent relating to the Business or the Purchased Assets;
(ix) enter into any commitment for capital expenditures of any Purchased Subsidiary or Seller (to the extent it would be an Assumed Liability) that is not contemplated by the capital expenditure budget set forth in Section 7.2(b)(ix) of the Disclosure Letter in excess of $100,000 for any individual commitment and $250,000 for all commitments in the aggregate;
(x) enter into, modify or terminate any labor, collective bargaining or works council agreement of any Purchased Subsidiary or Seller (to the extent related to Business Employees);
(xi) except with respect to Consolidated Income Taxes or any Consolidated Tax Return, in each case with respect to the Business or any of the Purchased Subsidiaries, (A) make, change or revoke any material Tax election, (B) settle or compromise any material Tax claim or Liability, (C) waive or extend, in respect of Taxes or any Tax Return, any statute of limitations or period within which a Tax Return may be filed or an assessment or reassessment of Taxes may be issued (other than pursuant to extensions of time to file Tax Returns obtained in the ordinary course of business), (D) file any amended Separate Tax Return or (E) pay surrender any claim for a refund of Taxes. For the avoidance of doubt, Seller shall not make or make cause to be made any dividend “check-the-box” election on IRS Form 8832 with respect to any Purchased Subsidiary other than in respect of Cross UK, which, for the avoidance of doubt, Seller shall be permitted to file a “check-thebox” election to treat it as a disregarded entity effective prior to the Closing Date;
(xii) enter into, amend or distribution modify in any material respect or terminate any Material Contract, or otherwise waive, release or assign any material rights, claims or benefits thereto of cash Seller or other property any Purchased Subsidiary with respect to the units or other equity interests of the CompanyBusiness;
(iixiii) (A) create, incur, assume, guarantee, endorse settle any material Legal Proceeding involving or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related against Seller relating to the Permitted Exceptions, Business or the Purchased Assets or any of the Purchased Subsidiaries;
(xxiv) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy permit any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) Purchased Subsidiary to make any loans, advances of or capital contributions to, or investments in, any other Person;
(iiixv) subject permit any Purchased Subsidiary to create, incur, assume, suffer to exist or otherwise be liable with respect to any Lien or otherwise encumber orIndebtedness, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any other than the incurrence of trade indebtedness in the Purchased AssetsOrdinary Course;
(ivxvi) acquire permit any material properties Purchased Subsidiary to extend credit or assets renew or sell, assign, license, transfer, convey, lease forgive a previously existing extension of credit (either directly or otherwise dispose of any of the Purchased Assets (except for fair consideration indirectly) other than in the Ordinary Course of Business) of the CompanyCourse;
(vxvii) change any methods of accounting, except as provided in Section 6.6 hereof, required by GAAP as agreed to by its independent public accountants;
(xviii) permit any Purchased Subsidiary to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixix) agree to do anything (A) take any of the actions prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2.
Appears in 1 contract
Samples: Asset Purchase Agreement (Costa Inc)
Conduct of the Business Pending the Closing. (a) Except (i) as otherwise expressly provided contemplated by this Agreement Agreement, (ii) as set forth on Schedule 6.2(a), (iii) as Purchaser may consent in writing (which consent shall not be unreasonably withheld, conditioned or with delayed) and (iv) to the prior written consent extent prohibited by applicable Law or the regulations or requirements of Newcoany stock exchange or regulatory organization applicable to the Company, between the date hereof and the ClosingPurchased Companies or their Subsidiaries, the Company shall, and shall cause the Purchased Companies and their Subsidiaries to:
(i) conduct the Business respective businesses of the Company, the Purchased Companies and their Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers including, without limitation, management and Employeesthe sales force) 37 and goodwill of the Company Company, the Purchased Companies and their Subsidiaries and (B) preserve the its present relationships relationship with Persons having business dealings with the Company (including customers Company, the Purchased Companies and suppliers)their Subsidiaries;
(iiiA) maintain (A) all of the assets and properties of, or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company Company, the Purchased Companies and their Subsidiaries in their current condition, ordinary wear and tear excepted and (B) maintain (to the extent available) insurance upon all of the properties and assets of the Company, the Purchased Companies and their Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records of the Company Company, the Purchased Companies and their Subsidiaries in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting discounting, deferring or accelerating payment of such accounts or Liabilities utilizing all available cash except for such actions taken in the Ordinary Course of Business that individually, and any available line of creditin the aggregate, are not material, and (C) use its commercially reasonable efforts to comply with all contractual and other obligations applicable to the operation of the Company;, the Purchased Companies and their Subsidiaries; and
