Common use of Conduct of the Business Clause in Contracts

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on the Business in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Neophotonics Corp), Asset Purchase Agreement (Emcore Corp)

AutoNDA by SimpleDocs

Conduct of the Business. From (a) During the period from the date of this Agreement until to the earlier of the Closing (or until and the earlier termination of date this Agreement is terminated in accordance with Section 11.112.1 (the “Interim Period”), except as expressly required by applicable Lawwould not, as set forth on Schedule 7.1 of individually or in the Seller Disclosure Scheduleaggregate, have a Material Adverse Effect, as contemplated by or required to implement permitted under this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing required by Purchaser Law, with the written consent of Buyer (which consent shall not be unreasonably withheldconditioned, conditioned withheld or delayed), or as set forth on Schedule 6.1(a), Seller shallParties shall cause the Company and its Subsidiaries to use commercially reasonable efforts to conduct the Business only in the Ordinary Course. (b) During the Interim Period, except as would not, individually or in the aggregate, have a Material Adverse Effect, as contemplated or permitted under this Agreement, as required by Law, with the written consent of Buyer (which consent shall not be unreasonably conditioned, withheld or delayed), or as set forth on Schedule 6.1(b), Seller Parties shall cause the Company and its Subsidiaries not to: (ai) operate and carry on the Business other than in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts custom and practice associated with companies engaged in similarly situated businesses as the Business, sell, lease, license or otherwise transfer any tangible assets that are material, individually or in the aggregate, to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (cii) continue to maintain make any material changes in management personnel or increase the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose compensation level of any Purchased Assetsmanagement employee, other than the sale of Inventory officer or director, except as required by any existing Contract or Employee Benefit Plan and other dispositions of assets except for normal changes or increases in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current custom and practice associated with companies engaged in full force and effect or renew any of the material Permits related to similarly situated businesses as the Business; (miii) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practicecommercially reasonable custom and practice associated with companies engaged in similarly situated businesses as the Business, enter into any new capital spending commitments in excess of $50,000 in consideration in the aggregate; (piv) comply in all material respects terminate or cancel any of the insurance policies set forth on Schedule 4.19, unless simultaneously with all Laws applicable such termination or cancellation, a replacement policy providing coverage at least equal to the Business andcoverage under the terminated or canceled insurance policy for a substantially similar premium is in full force and effect; (v) except as required (A) to comply with applicable Law, promptly following receipt thereof(B) to maintain qualification under Section 401(a) of the Code, give to or (C) under the Purchaser copies provisions of any notice received from Employee Benefit Plan, adopt, amend, modify, terminate, or make any Governmental Authority contributions to any Employee Benefit Plan; (vi) amend its articles of incorporation, bylaws or other Person alleging any violation of any such Laws; and (q) not take any material actions governing documents in a manner that could reasonably be expected to delay have an adverse effect on Buyer or the Closing; provided, howevertransactions contemplated by this Agreement; (vii) incur any Indebtedness or guarantee any Indebtedness, except for borrowings incurred in the Ordinary Course; (viii) repurchase or redeem any of the Shares or any Equity Interests of any Subsidiary of the Company; (ix) issue, sell or grant any additional Equity Interests; (x) other than the acquisition of inventory in the ordinary course of business consistent with commercially reasonable custom and practice associated with companies engaged in similarly situated businesses as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply acquire, or agree to acquire, by merging or consolidating with, or by purchasing a substantial portion of the assets of, or by any other manner, any business or any corporation, partnership, joint venture, association or other business organization or division thereof; (xi) enter into any material transaction with any Affiliate not dealing at arm’s length with the terms Company or any of its Subsidiaries; or (xii) enter into a Contract, or otherwise agree or commit, to take any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing actions.

Appears in 2 contracts

Samples: Stock Purchase Agreement (Hawkeye Systems, Inc.), Stock Purchase Agreement (Hawkeye Systems, Inc.)

Conduct of the Business. (a) From the date of this Agreement until the Closing (or hereof until the earlier of the Closing Date or the termination of this Agreement in accordance with Section 11.1)Agreement, except (1) as expressly contemplated or permitted hereunder, (2) as required by applicable LawLaws, (3) upon prior written consent of Buyer or (4) as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall6.01: (ai) operate The Sellers shall cause the Company and carry on its Subsidiaries to (A) conduct the Business only in the ordinary course of business consistent with past practice; in substantially the same manner as heretofore conducted and maintain the books of account and records of the Company and its Subsidiaries in the usual and ordinary manner; (bB) use commercially reasonable efforts to preserve substantially intact its business organization, to preserve its present relationships with suppliers, purchasers, jobbers, distributors, contractors, operators, non-operators, royalty owners, employees and other Persons with which it has significant business relations; (C) collect all Receivables and pay all accounts payable in the goodwill ordinary course; (D) maintain in full force and effect substantially the same levels of coverage of insurance with respect to the assets, operations and activities of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller Company and its Affiliates exclusively or primarily related Subsidiaries as are in effect as of the date hereof; (E) maintain in all material respects all of the Oil and Gas Interests, Equipment, structures, vehicles, and other tangible personal property of the Company and its Subsidiaries in their present condition, except for ordinary wear and tear; and (F) with respect to the Business on a basis Oil and Gas Interests, continue operation of the Oil and Gas Interests consistent with past practice; and practices (d) continue to make all necessary or where neither the Company nor its Subsidiaries are the operator of an Oil and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerGas Interest, and will use commercially reasonable efforts to maintain in effect all material Permits required for cause the ongoing operation operator to do so). (ii) The Sellers shall not and shall not permit the Company or any of its Subsidiaries to: (A) issue, sell or deliver any equity securities of the Business as presently conductedCompany or any of its Subsidiaries or issue, sell or deliver any securities convertible into, or options with respect to, or warrants to purchase or rights to subscribe for, any equity securities of the Company or any of its Subsidiaries or enter into any contract or commitment to so issue, sell or deliver; (eB) perform all effect any distribution, recapitalization, reclassification, stock dividend, stock split or like change of Sellerthe Company’s material obligations under the Assigned Contracts in accordance with the terms thereofor any of its Subsidiary’s capitalization; (fC) refrain from makingamend the Company’s or any of its Subsidiary’s certificate or articles of incorporation or bylaws (or other similar constituent documents) or the terms of any outstanding securities of the Company or any of its Subsidiaries; (D) make any redemption, changing purchase of or revoking otherwise acquire any Tax election; refrain from adopting equity securities of the Company or changing any of its Subsidiaries or make any acquisition of stock or other securities of any Person; (E) merge or consolidate with (or enter into any similar business combination transaction) any corporation or other entity; (F) acquire, lease (as lessor or lessee), sell, assign, transfer, or dispose of, or agree to acquire, lease, sell, assign, transfer or otherwise dispose of any assets or rights of the Company and its Subsidiaries in excess of $250,000 individually or in excess of $1,000,000 in the aggregate, except (i) pursuant to existing contracts or commitments disclosed to Buyer or (ii) in the ordinary course; (G) make any investments, including capital contributions, in, or any loan to, any other Person, except (i) pursuant to existing contracts or commitments disclosed to Buyer prior to the date hereof and (ii) other investments and acquisitions not in excess of $250,000; (H) make any capital expenditures or commitments therefor (other than relating to the Oil an Gas Interests) in an aggregate amount exceeding $250,000 or make any commitment for capital expenditure payable in whole or in part after the Closing Date; (I) enter into any transaction with any directors, officers, employees, shareholders, members, managers, agents, Affiliates, family members or Persons acting in a similar capacity, of the Company or any of its Subsidiaries, including transactions relating in any way to employment, compensation, change-in-control, retention, commissions, severance, termination benefits, bonuses, or other remuneration for employment, or otherwise increase or modify the total compensation (base pay and payroll practices) and benefits offered or provided to the employees.; (J) create or permit to exist any Lien on the assets of the Company or its Subsidiaries, other than Permitted Liens and those Liens to be fully released at or prior to the Closing; (K) enter into any agreement that if entered into prior to the date hereof would be a Company Contract, or modify, amend, waive any obligation, fail to renew, assign, or otherwise transfer or terminate any Company Contract or waive, release or assign any rights or claims thereto or thereunder; (L) issue any note, bond or other debt security or create, incur, assume, guaranty or refinance any Indebtedness or any indebtedness of another Person, other than borrowings permitted under the Company’s or any of its Subsidiaries lines of credit as in effect on the date hereof; (M) increase in any manner the base compensation of, or enter into any new bonus or incentive agreement or arrangement with, any of the Company’s or any of its Subsidiary’s employees, officers, directors or consultants, or pay or commit to pay any severance or termination pay to any of the Company’s or any of its Subsidiary’s employees, officers, directors or consultants, except as previously disclosed to Buyer; (N) make or change any material election relating to Taxes, change any annual accounting period, adopt or change any accounting method with respect to Taxes; refrain from filing method, file any amended material Tax Return; refrain from entering , enter into any closing agreement, settling or compromising settle any material Tax claim or assessment; and refrain from consenting assessment relating to the Sellers, the Company, any of its Subsidiaries or predecessors of the foregoing, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment with respect to Taxes; in each case relating to the extent taking Sellers, the Company or any of its Subsidiaries or predecessors of the foregoing, or take any other similar action relating to the filing of any Tax Return or the determination or payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would adversely affect or could have the Purchased Assets effect of increasing the Tax liability of Buyer, the Company or any of the Business in a Post-Company’s Subsidiaries for any period ending after the Closing Date or decreasing any Tax Periodattribute of the Company or any of its Subsidiaries existing on the Closing Date; (gO) pay and discharge all settle or compromise any material Liabilities related to the Purchased Assets as they become due and payable action, suit, litigation or other proceeding, whether administrative, civil or criminal, at law or in the ordinary course of businessequity, subject to the Seller’s ability to pursue in good faith or before any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased AssetsGovernmental Entity, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice, solely for cash and without admitting any liability or incurring any other obligation with respect thereto, in an amount not to exceed, for any such settlement not covered by insurance, $75,000 individually or $250,000 in the aggregate, and any such settlement covered by insurance, $250,000 individually or $500,000 in the aggregate; (iP) not (i) exclusively licensemake any change to any method of accounting or accounting practice, assign policy, principle or transfer any Purchased Business Intellectual Property procedure except as required by GAAP applicable to the Sellers, the Company, its Subsidiaries or any Purchased Business Technology to any Person (including any current or former employee or consultant predecessor of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technologythe foregoing; (jQ) not grant commence or commit to commence operations for the drilling of any allowances or discounts on Products outside new well after the ordinary course date hereof without the prior approval of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businessBuyer; (kR) not manufactureredrill or complete an existing Well included within the Oil and Gas Interests after the date of this Agreement and prior to the Closing Date without providing prior written notice thereof to Buyer; (S) make any nonconsent election with respect to operations affecting the Oil and Gas Interests without prior approval of Buyer; (T) abandon any Well or release or abandon all or any portion of any of the O&G Leases without providing prior written notice thereof to Buyer; (U) agree to any renegotiated price, take or other terms under existing gas purchase agreements without providing prior written notice thereof to Buyer; (V) agree to any credit or prepayment arrangement that would reduce the share of gas deliverable with respect to the Oil and Gas Interests following the Effective Time without providing prior written notice thereof to Buyer; or (W) enter into any purchase commitments agreement or instrument for the sale, treatment, or transportation of production from the Oil and Gas Interests (except for sales agreements terminable on no more than 30 days notice) without providing prior written notice thereof to purchaseBuyer; provided that, Inventory in amounts outside the ordinary course of business;foregoing notwithstanding, the Sellers, the Company and/or their Subsidiaries may use all available cash to repay any Indebtedness prior to the Closing. (lb) use commercially reasonable efforts not fail With respect to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term operations proposed after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller the Company and Purchaser), or terminate the employment its Subsidiaries will advise Buyer of any such employee without causeproposals made by other parties, except and will consult with Buyer concerning such proposals, and will respond in the ordinary course of business consistent with past practice;manner required by Buyer; provided that, if the period for responding to such a proposal extends beyond the Closing Date, the Company and its Subsidiaries will not respond to such proposal unless the Closing does not occur prior to the next to last day allowed to respond (in which case the Company and its Subsidiaries shall respond in the manner they deem prudent). (pc) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaserto Buyer, directly or indirectly, the right to control or direct the Company’s or its Subsidiaries’ operations of Seller or businesses prior to the Closing; provided, the Sellers must comply with and cause the Company to comply with the covenants contained herein.