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable laws, including, without limitation, Environmental Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided permitted by this Agreement or with as provided on Schedule 6.2(b), and except to the extent required by applicable Law or the regulations or requirements of any stock exchange or regulatory organization applicable to the Company, the Purchased Companies or their Subsidiaries, the Company shall not, and shall cause the Purchased Companies and their Subsidiaries not to (without the prior written consent of Newcothe Purchaser, the Company which consent shall not:not be unreasonably withheld, conditioned or delayed):
(i) (A) increase the salary declare, set aside, make or pay any dividend or other compensation distribution in respect of the capital stock of the Company, any of the Purchased Companies or any Subsidiaries, other than dividends or distributions by a wholly-owned subsidiary of a Purchased Company to such Purchased Company (or other than in connection with compliance with Section 6.16), or (B) other than pursuant to existing written Contracts listed on Schedule 6.2(b)(i), repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company, the Purchased Companies and their Subsidiaries;
(ii) transfer, issue, sell or dispose of any director shares of capital stock or Employee other securities of the Company, the Purchased Companies or any of their Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company, the Purchased Companies or any of their Subsidiaries, except that the Company except for normal year-end increases may (A) grant stock options under the Company Stock Plans in the Ordinary Course of Business; (B) issue shares of Company Common Stock pursuant to the ESPP and upon the exercise of options outstanding on the date hereof (or that are granted or issued after the date of this Agreement in compliance with this Agreement) under the Company Stock Plans; and (C) issue shares of Company Common Stock upon the exercise of Warrants or conversion of Convertible Securities;
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company, the Purchased Companies or any of their Subsidiaries;
(iv) amend the certificate of incorporation, articles of association, bylaws or other organizational documents of the Company, the Purchased Companies or any of their Subsidiaries;
(A) increase the annual level of compensation (including equity compensation, whether payable in cash, stock or other property) of any employee, director or consultant of the Company, the Purchased Companies or any of their Subsidiaries, (B) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employeesemployees, agents or representatives of the Company Company, the Purchased Companies or any of their Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (D) enter into any employmentemployment (other than to the extent providing for "at-will" employment and without severance), deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company Company, the Purchased Companies or any of their Subsidiaries is a party; party or (E) pay involving a director, officer or make any dividend or distribution of cash or other property with respect to the units or other equity interests employee of the Company, the Purchased Companies or any of their Subsidiaries in his or her capacity as a director, officer or employee of the Company, the Purchased Companies or any of their Subsidiaries; provided, however, that notwithstanding the foregoing, the Company may amend the Company Stock Plans to accelerate the vesting of options issued under the Company Stock Plans in connection with the Transaction;
(iivi) (A) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness for trade payables incurred in the Ordinary Course of Business since and amounts outstanding under existing credit facilities as of the Balance Sheet Datedate of this Agreement, borrow monies for any reason or draw down on any line of credit or debt obligation, or become the guarantor, surety, endorser or otherwise liable for any debt, obligation or liability (zcontingent or otherwise) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person; provided that the Purchased Companies and their Subsidiaries may borrow or draw down under existing credit facilities so long as the aggregate principal amount outstanding thereunder as of the Effective Time does not exceed the amount outstanding thereunder as of the date of this Agreement;
(iiivii) subject to any Lien or otherwise encumber or, (except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumberedExceptions and leases that do not materially impair the use of the property subject thereto in their respective businesses as presently conducted), any of the properties or assets (whether tangible or intangible) of the Company, the Purchased AssetsCompanies or any of their Subsidiaries;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the material properties or assets of the Company, the Purchased Assets (Companies and their Subsidiaries except for fair consideration sales of products to customers in the Ordinary Course of Business; provided, however, that the Company may sell, transfer or convey its shares of capital stock of Metron Technology (Hong Kong) Limited, Metron Technology (Far East) Limited or Metron Technology (Nordic) AB to one or more Purchased Companies or Subsidiaries selected in consultation with the Purchaser (it being understood that, effective upon such sale, assignment, transfer or conveyance, the entity whose shares have been sold, assigned, transferred or conveyed shall be deemed, for purposes of the this Agreement, to be a "Subsidiary" and not a "Purchased Company;").
(v) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any Person;
(viix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company Company, the Purchased Companies or any of their Subsidiaries except pursuant to existing Contracts listed in the Ordinary Course of BusinessSchedule 6.2(b)(ix);
(viix) enter into any commitment for capital expenditures of the Company, the Purchased Companies and their Subsidiaries in excess of $25,000 for any individual commitment and $250,000 per quarter for all commitments in the aggregate;
(xi) enter into, modify or terminate any labor or collective bargaining agreement of the Company, the Purchased Companies or any of their Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company, the Purchased Companies or any Employeeof their Subsidiaries;
(viiixii) introduce any material change with respect to the operation of the BusinessCompany, the Purchased Companies or any of their Subsidiaries, including any material change in the types, nature, composition or quality of its products or services, take any action to cause any material change in any contribution of its product or service lines to its revenues or net income, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ixxiii) permit the Company, the Purchased Companies or any of their Subsidiaries to enter into any transaction or to make or enter into, modify or renew into any Contract which by reason of its size size, nature or otherwise is not in the Ordinary Course of Business;
(xxiv) permit the Company, the Purchased Companies or any of their Subsidiaries to enter into or agree to enter into any merger or consolidation with, any corporation or other entity, or engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities of any other Person;
(xv) enter into any ContractContract or transaction between the Company on one hand and any Purchased Company or their Subsidiaries on the other hand;
(xvi) (A) make or rescind any election relating to Taxes, understanding settle or compromise any claim, action, suit, litigation, proceeding, arbitration, investigation, audit controversy relating to Taxes or (B) except as required by applicable law or GAAP, make any change to any of its Tax or reporting or accounting practices, methods or policies;
(xvii) enter into any contract or agreement or commitment that which restrains, restricts, limits or impedes the ability of the BusinessCompany, the Purchased Companies or the ability any of Newco or Purchaser, their Subsidiaries to compete with or conduct any business or line of business in any geographic area or solicit the employment of any personsarea;
(xixviii) terminatechange its fiscal year, amendrevalue any of its assets or except as required under GAAP or applicable Law, restatemake any changes in financial accounting methods, supplement principles or waive practices except as required by GAAP or by a Governmental Body and as concurred to by the Company's independent public accountants;
(xix) commence or settle any rights under Legal Proceeding;
(xx) enter into any (A) Contract that if in effect as of the date hereof would be a Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability Contracts of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts type set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this AgreementSchedule 6.2(b)(xx); or
(xviixxi) agree to do anything (A) prohibited by this Section 6.2, (B) that 6.2 or anything which would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could reasonably be expected to result in any of the conditions to the Closing condition set forth in Section 7.2(a) not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Companysatisfied.
Appears in 1 contract
Samples: Stock and Asset Purchase Agreement (Fsi International Inc)
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided by in this Agreement or with the prior written consent of NewcoPurchasers, which consent shall not be unreasonably conditioned, withheld or delayed, between the date hereof and the Closing, the Company shall:
(i) conduct the Business business of the Company only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the present business operations, organization (including officers and Key Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business dealings with the Company (including customers and suppliers);
(iii) maintain (A) all of the material assets and properties of, or used by, the Company consistent with past practicein their current condition, ordinary wear and tear excepted, and (B) insurance upon all of the properties and assets and properties of the Company in such amounts and the Ordinary Course of such kinds comparable to that in effect on the date of this AgreementBusiness;
(iv) (A) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of creditBusiness, and (C) comply in all material respects with all contractual and other obligations of the CompanyCompany under its Contracts;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v)fiscal year 2010, including making such capital expenditures in the amounts and at the times set forth in such plan;; and
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except (w) as otherwise expressly provided in this Agreement, the other Transaction Documents, the Disclosure Documents or the Supplemental MB Letter Agreement, (x) the issuance of Common Stock in connection with the transactions contemplated by the Disclosure Documents, (y) as necessary to declare, pay and otherwise effect the Common Dividend and payment of expenses incurred by the Company and Purchasers in connection with the transactions contemplated by this Agreement (including, without limitation, the fees contemplated by Subsections 9.6 and 9.7), the other Transaction Documents or the Disclosure Documents, or (z) with the prior written consent of NewcoPurchasers, which consent shall not be unreasonably conditioned, withheld or delayed, the Company shall not:
(i) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of, or other ownership interests in, the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company;
(ii) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or other ownership interests in, the Company or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of, or other ownership interests in, the Company;
(iii) effect any recapitalization, reclassification, stock split, combination or like change in the capitalization of the Company, or amend the terms of any outstanding securities of the Company;