Appears in 2 contracts

Samples: Contribution and Sale Agreement (Eagle Rock Energy Partners L P), Contribution and Sale Agreement (Eagle Rock Energy Partners L P)

Conduct of the Business. From As of the date of this Agreement until hereof through the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the each Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate conduct its business relating to the Purchased Assets and carry on the Business Assumed Liabilities in the usual, regular and ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (b) use reasonable best efforts to maintain and preserve intact its relationships generally with its Branch Employees and Customers; (c) take no action which would materially adversely affect or delay the ability of any party hereto to obtain any Regulatory Approval or to perform its covenants and agreements under this Agreement; (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required not acquire or dispose of any Fixed Assets for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable Branches except in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances)pursuant to commitments made on or before the date of this Agreement and except for the acquisition and disposition of furniture, fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory fixtures and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); equipment and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices normal maintenance and refurbishing in the ordinary course of business; ; (ke) not manufactureincrease or agree to increase the salary, remuneration or compensation of Branch Employees other than in accordance with Seller’s customary policies and/or bank-wide changes consistent with past practices, or pay or agree to pay any uncommitted bonus to the Branch Employees other than regular bonuses based on historical practice, provided that nothing herein shall be deemed to prohibit Sellers from paying out in their sole discretion accrued but unearned compensation as of the Closing Date for Branch Employees; (f) not enter into any purchase commitments to purchaseinto, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect amend or renew or extend any of the material Permits related to the Business; employment contract; (mg) not amend, modify, cancel change any accounting procedures or terminate any Assigned Contract practices; (other than terminations or expirations at the end of the stated term after the date hereof); (nh) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination paytake, or enter into instruct its affiliates to take, any new employmentaction with the specific intent of (A) impairing Purchaser’s rights in any Purchased Assets or Assumed Liabilities, deferred compensation (B) impairing in any way the ability of Purchaser to collect upon any Loan or similar agreement with any such employee Negative Deposits, (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, C) except in the ordinary course of business consistent servicing, waiving any material right, whether in equity or at law, that (x) it has with past practice; respect to any Loan or Negative Deposits, or (py) comply in all material respects could have a Material Adverse Effect; (i) enter into any contract, commitment, lease or other transaction (other than with all Laws applicable respect to the Business and, promptly following receipt thereof, give Deposit Liabilities or the Loans) relating to the Purchaser copies Branches, which requires aggregate future payments in excess of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing$50,000; provided, however, that Sellers shall be under no obligation to advertise or promote new or substantially new customer services in the principal market area of, or for the benefit of, the Branches; (j) not make, or enter into any commitment to make, a Loan in excess of $250,000, except after consultation with Purchaser, unless the Seller otherwise agrees to retain any such Loans which Purchaser does not want to purchase as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms a result of the Agreement, failure by the Seller to consult with Purchaser; or (k) offer any rates on deposit products (including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, time deposits and certificates of deposit) to Customers at the right to control or direct Branches which differ materially from the operations of Seller prior to Closingrates commonly offered in the Florida marketplace by other local depository institutions where the Branches are located.

Appears in 2 contracts

Samples: Purchase and Assumption Agreement (Cib Marine Bancshares Inc), Purchase and Assumption Agreement (1st United Bancorp, Inc.)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.18.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 Section 4.1 of the Seller Disclosure ScheduleLetter, as specifically contemplated by or this Agreement, including as required to implement this Agreement the Restructuring Steps Plan, as required by the Monitoring Trustee or any Ancillary Agreement, other designated Competition/Investment Law authority or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), with respect to the Business, Seller shallshall cause the Seller Entities and the Purchased Entities (as applicable) to, and shall use its reasonable best efforts to cause Rexam to cause the Rexam Entities to: (a) operate and (i) carry on the portion of the Business controlled by them in all material respects in the ordinary course of business consistent with past practicepractice and (ii) use its commercially reasonable efforts to maintain and preserve the relationships and goodwill of the Business with its customers, suppliers and others having material business dealings with the Business; (b) not grant, create, assume or otherwise incur any Encumbrance (other than a Permitted Encumbrance on Purchased Assets that are not the Interests or the Purchased Affiliate Interests) on any of the Purchased Assets or any assets of any Purchased Entity, other than in the ordinary course of business and other than to the extent such assets will be Excluded Assets; (c) not sell, transfer or dispose of any material Purchased Assets or material assets of any Purchased Entity, other than the sale of Inventory in the ordinary course of business or in accordance with the Restructuring Steps Plan; (d) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller the Business with its customers, vendors, suppliers, Business Employees distributors, landlords and others having material business relations dealings with the Business; (ce) continue not amend the certificate or articles of incorporation or by-laws (or other comparable corporate charter documents) of any of the Purchased Entities or take any action with respect to maintain any such amendment or any recapitalization, reorganization, liquidation or dissolution of any of the BooksPurchased Entities, Records and Files file a petition in bankruptcy under any provisions of bankruptcy Law on behalf of any Purchased Entity, Seller and its Affiliates exclusively Entity or primarily related Rexam Entity or consent to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerfiling of any bankruptcy petition against any Purchased Entity, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereofSeller Entity or Rexam Entity; (f) refrain from makingnot authorize, changing issue, sell, grant or revoking otherwise dispose of any Tax election; refrain from adopting shares of capital stock of or changing any accounting method Option with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable Purchased Entities, or permit any Encumbrances to be imposed on any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodshares; (g) pay and discharge all material Liabilities related (A) not enter into any new Contract that would be a Material Contract under the definition of Material Contract if entered into prior to the date of this Agreement (and that would be a Purchased Assets as they become due Asset and payable Assumed Liability), other than the renewal of a Material Contract in accordance with its terms or in the ordinary course of business, subject business on terms that are not materially less favorable to the Seller’s ability to pursue Business than the terms of the Material Contract being renewed; or (B) not accelerate, terminate, cancel, amend or otherwise modify any Material Contract in good faith any bona fide disputesmaterial respect; (h) not sellincur, leaseassume or guarantee any indebtedness for borrowed money other than (i) in an amount not exceeding $50 million in the aggregate or (ii) indebtedness that will be repaid prior to the Closing; (i) not enter into any hedging arrangement that would be a Purchased Asset or an Assumed Liability that will not be terminated prior to the Closing; (j) not incur any obligations, licenseLiabilities or indebtedness in respect of capital expenditures to be incurred after Closing, transferother than as expressly set forth on Schedule 4.1(j) or in an amount not exceeding $5 million individually or $40 million in the aggregate; (k) not settle, abandonpay, pledgedischarge or satisfy any material Action where such settlement, encumber payment, discharge or satisfaction would impose (i) any Liabilities (other than Permitted Encumbrances)Excluded Liabilities) on the Business or the Purchased Entities in excess of $2 million individually or $10 million in the aggregate or (ii) material restrictions or limitations upon the operation of the Business following the Closing; (l) (A) not abandon, fail to maintain or otherwise dispose of any Purchased Assetsof the Transferred Intellectual Property; and (B) not sell or otherwise dispose of any of the material Seller and Rexam Licensed IP (provided that, for purposes of this Section 4.1(l)(B), the time period limitation in the definition of Seller and Rexam Licensed IP that such Intellectual Property be the applicable Intellectual Property owned by Seller, Rexam or their respective Affiliates as of the Closing Date shall be replaced by such ownership as of the date of this Agreement, it being understood and agreed that, for clarity, all other requirements of such definition shall apply as provided in Section 4.10(a)), other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); selling products and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Businessservices; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent or as required under the terms of any Employee Benefit Plan, Collective Bargaining Agreement, National Collective Bargaining Agreement or applicable Law, not (i) enter into, adopt or materially amend any material compensation or benefit plan, policy, practice, arrangement or agreement for any Business Employee (other than the adoption of or amendment to a compensation or benefit plan, policy, practice, arrangement or agreement that is generally applicable to employees of the Purchased Entities, Seller Entities or Rexam Entities, as applicable), (ii) materially increase the compensation or benefits payable or to become payable to any Business Employee or (iii) grant any new awards, or amend or modify the terms of any outstanding awards, under any Employee Benefit Plan, in each case, as it applies to Business Employees; (n) except as required by applicable Law, as set forth on Schedule 4.1(n), or as otherwise required in the EC Commitments or by the FTC, not transfer or permit to be transferred any Business Employee, or offer any Business Employee the opportunity to transfer, to another business unit of Seller, Rexam or any of their Affiliates or terminate the employment of any Business Employee other than for cause; (o) subject to the outcome of the consultations set out in Section 1.9, not enter into or materially amend any Collective Bargaining Agreement or National Collective Bargaining Agreement (or enter into any other material commitment with past practiceany Employee Representative Body) covering Business Employees; (p) comply in all material respects with all Laws applicable to the Business andextent there would be a material adverse Tax effect on Purchaser or any Purchased Entity in a Post-Closing Tax Period, promptly following receipt thereofnot make, give change or revoke any Tax elections, or change any material method of Tax accounting, file any amended Tax Return or any Tax Return inconsistent with past practices, file any claims for material Tax refunds, enter into any closing agreement or similar agreement with respect to Taxes; settle or compromise any Tax liability or surrender any right to claim a Tax refund, offset or other reduction in Tax liability or change or agree to any change of the Purchaser copies value of any notice received from any Governmental Authority real, personal or intangible property for Tax assessment or other Person alleging any violation of any such LawsTax purposes; and (q) not take enter into an enforceable agreement to do any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 2 contracts