(iv) amend the Articles of Incorporation or Bylaws of the Company except pursuant to the Restated Articles and the Amended and Restated Bylaws;
(v) except as required to comply with applicable Laws or as otherwise required under the applicable Company Plan as of the date hereof, or except as set forth in Subsection 4.2(b) of the Disclosure Schedule or in the Disclosure Documents, (A) increase the salary salary, wages or other compensation of any director or director, officer, consultant, Key Employee of the Company except for normal year-end increases or, other than in the Ordinary Course of Business, employee, of the Company, (B) grant any unusual or extraordinary bonus, benefit equity awards, fringe benefit, severance, or other direct or indirect compensation to any Employee current or former director, officer, employee or consultant of the Company, (C) increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, forCompany Plan, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement (D) adopt, enter into into, terminate, amend, fund or secure any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition Company Plan or similar agreement or any other arrangement with any directors or officers that would be a Company Plan if in effect on the date of the Company (or amend any such agreement) to which the Company is a party; or (E) pay or make any dividend or distribution of cash or other property with respect to the units or other equity interests of the Companythis Agreement;
(iivi) (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness Indebtedness, except (u) the Indebtedness related with respect to the Permitted Exceptionspayment of the Common Dividend, (x) the Indebtedness reflected in fee contemplated by the Balance Sheet, (y) Supplemental MB Letter Agreement and the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5fees and expenses contemplated by Subsections 9.6 and 9.7); (B) except in the Ordinary Course of Business, pay, prepay, acceleraterepay, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by of the Company; or (C) materially modify the terms of any Indebtedness or other Liability; Liability other than as a result of the satisfaction of the condition set forth in Subsection 5.14 or (D) make any loans, advances in connection with the repayment and termination of capital contributions to, or investments in, any other Personthe Xxxxxxx Loan;
(iiivii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible) of, or used by, the Company;
(ivviii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration material properties or assets of, or used by, the Company, other than in the Ordinary Course of Business) of the Company;
(vix) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, advance or capital contribution to, or otherwise acquire the securities securities, of any other Person;
(vix) cancel or compromise any debt or claim, claim or waive or release any material right of the Company except in the Ordinary Course of Business;
(viixi) enter into, modify or terminate any labor or collective bargaining agreement of the Company or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to any Employeethe Company;
(viiixii) introduce any material change with respect to the operation except (A) as set forth in Subsection 4.2(b) of the BusinessDisclosure Schedule, including any material change in the types, nature, composition or quality and (B) for transfers of products or services, or, other than cash pursuant to normal cash management practices in the Ordinary Course of Business, make any change investments in product specifications or prices loans to, or terms pay any fees or expenses to, or enter into or modify any Contract with any of distributions of such productsthe Company’s Shareholders or their respective Affiliates;
(ixxiii) enter into make any transaction change in its accounting or enter intoTax reporting principles, modify methods or renew any Contract which policies other than those required by reason of its size GAAP or otherwise is not in the Ordinary Course of Businessapplicable Law;
(xxiv) except with respect to the matters set forth in Subsection 4.2(b) of the Disclosure Schedule (i) make, change or revoke any Tax election, settle or compromise any Tax claim or liability or enter into a settlement or compromise, or change (or make a request to any taxing authority to change) any material aspect of its method of accounting for Tax purposes, or (ii) prepare or file any Tax Return (or any amendment thereof) unless such Tax Return shall have been prepared in a manner consistent with past practice;
(xv) except with respect to permitted use restrictions set forth in real property leases to be entered into by the Company, enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, Company to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xixvi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permitmaterial Permit of the Company;
(xiixvii) except with respect to the matters set forth in Subsection 4.2(b) of the Disclosure Schedule, settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
; provided, that in no event shall any such settlement or compromise (xiiiincluding with respect to the matters set forth in Subsection 4.2(b) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xvDisclosure Schedule) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth impose any equitable remedy on the Balance Sheet except Company that would restrict the Company from operating its business in the Ordinary Course of Business under loan Business;
(xviii) fail to pay any required maintenance or credit agreements other similar fees or arrangements up otherwise fail to make required filings or payments required to maintain and further prosecute any applications for registration of Intellectual Property, in each case, which would reasonably be expected to be material to the maximum amounts and other terms as in effect on the date of this AgreementCompany; orand
(xviixix) knowingly agree to do anything (A) prohibited by this Section 6.2Subsection 4.2, (B) that which would make any of the representations and warranties of the Company in this Agreement or any of the Company Transaction Documents untrue or incorrect in any material respect or could would result in any of the conditions to the Closing not being satisfied or (C) that could would reasonably be reasonably expected to have a Material Adverse Effect with respect to the CompanyEffect.