Samples: Equity and Asset Purchase Agreement (Ardagh Finance Holdings S.A.), Equity and Asset Purchase Agreement (Ball Corp)

Conduct of the Business. From the date of this Agreement until the earlier to occur of the Closing (or until and the earlier termination of this Agreement in accordance with Section 11.1)Article IX, except as otherwise expressly required permitted or expressly contemplated by applicable Lawthis Agreement, as set forth on Schedule 7.1 in Section 5.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which such consent shall not to be unreasonably withheld, conditioned or delayed)) or as required by applicable Law, Seller shall: shall cause the other Seller Parties to, and shall use its reasonable best efforts (aincluding by seeking to enforce its rights under the Merger Agreement) operate to cause Tribune and carry on its Subsidiaries to, (i) conduct the Business in all material respects in the ordinary course of business consistent with past practices and use commercially reasonable efforts to cause each of the Station Sharing Companies to conduct the Business in the ordinary course of business consistent with past practice; practices, (bii) use commercially reasonable efforts to maintain the Station Licenses and their respective rights thereunder, (iii) use commercially reasonable efforts to preserve intact in all material respects its current business organization, ongoing businesses and significant relationships with third parties; and (iv) use commercially reasonable efforts to preserve the goodwill relationships of the Business with its Employees in accordance with the ordinary course of business and consistent with past practice. Without limiting the generality of the foregoing, from the date of this Agreement until the earlier to occur of the Closing and the relationships termination of this Agreement in accordance with Article IX, except as otherwise permitted or contemplated by this Agreement, as set forth in Section 5.1 of the Disclosure Schedule, as consented to in writing by Buyer (such consent not to be unreasonably withheld, conditioned or delayed) or as required by applicable Law, Seller shall not, and shall cause its Subsidiaries not to, and shall use reasonable best efforts (including by seeking to enforce its rights under the Merger Agreement) to cause Tribune and its Subsidiaries not to, in each case, solely in respect of the Business, the Stations or the Purchased Assets: (a) sell, assign, license, lease, transfer, abandon or create any Lien (other than any Permitted Lien) on, or otherwise dispose of, any of the Purchased Assets, other than (i) such sales, assignments, licenses, leases, transfers, abandonments, Liens or other dispositions that are in the ordinary course of business and are not material to the Business, taken as a whole, (ii) as listed on Section 5.1(a)(ii) of the Disclosure Schedule or (iii) in order to comply with its customersand in accordance with, vendors, suppliers, Business Employees and others having Section 5.2; (b) other than (i) in the ordinary course of business relations consistent with past practices (including renewals consistent with the Businessterms thereof), (ii) for those Contracts that can be cancelled by the applicable Seller Party without cause (and without penalty) on less than ninety (90) days’ notice or (iii) as permitted by Section 5.1(c)(i), (A) amend or modify in any material respect or terminate (excluding (1) terminations or renewals upon expiration of the term thereof in accordance with the terms thereof and (2) renewals for a term of one (1) year or less) any Station Agreement, (B) enter into any Contract that would constitute a Station Agreement if in effect on the date hereof (excluding Contracts with a term of one (1) year or less) or (C) waive, release or assign any material rights, claims or benefits, or grant any material consent, under any Station Agreement; provided, that in no event shall Seller or Tribune, as applicable, or any of their respective Subsidiaries take any action covered by this Section 5.1(b) with respect to any Station Agreement (x) that is or would be a network affiliation agreement or (y) that relates to the receiving or obtaining of Program Rights; (c) continue other than as required by applicable Law or the existing terms of any Employee Plan or Collective Bargaining Agreement in effect on the date hereof, (i) grant or increase any severance or termination pay to maintain any Employee above the Books, Records and Files severance or termination pay that would be due under the severance plans of Seller and its Affiliates exclusively or primarily related to Tribune, as applicable, in effect as of the Business on a basis consistent date hereof; (ii) enter into or amend any employment, severance or termination agreement with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities any Employee or hire any Employee except, in each case, in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation any of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingfollowing actions, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable taken in the ordinary course of business, business consistent with past practices (and otherwise subject to the Seller’s ability to pursue other restrictions in good faith any bona fide disputes; this Section 5.1(c)); (hw) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose the hiring of any Purchased Assetson-air talent, producer, news director or general manager with annual base compensation equal to or less than $350,000; (x) the hiring of any Employee with an annual base compensation equal to or less than $250,000 in order to fill a vacant position; (y) any promotion or increase in duties and responsibilities of an Employee commensurate with a promotion or an increase in duties and responsibilities; or (z) any Contract renewal upon the expiration of an Employment Agreement for Employees who are not executive officers; provided, that such renewal or extension contains substantially similar terms as those in the Employment Agreement of other than the sale Employees in such positions or similar positions as have been provided by Seller or Tribune, as applicable, or any of Inventory their respective Subsidiaries and other dispositions of assets are made in the ordinary course of business consistent with past practice; ; or (iiii) not (iA) exclusively licensesolely in respect of Employees of Tribune Stations, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation, bonus or other payments or benefits payable to any Employee, except for merit and annual salary increases and short-term annual bonus payments permitted by the Merger Agreement and (B) solely in respect of Employees of Nexstar Stations, (x) increase in any manner the compensation or in consulting fees, bonus, severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment pay of any such employee without causeEmployee, except (1) with respect to Employees whose annual base compensation does not exceed $100,000, in the ordinary course of business consistent with past practicepractice and (2) with respect to Employees whose annual base compensation is at least $100,000, for increases that do not exceed 5% of aggregate annual compensation for any individual Employee or 3% of aggregate annual compensation for all such Employees, (y) enter into any performance and stay bonuses that will be binding upon Buyer or the Business after the Closing or (z) terminate the employment, other than for cause, of any General Manager or Department Head (for News, Sales and Marketing) of any Station, or transfer, relocate or reassign to another Affiliate of Seller or Tribune any such Employee; (pd) comply in all material respects with all Laws applicable to respect of the Business andBusiness, promptly following receipt thereofmaterially change the methods, give to the Purchaser copies principles or practices of any notice received from financial accounting or annual accounting period, except as required by GAAP or by any Governmental Authority or other Person alleging any violation applicable Law; (e) modify or accede to the modification of any such Laws; andof the Station Licenses if doing so is reasonably likely to be materially adverse to the interests of Buyer and its Subsidiaries after giving effect to the consummation of the transactions contemplated by this Agreement in the operation of the Stations or fail to provide Buyer with a copy of (and a reasonable opportunity to review and comment on) any application for the modification of any of the Station Licenses reasonably in advance of filing with the FCC, except, in each case, as required by Law or as required in connection with the broadcast incentive auction, reassignment and repack conducted by the FCC pursuant to Section 4603 of the Middle Class Tax Relief and Job Creation Act (Pub. L. No. 112- 96, §6403, 000 Xxxx. 000, 225-230 (2012)) (the “Incentive Auction & Repack”); (qf) not take apply to the FCC for any construction permit that would restrict in any material actions respect the Stations’ operations or make any material change in the Purchased Assets that could reasonably be expected to delay is not in the Closing; provided, howeverordinary course of business, except as expressly provided may be necessary or advisable to maintain or continue effective transmission of the Stations’ signals within their respective service areas as of the date hereof, except, in each case as required by Law or as required in connection with the Incentive Auction & Repack; (g) fail to timely make any retransmission consent election with any MVPDs that reported more than 50,000 paid subscribers to Seller, Tribune or any of any of their respective Subsidiaries for September 2018 located in or serving the Stations’ Markets; (h) fail to take any action required to repack or modify any Station as required by the Incentive Auction & Repack; or (i) agree, resolve or commit to do any of the foregoing. Buyer acknowledges and agrees that: (A) nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein Agreement shall give PurchaserBuyer or any of its Affiliates, directly or indirectly, the right to control or direct the operations of Seller or Tribune, as applicable, prior to the Closing, (B) prior to the Closing, Seller or Tribune, as applicable, or the Business shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over the operations of the Stations and (C) notwithstanding anything to the contrary set forth in this Agreement, no consent of Buyer shall be required with respect to any matter set forth in this Section 5.1 or elsewhere in this Agreement to the extent that the requirement of such consent would violate any applicable Law.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Tegna Inc), Asset Purchase Agreement (Nexstar Media Group, Inc.)