Appears in 1 contract
Conduct of the Business Pending the Closing. (a) Except as otherwise expressly provided contemplated by this Agreement or permitted with the prior written consent of NewcoParent (which consent is sufficient if evidenced by an email from Parent's chief executive officer, between chief financial officer or chief legal counsel or otherwise required by Law or Order, during the period from the date hereof and of this Agreement to the ClosingEffective Time, the Company shall, and shall cause the Company Subsidiaries to:
(i) conduct the Business respective businesses of the Company and the Company Subsidiaries only in the Ordinary Course of Business;
(ii) use its commercially reasonable efforts to (A) preserve the its present business operations, organization (including officers and Employees) and goodwill of the Company and the Company Subsidiaries and (B) preserve the its present relationships relationship with Persons having material business dealings with the Company (including customers and suppliers)the Company Subsidiaries;
(iii) use its commercially reasonable efforts to maintain (A) all of the material assets and properties of, or used by, of the Company consistent with past practiceand the Company Subsidiaries in their current condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets and properties of the Company and the Company Subsidiaries in such amounts and of such kinds comparable to that in effect on the date of this Agreement;
(iv) (A) maintain the books, accounts and records give all required notices of the Company in the Ordinary Course of Business, (B) continue transactions contemplated by this Agreement and use its commercially reasonable efforts to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing obtain all available cash and any available line of credit, and (C) comply with all contractual and other obligations of third party consents material to the Company's business that are necessary or advisable in order to consummate the transactions contemplated by this Agreement;
(v) comply with not take any action which would reasonably be expected to adversely affect the capital expenditure plan ability of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in parties to consummate the amounts and at the times set forth in such plantransactions contemplated by this Agreement;
(vi) comply in all material respects with all applicable Laws;at the Parent's request, take reasonable steps to terminate any Company Plan that is intended to be qualified under Section 401(a) and (k) of the Code, such plan termination to become effective before the Effective Time; and
(vii) take steps to renew provide Parent with all Permits in a timely manner Tax Returns of the Company and the Company Subsidiaries at least twenty (20) days prior to their lapse; and
(viii) pay all maintenance due date for Parent's review and similar fees and take all other appropriate actions as necessary to prevent the abandonmentconsent, loss or impairment of all Intellectual Property of the Companywhich consent shall not be unreasonably withheld.
(b) Without limiting the generality of the foregoing, except Except as otherwise expressly provided by in this Agreement or permitted with the prior written consent of NewcoParent (which consent shall not be unreasonably withheld or delayed, and is sufficient if evidenced by an email from Parent's chief executive officer, chief financial officer or chief legal counsel) or otherwise required by Law or Order, during the period from the date of this Agreement to the Effective Time, the Company shall notnot and shall not permit the Company Subsidiaries to:
(i) except to the extent required by the Company's currently effective certificate of incorporation, declare, set aside, make or pay any dividend or other distribution (whether in cash, stock or property) in respect of the capital stock of the Company or repurchase, redeem or otherwise acquire any outstanding shares of the capital stock or other securities of, or other ownership interests in, the Company or any of the Company Subsidiaries, except in connection with the exercise of repurchase rights or rights of first refusal in favor of the Company with respect to shares of Common Stock;
(ii) transfer, issue, sell or dispose of any shares of capital stock or other securities of the Company or any of the Company Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire shares of the capital stock or other securities of the Company or any of the Company Subsidiaries, except pursuant to obligations existing on the date of this Agreement and previously disclosed to Parent provided, however, that the Company shall be permitted to issue for cash, equity securities of the Company or convertible debt instruments that convert automatically into equity of the Company at the Closing or warrants to purchase equity of the Company that terminate upon the Closing, if and only if (A) the investors acquiring such securities consent to the terms of the Merger and do not have any right to prohibit or delay consummation of the Merger, (B) the terms of such financing are commercially reasonable, and the terms and all documents relating thereto are provided to Parent sufficiently in advance of consummating such financing, (C) Parent shall have declined to provide such financing and (D) the aggregate amount of equity and debt raised does not exceed $3,500,000; provided, however, that if the Closing has not occurred on or prior to May 31, 2007, this amount shall be increased to $7,000,000.
(iii) effect any recapitalization, reclassification, stock split or like change in the capitalization of the Company or any of the Company Subsidiaries;
(iv) (A) increase the salary or other annual level of compensation of any director or Employee employee of the Company except for normal year-end increases in or any of the Ordinary Course of BusinessCompany Subsidiaries, (B) increase the annual level of compensation payable or to become payable by the Company or any of the Company Subsidiaries to any of their respective executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee employee, director or directorconsultant, (CD) increase the coverage or benefits available under any Company Plan (or create any newnew similar plan) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives of the Company or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any collective bargaining, employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which the Company or any of the Company Subsidiaries is a party; party or (E) pay involving a current or make any dividend former director, officer or distribution of cash or other property with respect to the units or other equity interests employee of the CompanyCompany or any of the Company Subsidiaries;
(v) incur or assume any Indebtedness (other than existing Indebtedness or as provided in clause (ii) above);
(Avi) create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the for Permitted Exceptions, (x) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, or permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assetsproperties or assets (whether tangible or intangible), or any shares of capital stock of the Company or any of the Company Subsidiaries;
(ivvii) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets (except for fair consideration in the Ordinary Course of Business) material properties or assets of the CompanyCompany and the Company Subsidiaries, including Intellectual Property;
(vviii) except as provided in Section 6.6 hereof, enter into or agree to enter into any merger or consolidation with with, any Personcorporation or other entity, and not engage in any new business or invest in, make a loan, material advance or capital contribution to, or otherwise acquire the securities of any other Person, except in connection with the exercise of repurchase rights or rights of first refusal in favor of the Company with respect to shares of Common Stock;
(viix) cancel or compromise any material debt or claim, claim or waive or release any material right of the Company or any of the Company Subsidiaries except in the Ordinary Course of BusinessBusiness and except for the extension of the maturity date under the Convertible Promissory Notes issued by the Company in September and October 2006;
(viix) enter into any commitment for capital expenditures of the Company and its Subsidiaries in excess of $50,000 for any individual commitment and $100,000 for all commitments in the aggregate;
(xi) enter into, modify or terminate any labor or collective bargaining agreement of the Company or any of its Subsidiaries or, through negotiation or otherwise, make any commitment or incur any Liability liability to any labor organization with respect to the Company or any Employeeof its Subsidiaries;
(viiixii) introduce permit the Company or any of the Company Subsidiaries to enter into any transaction or to enter into, modify or renew any Contract which would be a Material Contract if entered into prior to the date hereof or that would reasonably be expected to have a Material Adverse Effect;
(xiii) except for transfers of cash pursuant to normal cash management practices in the Ordinary Course of Business, permit the Company or any of the Company Subsidiaries to make any investments in or loans to, or pay any fees or expenses to (other than pursuant to existing Contracts or policies), or enter into or materially modify any Contract with any Affiliate of the Company or any of the Company Subsidiaries, or any director, officer or employee of the Company or any of the Company Subsidiaries (other than Contracts with new employees in the Ordinary Course of Business);
(xiv) make or revoke any material election in respect of Taxes, change any accounting method in respect of material Taxes, prepare any Tax Return in a manner which is not consistent with past practice with respect to the operation treatment of items on such Tax Return, file any amendment to a Tax Return that will or may more than immaterially increase the liability of the BusinessCompany or any Company Subsidiary after the Closing, including incur any material change in the types, nature, composition or quality of products or services, or, liability for Taxes other than in the Ordinary Course of Business, make settle any change material claim or assessment in product specifications respect of Taxes, or prices consent to any extension or terms waiver of distributions the limitation period applicable to any material claim or assessment in respect of such productsTaxes or surrender any right to claim a refund of Taxes or obtain or enter into any Tax ruling or agreement with any Taxing Authority;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(xxv) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, Company or the ability of Newco or Purchaser, any Company Subsidiary to compete with or conduct any business or line of business in any geographic area or solicit the employment of enter into, modify, amend or terminate any personsContract which if so entered into, modified, amended or terminated would be reasonably be expected to have a Material Adverse Effect;
(xixvi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease Contract or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or Permit that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreementhave a Material Adverse Effect; orand
(xvii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2.