Conduct of the Business. (a) From the date of this Agreement until the Closing (or hereof until the earlier of the Closing Date or the termination of this Agreement in accordance with pursuant to Section 11.1)8.1, except as expressly required otherwise provided for by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived (including the disclosure schedules) or consented to in writing by Purchaser the Buyer (which consent shall will not be unreasonably withheld, conditioned conditioned, or delayed), Seller shall: the Company Group will, and the Sellers shall use their commercially reasonable efforts to cause (ato the extent permitted by Law) operate and carry on the Company Group to, conduct the Business and the business of HSW in the ordinary course of business consistent with past practice; (b) use , including, without limitation, using commercially reasonable efforts to (i) keep and maintain their assets in working condition and repair, normal wear and tear excepted, (ii) maintain the Business organization substantially intact, and (iii) preserve intact the goodwill of the Business and the relationships of Seller with its regulators, customers, vendors, suppliers, Business Employees contractors, licensors, employees, and others having business relations with the Business;Company Group; provided that, the foregoing notwithstanding, the Company Group may use all available cash to pay any Seller Transaction Expenses or Indebtedness prior to the Closing. (b) From the date hereof until the earlier of the Closing Date or termination of this Agreement pursuant to Section 8.1, except as reasonably necessary to comply with applicable Law, as otherwise provided for by this Agreement, including without limitation as set forth on Schedule 5.1(b), or as consented to in writing by the Buyer (which consent will not be unreasonably or arbitrarily withheld, conditioned, or delayed), the Company Group will not and the Sellers will cause the Company Group not to, take any action which would be required to be disclosed on Schedule 2.8 pursuant to Section 2.8. (c) continue From the date hereof through the Closing Date, the Company Group shall not apply for or accept any funds pursuant to maintain programs administered under the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business CARES Act (including all Registered IP) in a timely mannerthe Paycheck Protection Program), and use commercially reasonable efforts to maintain in effect all material Permits required for or, except as set forth on Schedule 5.1(c), defer the ongoing operation payment of the Business as presently conducted; (e) perform all of Seller’s material obligations employment-related taxes under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingsuch programs, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to without the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course prior written consent of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingBuyer.

Appears in 2 contracts

Samples: Stock Purchase Agreement (Everside Health Group, Inc.), Stock Purchase Agreement (Everside Health Group, Inc.)

Conduct of the Business. From and after the date of this Agreement until Effective Date and though immediately prior to the Closing (Closing, or until the earlier termination of this Agreement in accordance with Section 11.1)Article 9, except as expressly required by applicable Law, (i) as set forth on Schedule 7.1 Section 6.1 of the Seller Disclosure Schedule, (ii) as otherwise contemplated by or required to implement this Agreement or any Ancillary Agreement, (iii) as Buyer or as Parent may otherwise waived or consented consent to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned ) or delayed)(iv) as required by applicable Legal Requirements, Seller shall: will, and will cause each Acquired Subsidiary to (a) operate and carry on the Business in the ordinary course Ordinary Course of business consistent with past practice; (b) Business and use commercially reasonable efforts to preserve intact and maintain the goodwill of associated with the Business and relationships with the relationships of Seller with its Employees, customers, vendors, suppliers, Business Employees distributors and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to whom the Business on has a basis consistent with past practice; and business relationship and (db) continue to make all necessary and material filings and payments with Governmental Authorities in connection with not, without the Business consent of Parent, take any actions (including all Registered IPi) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for that if taken between the ongoing operation date of the Business as presently conducted; Latest Balance Sheet and the date hereof would be required to be disclosed on Section 4.5 of the Disclosure Schedule (eignoring the phrase “management level” in Section 4.5(k) perform all for purposes of Seller’s material obligations under this Section 6.1); (ii) that would cause a Material Contract to be accelerated, terminated, modified, or cancelled by Seller or any Acquired Subsidiary, or that would cause the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering entry into any closing agreement, settling Material Contract by Seller or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber Acquired Subsidiary (other than Permitted Encumbrances), fail any purchase orders or sales or services agreements on the Business’s standard forms) that is outside the Ordinary Course of Business or that involves the payment or receipt by Seller or the Acquired Subsidiaries of more than $50,000; (iii) that would cause any Acquired Subsidiary to maintain issue or otherwise dispose allow to become outstanding or redeem or otherwise acquire any equity interest of such Acquired Subsidiary or right to any Purchased Assets, such equity interest; (iv) other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed intercompany loans between Seller and Purchaser)the Retained Subsidiaries and the Acquired Subsidiaries, that would cause any Acquired Subsidiary to incur any indebtedness for borrowed money or terminate the employment to guaranty any obligations of any such employee without cause, except in the ordinary course of business consistent with past practice; Person; or (pv) comply in all material respects with all Laws applicable that would be an amendment to the Business and, promptly following receipt thereof, give to the Purchaser copies any organizational documents of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingAcquired Subsidiary.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Qumu Corp), Asset Purchase Agreement

Conduct of the Business. Pending Assumption of Control. From the date hereof until such time as Parent's designees shall constitute a majority of the members of the Board of Directors of the Company, the following provisions shall apply: (a) The Company covenants and agrees that unless Parent shall otherwise agree in writing, (i) the business of the Company and its Subsidiaries shall be conducted only in, and the Company 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 Company 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 Company and its Subsidiaries with customers, suppliers and other persons with which the Company or its Subsidiaries has business relations, (iii) the Company 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, (iv) the Company shall make the capital expenditures identified on the Company's 1999 budget included in the Company Disclosure Letter, however, the Company shall not make any expenditures to develop a wide area network and (v) the Company shall make the additional capital expenditures to purchase equipment as set forth in the Company Disclosure Letter. (b) The Company covenants and agrees that the Company shall not, nor shall the Company permit any of its Subsidiaries to, (i) 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 Company to the Company or another wholly owned Subsidiary of the Company, (ii) split, combine or reclassify any of its capital stock or issue or authorize or propose the issuance of any other securities in respect of, in lieu of or in substitution for shares of its capital stock; (iii) repurchase or otherwise acquire any shares of its capital stock; (iv) issue, deliver or sell, or authorize or propose the issuance, delivery or sale of, any shares of its capital stock or any 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 issuance of shares of Company Common Stock upon (x) the exercise of Company Options outstanding as of the date of this Agreement, and (y) exercise of warrants outstanding as of the date of this Agreement until or (v) take any action that would, or could reasonably be expected to, result in any of the Closing conditions to the Initial Offer set forth in Annex I or any of the conditions set forth in Article VI not being satisfied. (c) The Company covenants and agrees that the Company shall not, nor shall the Company permit any of its Subsidiaries to, (i) amend its certificate 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) borrowings under existing lines of credit (or until under any refinancing of such existing lines) or (B) indebtedness owing to, or guaranties of indebtedness owing to, the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 Company; (iii) make any loans or advances to any other person other than loans or advances between any Subsidiaries of the Seller Disclosure Schedule, as contemplated by Company or required to implement this Agreement between the Company and any of its Subsidiaries (other than loans or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on the Business advances less than $25,000 made in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts practice and loans or advances to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities Subsidiary in Australia in connection with the Business (including all Registered IP) Sydney 2000 Olympic Games which shall in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable no event exceed $100,000 in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereofaggregate); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 2 contracts

Samples: Merger Agreement (General Electric Co), Merger Agreement (Showpower Inc)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, Except as contemplated by or required to implement this Agreement or any Ancillary Agreementwith the written consent of the Purchaser, or as otherwise waived or consented the Company covenants and agrees that, between the date hereof and the Closing Date, the Company shall use commercially reasonable efforts to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on the Business in the ordinary course of business in a manner consistent with past practice; , and shall confer on a regular and frequent basis with the Purchaser and its representatives to report on operational matters and the general status of ongoing operations. Notwithstanding the generality of the foregoing, the Company shall, between the date hereof and the Closing Date, use commercially reasonable efforts to (a) conduct the Business in compliance with all applicable Laws, (b) use commercially reasonable efforts to preserve intact the goodwill of Business’s relationships with the Business and the relationships of Seller with its current customers, vendors, suppliers, Business Employees suppliers and others having business relations dealings with the Business; , (c) continue to maintain the Booksphysical assets, Records properties and Files facilities of Seller the Business in their current working order, condition and its Affiliates exclusively repair as of the date hereof, ordinary wear and tear excepted, (d) not take any action, or primarily related omit to take any action, the intent of which is to cause the termination of the Vending Employees, (e) perform in all material respects the obligations required to be performed by the Company under the Contracts, other than to cure pre-petition monetary defaults, (f) maintain the books and records of the Business on a basis consistent with past prior practice; and , (dg) continue to make all necessary xxxx for products sold or services rendered and material filings and payments with Governmental Authorities pay accounts payable in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; , (ih) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonmaintain all insurance policies set forth on Schedule 3.13 hereto, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacturesuitable replacements therefor, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any through the close of business on the material Permits related to Closing Date, (i) provide the Purchaser with updated monthly financial information concerning the Business; , as reasonably requested by the Purchaser, (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (qj) not take any action that would cause Section 3.05 hereof to be inaccurate in any material actions that could reasonably be expected respect, and (k) grant the Purchaser reasonable access to delay the Closing; providedits customers, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply distributors and suppliers and cooperate with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingPurchaser in communicating with such Persons.

Appears in 2 contracts

Samples: Purchase and Sale Agreement (U S Wireless Data Inc), Purchase and Sale Agreement (TNS Inc)

Conduct of the Business. From During the period from the date hereof until the Closing, Seller shall, except as otherwise contemplated by this Agreement or as set forth on Schedule 4.1, and shall cause its Affiliates to, operate the Businesses only in the ordinary course of business consistent with past practices and shall, and shall cause its Affiliates to, use its or their reasonable efforts to preserve intact the Acquired Assets and the Businesses. Without limiting the generality of the foregoing, and except as otherwise contemplated by this Agreement, from the date of this Agreement until Closing Date, without the Closing (or until the earlier termination prior written consent of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: Seller: (a) operate shall not, and carry on the Business in the ordinary course of business consistent with past practice; shall cause its Affiliates not to, mortgage, pledge or subject to any Lien (other than Permitted Liens) any Acquired Asset, (b) shall, and shall cause its Affiliates to, use commercially its and their reasonable efforts to maintain satisfactory relationships with and preserve intact the goodwill of the Business suppliers and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities customers in connection with the Business conduct of the Businesses, (including all Registered IPc) in a timely mannershall not, and use commercially reasonable efforts shall cause its Affiliates not to, transfer or grant any rights or options in or to maintain in effect all material Permits required any of the Acquired Assets except for the ongoing operation transfer of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable inventory in the ordinary course of business, subject (d) shall not, and shall cause its Affiliates not to, transfer to any third party any rights under any licenses, sublicenses or other agreements with respect to any Intellectual Property, (e) shall, and shall cause its Affiliates to, conduct its marketing and promotional activities with respect to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets Products in the ordinary course of business each Business consistent with past practice; practices, (if) shall not, and shall cause its Affiliates not (i) exclusively licenseto, assign institute any new methods of purchase, sale or transfer operation nor institute any Purchased Business Intellectual Property changes in the product pricing or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any promotional allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices other than in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any each Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; practices, (pg) comply in all material respects with all Laws applicable to the Business andshall not, promptly following receipt thereofand shall cause its Affiliates not to, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take make any material actions that could reasonably be expected to delay the Closing; providedchanges in selling, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 pricing or advertising practices inconsistent with past practices and (h) shall prohibit Seller not launch any Product packaging changes or its Affiliates from conducting their businessesProduct line extensions, including the BusinessEstrace(R) Cream "Unit of Use" line extension. Without limiting the foregoing in clause (g), Seller shall not, and shall cause its Affiliates not to, engage in their reasonable discretion provided it shall comply any special promotions of any Product or establish any tie-ins of any Product with the terms any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly Seller's or indirectly, the right to control or direct the operations of Seller prior to Closingits Affiliates' other products.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Warner Chilcott PLC), Asset Purchase Agreement (Warner Chilcott Inc)

Conduct of the Business. From The Corporation will use reasonable efforts to assist the date Acquiror in obtaining all regulatory approvals required to be obtained, and with the completion and filing of all reports and documents, including the Prospectus and the Listing Statement, required to be completed and filed, in respect of the transactions contemplated by this Agreement until Agreement. The Corporation shall convene and hold a special meeting of its shareholders for the Closing (or until purpose of considering the earlier termination of this Agreement Amalgamation as soon as reasonably practicable and in accordance connection therewith, as promptly as reasonably practicable, prepare the Corporation Proxy Circular, together with Section 11.1), except as expressly any other documents required by applicable Law, as set forth on Schedule 7.1 legislation in connection with the approval of the Seller Disclosure ScheduleAmalgamation, as contemplated by or required to implement this Agreement or any Ancillary Agreementwhich Corporation Proxy Circular shall include a recommendation of the board of directors of the Corporation that the Shareholders vote in favour of the Amalgamation, or as otherwise waived or consented to in writing by Purchaser (and which consent recommendation shall not be unreasonably withheldwithdrawn or amended in any manner other than where required in connection with the exercise by the board of directors of the Corporation of their fiduciary duties. During the Interim Period, conditioned or delayed)other than with the express written approval of the Acquiror, Seller shall: (a) operate and carry on the Corporation shall conduct the Business in the ordinary course of business consistent with past practicepractice and shall use their commercially reasonable best efforts to preserve intact the organization, relationships with third parties and goodwill of the Corporation and keep available the services of the present officers, employees, agents and other personnel of the Business. Without restricting the generality of the foregoing, the Corporation will not: (a) amend its articles or bylaws, except to create the Class A Shares; (b) use commercially reasonable efforts to preserve intact the goodwill sell, mortgage, pledge or otherwise dispose of any substantial assets or properties of the Business and the relationships of Seller with its customersCorporation or enter into any transaction or perform any act that interferes with, vendorsimpedes, suppliers, Business Employees and others having business relations or is inconsistent with the Businesssuccessful completion of the transactions contemplated hereunder; (c) continue to maintain the Booksdeclare, Records and Files of Seller and its Affiliates exclusively set aside or primarily related pay any management fee or dividend or make any other distribution with respect to the Business on capital stock of the Corporation or otherwise make a basis consistent with past practice; anddistribution or payment to any Shareholder; (d) continue amalgamate, merge or consolidate with or agree to make amalgamate, merge or consolidate with, or purchase or agree to purchase all necessary and material filings and payments with Governmental Authorities in connection with the Business (including or substantially all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedassets of, or otherwise acquire, any corporation, partnership or other business organization or division thereof; (e) perform all except as necessary to create the Class A Shares, authorize for issuance, issue, sell or deliver any additional shares of Seller’s material its capital stock of any class or any securities or obligations under convertible into shares of its capital stock of any class or commit to doing any of the Assigned Contracts foregoing except pursuant to the Private Placement and as provided for in accordance with Schedule 3.3 of the terms thereofDisclosure Letter; (f) refrain from makingsplit, changing combine or revoking reclassify any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver shares of the limitation period applicable to capital stock of any claim class of the Corporation or assessment with respect to Taxes; in each case to the extent taking redeem or otherwise acquire, directly or indirectly, any shares of such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodcapital stock; (g) pay and discharge all material Liabilities related incur or agree to incur more than $100,000 of debt or guarantee any debt for borrowed money, including any debt to any Shareholder, or to any Affiliate or Associate of any Shareholder, except debt incurred with the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputesAcquiror; (h) not sellexcept for a $40,000 repayment of the Canada Emergency Business Account, leasemake any loan, license, transfer, abandon, pledge, encumber (advance or capital contribution to or investment in any person other than Permitted Encumbrances)loans, fail advances and capital contributions to maintain or otherwise dispose of any Purchased Assets, investments in joint ventures or other than similar arrangements in which the sale of Inventory and other dispositions of assets Corporation has an equity interest in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except travel advances made in the ordinary course of business consistent with past practice;by the Corporation to its employees to meet business expenses expected to be incurred by such employees; or (pi) comply fail in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected respect to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingany Applicable Laws.

Appears in 2 contracts

Samples: Combination Agreement, Combination Agreement

Conduct of the Business. From Pending the date of this Agreement until Closing. Until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required by applicable Law, as otherwise set forth on in Schedule 7.1 of the Seller Disclosure Schedule, as 6.2 or contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented Sellers shall comply with the provisions set forth below with respect to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallthe Business: (a) The Sellers shall operate and carry on the Business in the ordinary course of business and in the manner consistent with past its prior practice; (b) use commercially reasonable efforts Except as provided for under the existing Employee Benefit Plans and Benefit Arrangements, as defined below, the Sellers shall not (i) grant or agree to preserve intact grant any bonuses to any employee, (ii) grant any general increase in the goodwill rates of the Business and the relationships salaries or compensation of Seller its employees or any specific increase to any employee except such as are in accordance with regularly scheduled periodic increases, or (iii) provide for any new pension, retirement or other employment benefits to any of its customersemployees or any increase in any existing benefits, vendors, suppliers, Business Employees and others having business relations with the Businessexcept as required by applicable law or an existing commitment; (c) continue to maintain the BooksThe Sellers shall not amend any of their certificates of incorporation or by-laws which amendment would have an adverse effect on this transaction, Records and Files issue any shares of Seller and its Affiliates exclusively capital stock or primarily related to the Business on a basis consistent with past practice; andenter into any merger or consolidation agreement; (d) continue The Sellers shall use reasonable efforts to make all necessary maintain and material filings preserve the Business intact, to retain the present employees of the Business so that they will be available to Buyer after the Closing except for the services of the individuals named in Section 6.20 and payments as contemplated by Schedule 4.19 and to maintain their relationships with Governmental Authorities customers, suppliers and others in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for so that those relationships will be preserved after the ongoing operation of the Business as presently conductedClosing; (e) perform all of Seller’s material obligations under the Assigned Contracts The Sellers shall not sell, assign, voluntarily encumber, grant a security interest in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method license with respect to Taxes; refrain from filing to, or dispose of, any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim material assets or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets properties, tangible or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities intangible, related to the Purchased Assets as they become due Business or incur any material liabilities related to the Business, except for sales and payable dispositions made, or liabilities incurred, in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes;; and (hf) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to Sellers shall maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement all insurance currently maintained by Sellers with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable respect to the Business and, promptly following receipt thereof, give to and the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingAssets.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Teardrop Golf Co), Asset Purchase Agreement (Us Industries Inc)

Conduct of the Business. From the date of this Agreement until the Closing (Except as specifically required or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to or approved in writing by Purchaser (which consent shall not be unreasonably withheldBuyer, conditioned or delayed), Seller shallduring the period commencing on the date hereof and ending on the Closing Date: (a) operate the Company shall not conduct its businesses except in the usual, regular and carry ordinary manner consistent with current practice and, to the extent consistent with such current practice, shall use reasonable best efforts to keep available the services of the present employees of the Company and preserve the Company's present relationships with persons having business dealings with the Company; (b) the Company shall not fail to maintain the Company's books, accounts and records in the usual, regular and ordinary manner, on a basis consistent with past practice, and shall comply in all material respects with all Applicable Laws and other obligations of the Business Company; (c) the Company shall not (i) sell, pledge or issue any option or other right to acquire any stock owned by it, (ii) amend its Articles of Incorporation or Bylaws, (iii) split, combine or reclassify the outstanding Common Stock, (iv) declare, set aside or pay any dividend payable in cash, stock or property with respect to the Common Stock, or (v) tender any Common Stock for purchase pursuant to the Offer; (d) the Company shall not (i) issue any additional shares of, securities convertible into shares of, or rights of any kind to acquire any shares of, its capital stock, (ii) sell, transfer, lease or otherwise encumber any assets or incur any indebtedness other than in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingthat, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing incurrence of indebtedness, is prepayable without penalty or premium, (iii) make any amended Tax Return; refrain from entering into any closing agreementmaterial capital expenditures other than replacements, settling repairs or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable betterments made in the ordinary course of business, subject (iv) acquire any corporation, partnership or other business organization or enterprise, (v) acquire or offer to acquire any of its capital stock, or (vi) modify in any material respect any agreement with respect to any of the Seller’s ability to pursue in good faith any bona fide disputesforegoing; (he) the Company shall not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination paypay to or increase the compensation payable to, or enter into or amend any new employmentemployment agreement with, deferred compensation any officer, director or similar agreement with any such employee of the Company (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate pursuant to agreements of the employment of any such employee without cause, except Company in effect on the date hereof disclosed in the ordinary course of business consistent with past practice10K); and the Company shall not increase benefits payable under its current severance or termination pay policies; (pf) comply in all material respects with all Laws applicable the Company shall not adopt, or amend to increase compensation or benefits payable under, any plan, agreement, trust, fund or arrangement for the Business and, promptly following receipt thereof, give to the Purchaser copies benefit of any notice received from any Governmental Authority or other Person alleging any violation of any such Lawsemployees; and (qg) the Company shall not agree or commit to take any material of the actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided prohibited in this Section 7.1, nothing or any action that would make any representation or warranty contained in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing3.1 untrue.