Appears in 1 contract
Conduct of the Business Pending the Closing. From the date hereof and until the Closing, except (aA) Except as set forth on Schedule 7.2, (B) as required by applicable Law, (C) as otherwise expressly provided contemplated by this Agreement or (D) with the prior written consent of NewcoPurchaser (which consent shall not be unreasonably withheld, between delayed or conditioned):
(a) Seller shall cause each of the date hereof Companies and the Closing, the Company shallSubsidiaries to:
(i) conduct the Business its respective business only in the Ordinary Course of Business;; and
(ii) use its commercially reasonable efforts to (A) preserve the its present business business, operations, organization (including officers and Employees) and goodwill of the Company and (B) preserve the its present relationships with Persons having business dealings with the Company (including customers and suppliers).
(b) Seller shall not and shall cause the Companies and the Subsidiaries not to:
(i) declare, set aside, make or pay any dividend or other distribution (other than cash) in respect of the equity interests in the Companies or repurchase, redeem or otherwise acquire any outstanding units of membership interest or other ownership interests in, any of the Companies or the Subsidiaries;
(ii) transfer, issue, sell or dispose of any equity interest or other securities of any of the Companies or the Subsidiaries or grant options, warrants, calls or other rights to purchase or otherwise acquire equity interests or other securities of any of the Companies or the Subsidiaries;
(iii) maintain (A) all effect any recapitalization, reclassification or like change in the capitalization of any of the assets and properties of, Companies or used by, the Company consistent with past practice, and (B) insurance upon all of the assets and properties of the Company in such amounts and of such kinds comparable to that in effect on the date of this AgreementSubsidiaries;
(iv) amend the certificate of formation or LLC Agreement or the certificate of incorporation or bylaws of KUS or comparable organizational documents of any Subsidiary;
(Av) maintain the books, accounts and records of the Company in the Ordinary Course of Business, (B) continue to collect accounts receivable and pay accounts payable and other Liabilities set forth on the Balance Sheet than in the Ordinary Course of Business utilizing normal procedures and without discounting or accelerating payment of such accounts or Liabilities utilizing all available cash and any available line of credit, and (C) comply with all contractual and other obligations of the Company;
(v) comply with the capital expenditure plan of the Company for 2009 set forth on Company Disclosure Schedule 6.2(a)(v), including making such capital expenditures in the amounts and at the times set forth in such plan;
(vi) comply in all material respects with all applicable Laws;
(vii) take steps to renew all Permits in a timely manner prior to their lapse; and
(viii) pay all maintenance and similar fees and take all other appropriate actions as necessary to prevent the abandonment, loss or impairment of all Intellectual Property of the Company.