Appears in 2 contracts

Samples: Purchase Agreement (Riney Rodger O), Purchase Agreement (Riney Rodger O)

Conduct of the Business. From (a) Transferor agrees that during the period from the date of this Agreement until the Closing (or hereof until the earlier of the Closing or the termination of this Agreement in accordance with Section 11.1)Agreement, except as expressly required by applicable Lawprovided in Section 5.1(b) hereof, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to by Transferee in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned withheld or delayed), Seller Transferor shall: (ai) operate at its own expense, take reasonable steps to maintain and carry protect the tangible Transferred Assets as they exist at the Effective Date against loss, theft, destruction, breakage or falling into disrepair (normal wear and tear excepted), it being understood and agreed by Transferor and Transferee that tangible Transferred Assets are held and maintained at the Facilities pursuant to storage facility agreements and that Transferor’s obligations under this Section 5.1(a)(i) as they relate to such tangible assets shall be satisfied (x) if Transferor complies with those terms and conditions of such agreements, including the continued payment of the Facilities’ fees, which, if breached, would reasonably be expected to have a material adverse effect on any Transferred Asset and (y) if, upon notice to Transferor of the Business occurrence of an event (other than a breach of the storage facility agreements) that has resulted in, or which could reasonably be expected to result in, the loss, theft, destruction or breakage of assets, Transferor takes all actions reasonably necessary to mitigate any such loss, theft, destruction or breakage; provided that, Transferor shall not be obligated to continue mitigation if it has incurred costs in connection therewith in excess of $5,000 if Transferor informs Transferee of the event and expected cost of mitigation and allows Transferee to continue mitigation efforts at Transferee’s sole cost and expense; and (ii) not (x) amend or terminate (prior to its expiration) any Assumed Contract or (y) grant any interest in or license to use any of the Transferred Assets to any Third Party, other than the interest, if any, that Transferor may be required to grant to BioVeris in connection with the Purchase Right (as such term is defined in the ordinary course of business consistent with past practice;ECL License) and not to modify or terminate the ECL License. (b) During the period from the date hereof until the earlier of the Closing or the termination of this Agreement, Transferor shall provide prompt written notice to Transferee of any communications it receives relating to required filings, or renewal or maintenance fees to be paid for Transferred Assets which constitute Patents or Registered Trademarks or applications to register Trademarks. Transferor shall have no obligation to maintain or protect any Patents, Trademarks or other Intellectual Property. Transferee may, in its sole discretion and sole expense, maintain and protect the Transferred Assets which constitute Intellectual Property. In furtherance of the foregoing, during the period from the date hereof until the earlier of the Closing or the termination of this Agreement, the Wellstat Parties may make any filings they reasonably deem necessary or appropriate to protect against expiration or abandonment of such Transferred Assets for failure to pay renewal or maintenance fees or to prosecute, at the Wellstat Parties’ sole expense. In connection with any such filings, Transferor will use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customerscooperate, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect reasonably necessary to permit the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related Wellstat Parties to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with make any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingfilings.

Appears in 2 contracts

Samples: Settlement Agreement (PDL Biopharma, Inc.), Asset Transfer Agreement (PDL Biopharma, Inc.)

Conduct of the Business. From Seller agrees that, during the period from the date of this Agreement until to the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required by applicable Law(i) for transfers of Excluded Assets from the Division to Seller, (ii) as set forth on Schedule 7.1 in Section 5.1 of the Seller Disclosure Schedule, Schedule or (iii) as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to by Buyer in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallwriting: (a) operate Seller shall (i) cause the business operations of the Division to be conducted in the ordinary course consistent with past practice, (ii) preserve intact the Division's organization and carry use its reasonable best efforts to preserve relationships with suppliers, customers and others having business dealings with the Division in order that its goodwill and ongoing business shall not be impaired in any material respect on the Closing Date, (iii) maintain its books, accounts and records relating to the Business in the ordinary manner, on a basis consistent with past practice, (iv) comply in all material respects with all contractual obligations applicable to the Division or the conduct of the Business and perform all of its material obligations relating to the Business, (v) maintain in the ordinary course all of the material licenses and permits listed on the Seller Disclosure Schedule in full force and effect, (vi) maintain in the ordinary course all real property, buildings, offices, shops and other structures and material properties included in the Assets in good operating condition and repair, except for ordinary wear and tear; and (vii) pay its accounts payable relating to the Business in the ordinary course of business on a basis consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill Seller shall not (i) sell or dispose of any of the Business properties or assets of the Division in excess of $100,000, in the aggregate, except in the ordinary course of business; (ii) except as may be required by existing contracts and except for intercompany loans and advances, make any loans, advances (other than advances in the relationships ordinary course of Seller business and consistent with past practice of the Business) or capital contributions to, or investments in, any other Person on behalf of the Business; (iii) increase in any manner the compensation of any of the officers or other employees of the Business, except such increases as are granted in the ordinary course of business in accordance with its customerspractices of the last two years (which shall include normal periodic performance reviews and related compensation and benefit increases); (iv) adopt, vendorsgrant, suppliersextend or increase the rate or terms of any bonus, Business Employees and others having business relations insurance, pension or other employee benefit plan, payment or arrangement made to, for or with any such officers or employees of the Business; , except for increases occurring in the ordinary course of business in accordance with its practices of the last two years or increases required by any applicable law, rule or regulation; (cv) continue make any change in any of the present accounting methods and practices of the Business, except as required by changes in GAAP; (vi) mortgage, pledge or subject to maintain Lien or other encumbrances any of the BooksAssets or the Shares (other than Permitted Liens and other than pursuant to the Credit Agreement, Records dated as of December 19, 1995, as amended between Seller, the lenders party thereto and Files General Electric Capital Corporation); (vii) cancel any debt or material claim in its favor or waive any right of Seller and its Affiliates exclusively or primarily related material significance relating to the Business on a basis consistent with past practiceor the Assets; and (dviii) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing the Division, settle or compromise any amended Tax Return; refrain from entering into any closing agreementmaterial claims or litigation or, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable except in the ordinary course of business, subject modify, amend or terminate any material contracts; (ix) with respect to the Seller’s ability Division, permit any material insurance policy to pursue in good faith any bona fide disputes; be canceled or terminated without notice to Buyer; (hx) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances)with respect to the Division, fail to maintain confer on a regular and frequent basis with one or more representatives of Buyer to report material operational matters and the general status of ongoing operations; (xi) with respect to the Division, commit a breach of, or default under, any material contract, agreement, license or instrument to which they are a party or to which any of their assets may be subject; (xii) with respect to the Division, (A) factor or discount its accounts receivable or other amounts due, (B) delay payment on, or otherwise dispose of any Purchased Assetsalter the payment terms of, other accounts payable or pay the amounts due thereunder later than the stated date for payment thereof in accordance with past practice or (C) sell any inventory at less than fair market value or make any bulk sale of Inventory and other dispositions of assets such inventory except in the ordinary course of business consistent course; (xiii) with past practice; respect to the Division, (iA) not (i) exclusively license, assign make or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory authorize capital expenditures in excess of consumption consistent with past practices $500,000; (B) acquire (by merger, consolidation, or acquisition of stock or assets) any corporation, partnership or other business organization or division thereof; (C) assume, guarantee or endorse, or otherwise as an accommodation become responsible for, the obligations of any Person, or make any loans or advances to any Person; (D) enter into any material contract or agreement other than in the ordinary course of business; ; or (kE) not manufactureamend or terminate in any respect any material contract, agreement, commitment or arrangement other than in the ordinary course of business; (xiv) with respect to the Conveyed Subsidiaries, (A) make any new or change any current Tax election or (B) settle or compromise any material federal, state, local or foreign income Tax liability; (xv) with respect to the Division, incur or assume any indebtedness or guarantee any indebtedness or commitments for the same; (xvi) with respect to the Division, loan or advance any amount to, or sell, transfer or lease any property or asset to, or enter into any purchase commitments to purchaseagreement with, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related their respective stockholders, officers, employees or directors; (xvii) with respect to the Business; Division, enter into any employment agreement, sales agency agreement or other contract for the performance of personal services which is not terminable without liability upon no more than thirty (m30) not amend, modify, cancel days' notice (or terminate such greater notice period prescribed by law) or grant any Assigned Contract (other than terminations increase in the rate of compensation or expirations at in the end of benefits payable or to become payable to any agent or consultant over the stated term after levels in effect on the date hereof); ; (nxviii) not waivewith respect to the Division, releaseterminate, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employmentleases, deferred compensation governmental licenses or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser)permits affecting real and/or personal properties, or terminate other authorizations or agreements affecting real properties or the employment operation thereof other than as contemplated by Sections 1.1(d) and 5.4 hereof; (xix) make or guarantee any loans to any customer, vendor or distributor of the Division or its products; (xx) with respect to the Division, reduce any liabilities or reserves in the aggregate in amounts in excess of $500,000, except by reason of related cash payments; (xxi) amend or propose to amend the articles of association or by-laws of the Conveyed Subsidiaries; or (xxii) (A) declare or pay any dividends on or make other distributions in respect of any of the capital stock of the Conveyed Subsidiaries, (B) split, combine or reclassify any of such employee without causecapital stock, except or issue or authorize or propose the issuance of any other securities or interests in the ordinary course respect of, in lieu of business consistent with past practice;or in substitution for shares of such capital stock or (C) repurchase or otherwise acquire any shares of such capital stock. (pc) comply Seller shall not take any action regarding the Conveyed Subsidiaries that would adversely affect Buyer as owner of the Shares after Closing or adversely affect Seller's ability to transfer the Shares to Buyer. (d) Seller shall promptly comply, and shall cause the Asset Affiliates and the Conveyed Subsidiaries to comply, in all material respects with all Laws laws and regulations (including, without limitation, those relating to the protection of the environment and employee benefits) applicable to the Business andDivision and the Assets and all laws and regulations with which compliance is required for the valid consummation of the transactions contemplated hereby and shall promptly notify Buyer of any legal, promptly following receipt thereofadministrative or other proceedings, give investigations, inquiries, complaints, notices of violation or other asserted claims, judgments, injunctions or restrictions, pending, outstanding or, to the Purchaser copies knowledge of Seller, threatened or contemplated, which could affect the Division, the Business or any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingAssets.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Figgie International Inc /De/), Asset Purchase Agreement (Omniquip International Inc)