(b) Without limiting the generality of the foregoing, except as otherwise expressly provided by this Agreement or with the prior written consent of Newco, the Company shall not:
(i) (A) materially increase the salary or other annual level of compensation of any director or Employee executive officer of any of the Company except for normal year-end increases in Companies or the Ordinary Course of BusinessSubsidiaries, (B) materially increase the annual level of compensation payable or to become payable by any of the Companies or the Subsidiaries to any of their respective executive officers, (C) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any Employee or directorexecutive officer, (CD) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, Employees, agents or representatives executive officers of any of the Company Companies or the Subsidiaries or otherwise modify or amend or terminate any such plan or arrangement or (DE) enter into any employment, deferred compensation, stay bonus, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company (or amend any such agreement) to which any of the Company Companies or the Subsidiaries is a party; or (E) pay or make party and involving an executive officer of any dividend or distribution of cash or other property with respect to the units or other equity interests of the CompanyCompanies or the Subsidiaries, except, in each case, as required by applicable Law from time to time in effect or by the terms of any Company Benefit Plans;
(iivi) (A) create, incur, assume, guarantee, endorse subject any of the properties or otherwise become liable or responsible with respect to assets (whether directlytangible or intangible) of any of the Companies or the Subsidiaries to any Lien, contingently or otherwise) any Indebtedness except (u) the Indebtedness related to the for Permitted Exceptions, ;
(xvii) the Indebtedness reflected in the Balance Sheet, (y) the Indebtedness incurred in the Ordinary Course of Business since the Balance Sheet Date, or (z) the Indebtedness set forth on Company Disclosure Schedule 4.5; (B) except other than in the Ordinary Course of Business, pay, prepay, accelerate, discharge, purchase, repurchase or satisfy any Indebtedness issued or guaranteed by the Company; (C) materially modify the terms of any Indebtedness or other Liability; or (D) make any loans, advances of capital contributions to, or investments in, any other Person;
(iii) subject to any Lien or otherwise encumber or, except for Permitted Exceptions, permit, allow or suffer to be subjected to any Lien or otherwise encumbered, any of the Purchased Assets;
(iv) acquire any material properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of the Purchased Assets material properties or assets of any of the Companies or the Subsidiaries;
(except for fair consideration viii) other than in the Ordinary Course of Business) , cancel or compromise any material debt or claim of any of the CompanyCompanies or the Subsidiaries;
(vix) except as provided enter into any commitment for capital expenditures of any of the Companies or the Subsidiaries in Section 6.6 hereofexcess of $4,000,000 for all commitments in the aggregate, other than reasonable capital expenditures in connection with any emergency or force majeure events affecting any of the Companies or the Subsidiaries;
(x) enter into, modify or terminate any labor or collective bargaining agreement of any of the Companies or the Subsidiaries or, through negotiations or otherwise, make any commitment or incur any liability to any labor organizations;
(xi) permit any of the Companies or the Subsidiaries to enter into or agree to enter into any merger or consolidation with any Person, and not engage in any new business corporation or invest in, make a loan, advance or capital contribution toother entity, or otherwise acquire the securities of any other Person;
(vi) cancel or compromise any debt or claim, or waive or release any material right of the Company except in the Ordinary Course of Business;
(vii) enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any Liability to any labor organization with respect to any Employee;
(viii) introduce any material change with respect to the operation of the Business, including any material change in the types, nature, composition or quality of products or services, or, other than in the Ordinary Course of Business, make any change in product specifications or prices or terms of distributions of such products;
(ix) enter into any transaction or enter into, modify or renew any Contract which by reason of its size or otherwise is not in the Ordinary Course of Business;
(x) enter into any Contract, understanding or commitment that restrains, restricts, limits or impedes the ability of the Business, or the ability of Newco or Purchaser, to compete with or conduct any business or line of business in any geographic area or solicit the employment of any persons;
(xi) terminate, amend, restate, supplement or waive any rights under any (A) Material Contract, Real Property Lease, Personal Property Lease or Intellectual Property License, other than in the Ordinary Course of Business or (B) Permit;
(xii) settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or in the aggregate, reasonably be expected to be greater than $50,000;
(xiii) change or modify its credit, collection or payment policies, procedures or practices, including acceleration of collections or receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities;
(xiv) take any action which would adversely affect the ability of the parties to consummate the transactions contemplated by this Agreement;
(xv) amend the operating agreement of the Company;
(xvi) agree to materially increase Liabilities from the amounts set forth on the Balance Sheet except in the Ordinary Course of Business under loan or credit agreements or arrangements up to the maximum amounts and other terms as in effect on the date of this Agreement; or
(xviixii) agree to do anything (A) prohibited by this Section 6.2, (B) that would make any of the representations and warranties of the Company in this Agreement or any of the Company Documents untrue or incorrect in any material respect or could result in any of the conditions to the Closing not being satisfied or (C) that could be reasonably expected to have a Material Adverse Effect with respect to the Company7.2(b).
Appears in 1 contract
Samples: Limited Liability Company Membership Interest and Stock Purchase Agreement (Oneok Inc /New/)