Conduct of the Business. (a) From the date hereof until the earlier of the termination of this Agreement and the Closing Date, except (i) as set forth on Schedule 5.01(a), (ii) if Parent shall have consented in writing, or (iii) as expressly permitted by this Agreement, (1) the Company and each Subsidiary of the Company shall, and the Key Persons shall ensure that Nord Capital and each Subsidiary of Nord Capital shall, conduct its business and the businesses of its Subsidiaries only in the ordinary course of business, in all material respects consistent with past practice and at all times in compliance with applicable Law and its contractual obligations and use commercially reasonable efforts to maintain and preserve intact its business organization and the goodwill of those having material business relationships with it and retain the services of its present officers and key employees; and (2) without limiting the generality of the foregoing, the Company shall not, and shall not permit any of its Subsidiaries to, and the Key Persons shall ensure that Nord Capital shall not, and shall not permit any of its Subsidiaries to (references to the Company and any associated references below in this Section 5.01 shall be deemed to include Nord Capital and its Subsidiaries): (i) issue, sell, grant, dispose of, pledge, otherwise encumber or deliver any of its or any of its Subsidiaries' shares, profit certificates, voting or equity securities, or any securities, options, warrants, calls commitments or other agreements or rights convertible into, exchangeable or exercisable for, or evidencing the right to subscribe for any shares, profit certificates, voting or equity securities; (ii) redeem, repurchase or otherwise acquire any of its outstanding shares, profit certificates, voting or equity securities, or any rights, warrants, calls, options, commitments or any other agreements to acquire any shares, profit certificates, or voting or equity securities; (iii) declare, set aside for payment or pay any dividend on, or make any other distribution in respect of, any shares, profit certificates, or voting or equity interests or otherwise make any payments to its holders of shares, profit certificates, and voting or equity interests in their capacity as such; (iv) effect any recapitalization, reclassification, partial liquidation, dissolution, merger, amalgamation, consolidation, restructuring, equity split, combination, subdivision or like change in its capitalization; (v) amend the Company Organizational Documents or any of its Subsidiaries' organizational documents; (vi) sell, assign or transfer any material portion of its tangible assets, except in the ordinary course of business and except for sales of obsolete assets or assets with de minimis or no book value; (vii) sell, assign, transfer or exclusively license any patents, trademarks, trade names or copyrights that are material and necessary for the conduct of the business of a Group Company, except in the ordinary course of business; (viii) amend, voluntarily terminate or enter into any Material Contract other than in the ordinary course of business or as required by Law; (ix) make any material capital expenditures or commitments therefor, except (1) in the ordinary course of business and (2) for such capital expenditures or commitments therefor that are reflected in the Company's current budget; (x) incur or assume any indebtedness for borrowed money or guarantee any indebtedness (or enter into a "keep well" or similar agreement) other than in connection with financing arrangements as in existence as of the date of this Agreement until or financing of ordinary course trade payables or issue or sell any debt securities or options, warrants, calls or other rights to acquire any debt securities of the Closing Company or any of its Subsidiaries; (or until the earlier termination xi) enter into any other material transaction with any of this Agreement in accordance with Section 11.1)its shareholders, managers, officers, directors and employees except as expressly required by applicable Law, as pursuant to any agreement set forth on Schedule 7.1 the Disclosure Schedules; (1) with respect to any to any Service Provider (A) increase, or make any commitment to increase, compensation, bonus or benefits; (B) make, promise or enter into any agreement to provide any severance, incentive, retention payment, change in control‑related bonus, or other similar payment; (C) make, or amend, any existing severance, retention or termination arrangement; (D) fund, increase or accelerate the payment or vesting of the Seller Disclosure Schedulecompensation or benefits; or (E) grant, as contemplated by announce or required to implement this Agreement promise any equity or equity-based compensation; (2) enter into or amend any employment, consulting, deferred compensation or other similar agreement with any Person; (3) establish, adopt, amend or terminate any Company Plan (or any Ancillary Agreementinsurance or funding agreement or arrangement with respect to any such Company Plan); (4) hire, promote, change the title of or as fire any Service Provider; or (5) become a party to or otherwise waived be bound by any collective bargaining agreement or consented to other agreement with a Union, other than, in writing by Purchaser the case of clauses (which consent shall not be unreasonably withheld, conditioned or delayed2) and (4), Seller shall: (a) operate and carry on the Business with respect to non-executive officer employees, in the ordinary course of business consistent with past practicepractices; (bxiii) use commercially reasonable efforts to preserve intact adopt any material change in the goodwill of the Business cash management practices and the relationships policies, practices and procedures with respect to collection of Seller with its customersaccounts receivable, vendorsestablishment of reserves for uncollectible accounts or credit notes, suppliersaccrual of accounts receivable, Business Employees prepayment of expenses, accruals under Company Plans, accruals and others having business relations with the Businesssettlements related to Taxes, payment of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer deposits; (cxiv) continue to maintain the Bookssell, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not selltransfer, lease, sublease, license, transfer, abandon, pledgemortgage, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of or subject to any Purchased Assets, other than the sale Lien (including pursuant to a sale-leaseback transaction or an asset securitization transaction) any material portion of Inventory and other dispositions of assets in the ordinary course of business consistent with past practiceits properties or assets; (ixv) not directly or indirectly acquire (ix) exclusively license, assign by merging or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonconsolidating with, or permit to lapse by purchasing all of or a substantial equity interest in, or by any rights in other manner, any person or to division, business or equity interest of any Purchased Business Intellectual Property person (other than with or among Subsidiaries) or (y) any Purchased Business Technologymaterial business or assets; (jxvi) not grant make any allowances investment (by contribution to capital, property transfers, purchase of securities or discounts on Products outside the ordinary course of business otherwise) in, or sell Inventory in excess of consumption consistent with past practices loan or advance to, any person other than in the ordinary course of business; (kxvii) not manufacture, or enter into any purchase commitments to purchase, Inventory material commitment or transaction other than in amounts outside the ordinary course of business; (lxviii) use commercially reasonable efforts not fail to keep current and make any material changes in full force and effect financial or renew Tax accounting methods, principles or practices (or change an annual accounting period), except insofar as may be required by a change in GAAP; (xix) make or change any material election in respect of Taxes or material accounting policies of any of the material Permits related Company or its Subsidiaries, file any amended Tax Return, enter into any closing agreement, settle or compromise any Tax claim or assessment, agree to extend or waive any statute of limitations for the Businessassessment or assertion of Taxes, extend the due date for the payment of any Tax or filing of any Tax Return, forego or waive any Tax credit or refund, or apply for or obtain a ruling from (or enter into an agreement with) a Tax authority, in each case except in connection with the Merger and unless required by Law or (in the case of accounting policies) by GAAP; (mxx) not amend, modify, cancel or terminate take any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination payaction, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable fail to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that action, which action or failure could reasonably be expected to delay cause the ClosingCompany to fail to have qualified as an S corporation for its taxable years ended prior to January 1, 2020 (or fail to qualify as a REIT for its taxable year ending at the Closing Date) for U.S. federal or applicable state or local Tax purposes, or any of its Subsidiaries to cease to be treated as any of (1) a partnership or disregarded entity for U.S. federal income tax purposes or (2) a Qualified Subchapter S Subsidiary or a Taxable REIT Subsidiary; (xxi) take any action, or fail to take any action, which action or failure could reasonably be expected to prevent or impede the Merger from qualifying as a reorganization within the meaning of Section 368(a)(1)(A) of the Code; (xxii) commence, compromise, settle or grant any release of a claim relating to any Action if the amount payable by any Group Company in connection therewith would exceed $100,000; (xxiii) cancel or materially modify any of the insurance policies of a Group Company or whether through action or omission cause them to lapse or expire; (xxiv) cancel any Indebtedness or waive any claims or rights of substantive value in respect of Indebtedness; providedor (xxv) authorize, howevercommit, except as expressly provided resolve, propose or agree in writing or otherwise to take any of the foregoing actions. (b) Nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein Agreement shall give PurchaserParent or Merger Sub, directly or indirectly, the right to control or direct the Company's or any of its Subsidiaries' operations of Seller prior to the Closing.

Appears in 2 contracts

Samples: Merger Agreement (Nordhagen Arlen Dale), Merger Agreement (National Storage Affiliates Trust)

Conduct of the Business. (a) From the date of this Agreement until the Closing (or hereof until the earlier of the Closing Date or the termination of this Agreement Agreement, Sellers shall, consistent with the other provisions of this Agreement, use their reasonable best efforts to, and shall cause the respective Subsidiaries to use their respective reasonable best efforts to, conduct the portion of the CRS Business conducted by them in accordance the ordinary course consistent with Section 11.1)past practice and maintain, generally, their existing relations and goodwill with customers, partners, Borrowers, vendors, suppliers, regulators, licensors and licensees and other third parties relating to the CRS Business. (b) From the date hereof until the earlier of the Closing Date or the termination of this Agreement, except as (1) otherwise expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or (2) consented to in writing in advance by Purchaser (which consent shall not be unreasonably withheld, conditioned withheld or delayed), or (3) required by Applicable Law, each Seller shallshall not, and shall cause its respective Subsidiaries (as applicable) not to: (ai) operate Materially amend, terminate or otherwise materially modify any of the CRS Account Agreements other than in the ordinary course of business; provided that Sellers may modify interest rates, fees and carry other similar terms, waive late fees or other similar fees or charges and change credit limits on CRS Accounts or terminate CRS Account Agreements, in each case, in the ordinary course of business consistent with past practice and on a basis consistent with its written policies, practices and procedures in effect as of the date hereof; (ii) With respect to the CRS Business, (A) materially modify any of its accounting practices (to the extent that any change in such accounting practices would be binding on or otherwise affect the Acquired Assets, the Assumed Liabilities or Purchaser following the Closing) or (B) materially modify any of its written policies or procedures (including policies and procedures applicable to underwriting accounts, credit, risk management, servicing, posting, recoveries, charge-off, re-aging, workout, collections, credit line adjustments, data or physical security, delinquency, accounting or reporting methods or other operating policies, practices or procedures or its method of assigning and releasing status codes), or (C) fail to conduct such CRS Business in all material respects in the ordinary course of business consistent with past practice with respect to the matters specified in the foregoing clause (B), except to comply with Applicable Law or at the direction of any Governmental Entity with jurisdiction over the applicable Selling Entity; (iii) Fail to comply in any material respect with any Applicable Law governing the Acquired Assets and the CRS Business; (1) Hire, terminate, or transfer any employee (or other service provider) of the CRS Business, other than hires and terminations in the ordinary course of business consistent with past practice for employees, (2) increase the compensation or benefits payable to the Business Employees, by an aggregate amount that is greater than 4% of base salary or base wage, other than increases in the ordinary course of business consistent with past practice, or (3) enter into, renew, amend, or terminate any Employee Plan or any collective bargaining agreement with respect to the Transferred Business Employees; provided, however, that nothing in this Section 6.2(b)(iv)(3) shall limit the ability of Sellers or any of their respective Subsidiaries to adopt, modify, amend or terminate any employee benefit plan, program, policy, arrangement or practice on terms that apply uniformly to the employees of Sellers or their Subsidiaries generally; (bv) use commercially reasonable efforts Terminate or materially modify any Assigned Lease, or place, or knowingly permit to preserve intact the goodwill be placed, any Lien (other than a Permitted Lien) upon any of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessAcquired Assets; (cvi) continue Fail to maintain the BooksBusiness Premises in a condition substantially the same as of the date of this Agreement, Records ordinary wear and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; anduse excepted; (dvii) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts Fail to maintain in effect all material Permits required for the ongoing operation property, liability, fire and casualty insurance in effect as of the date hereof, on substantially the same terms as currently in effect, with regard to the Business as presently conductedPremises; (eviii) perform all Terminate or materially modify any Acquired Contract, other than (1) as required by its existing terms, (2) modification in connection with renewals of Seller’s material obligations under the Assigned Acquired Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course consistent with past practice, or (3) as a result of business, subject action by the other party to the Seller’s ability to pursue in good faith any bona fide disputessuch Acquired Contract; (hix) not sellSell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain transfer or otherwise dispose convey any material property that is part of any Purchased the Acquired Assets, other than (1) as required by the sale existing terms of Inventory any Contract existing as of the date hereof or (2) transfers among Selling Entities; (x) Except at the request of a Borrower, move any Borrower from a CRS Account to any other credit card product offered by Sellers; (xi) Take any action with respect to the CRS Accounts that would reasonably be expected to prohibit Purchaser from making changes following the Closing to the annual percentage rates or fees charged to Borrowers; (xii) Release, compromise or waive any material claim or right that is part of the Acquired Assets; (xiii) Settle or compromise any litigation or investigation if such settlement or litigation would reasonably be expected to impose any material obligation or material liability on the Acquired Assets, the Assumed Liabilities or Purchaser or any of its Subsidiaries (other than any settlement or compromise providing solely for the payment of money damages that is included as a liability on the Estimated Closing Statement or Final Closing Statement); or (xiv) Authorize or enter into any agreement or commitment with respect to any of the foregoing. (c) From the date hereof until the earlier of the Closing Date or the termination of this Agreement, except as (1) otherwise expressly contemplated by this Agreement, (2) consented to in writing in advance by Sellers (which consent shall not be unreasonably withheld or delayed), or (3) required by Applicable Law, Purchaser shall not, and other dispositions of assets in the ordinary course of business consistent with past practice;shall cause its Subsidiaries not to: (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology amend its governing documents in a manner that would affect the Sellers adversely relative to any Person (including any current or former employee or consultant other holders of Seller or any contractor or commercial partner of Seller); and Purchaser Common Stock; (ii) dispose ofsolely with respect to Purchaser, abandon(a) adjust, split, combine or reclassify the Purchaser Common Stock, or permit to lapse (b) make, declare or pay any rights in dividend, or to make any Purchased Business Intellectual Property other distribution on, or directly or indirectly redeem, purchase or otherwise acquire, any Purchaser Common Stock or any Purchased Business Technologyof its other securities or obligations convertible (whether currently convertible or convertible only after the passage of time or the occurrence of certain events) into or exercisable or exchangeable for any Purchaser Common Stock, other than making, declaring or paying regular quarterly dividends on Purchaser Common Stock not in excess of $0.05 per share of Purchaser Common Stock per quarter with substantially the same record dates as have been utilized in recent periods; (jiii) not grant any allowances adopt a plan of complete or discounts on Products outside the ordinary course partial liquidation or resolutions providing for or authorizing such a liquidation or dissolution, restructuring, recapitalization or reorganization of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business;Purchaser; or (kiv) not manufacture, or enter into any purchase commitments to purchaseContract to, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew otherwise agree or commit to, do any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 2 contracts

Samples: Purchase and Assumption Agreement (HSBC Finance Corp), Purchase and Assumption Agreement (Capital One Financial Corp)

Conduct of the Business. From the date of this Agreement until the Closing (or hereof until the earlier of the Closing Date and the termination of this Agreement in accordance with Section 11.1)Agreement, except (i) as expressly required by applicable Lawcontemplated hereunder, (ii) as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or Purchaser shall have consented to in writing by Purchaser (which consent shall will not be unreasonably withheld, conditioned or delayed)) or (iii) as set forth on Schedule 6.01, Seller each of the Blocker/Holdco Parties shall: (a) operate , and carry on the Company shall and the Company shall cause its Subsidiaries to, conduct the Business in the ordinary course of business consistent with past practice; business, and (bA) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for its assets and properties and to preserve their current relationships with employees, suppliers, lessees, lessors, payors and others having business dealings with it, (B) manage its Cash and working capital (including the ongoing operation timing of collection of accounts receivable and the Business as presently conducted; (epayment of accounts payable) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject (C) continue to make capital expenditures in the ordinary course of business, (D) use commercially reasonable efforts to assure that each Facility has appropriate Healthcare Permits and renew the same, as necessary, and (E) promptly notify the Purchaser of, and promptly deliver to the Seller’s ability Purchaser a copy of any written notice the Company or any of its Subsidiaries actually receives, on or before the Closing, from any Governmental Entity, concerning any alleged violation of Healthcare Laws that has not been previously disclosed to pursue the Purchaser. Without limiting the generality of the foregoing, except (i) as expressly contemplated hereunder, including without limitation effectuating the Pre-Closing Reorganization, (ii) as the Purchaser shall have consented in good faith writing (which consent, will not be unreasonably withheld, conditioned or delayed) or (iii) as set forth on Schedule 6.01, without the prior written consent of the Purchaser, each of the Blocker/Holdco Parties shall not, and the Company shall not, and the Company shall not permit its Subsidiaries to, and the Blocker Seller shall not permit the Blocker Entity or Trilogy Holdings to, directly or indirectly (whether by merger, consolidation or otherwise): (a) (i) issue, sell or deliver any bona fide disputesEquity Interests of the Blocker Entity or Trilogy Holdings, or the Company or any of its Subsidiaries, or issue or sell any securities convertible into, or options with respect to, or warrants to purchase or rights to subscribe for, any Equity Interests of the Trilogy Parties or any of their Subsidiaries, (ii) split, combine, reclassify, repurchase, redeem or otherwise acquire any Equity Interests of any Trilogy Party or any of its Subsidiaries or (iii) except for the E&P Dividend, declare, set aside or pay any dividend or other distribution in respect of Equity Interests of any Trilogy Party or any of its Subsidiaries; (hb) not amend the Blocker Entity’s or Trilogy Holdings Organizational Documents or the Company’s or any of its Subsidiary’s Organizational Documents; (c) sell, leaseassign, license, transfer, abandon, pledge, encumber or transfer any assets of the Company or any of its Subsidiaries except (other than Permitted Encumbrances), fail to maintain x) obsolete or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of worn assets in the ordinary course of business consistent with past practice; or (iy) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices immaterial assets in the ordinary course of business; (kd) not manufacture, or enter into acquire any purchase commitments to purchase, Inventory assets of any Person except immaterial assets in amounts outside the ordinary course of business; (le) use commercially reasonable efforts not fail to keep current and in full force and effect make any capital investment in, or renew any loan or advance to, any Person other than a wholly-owned Subsidiary of the material Permits related to the BusinessCompany; (mf) not amend, modify, cancel make any capital expenditures or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without causecommitments therefor, except in the ordinary course of business or for such capital expenditures or commitments therefor that are set forth in the CapEx Budget; (g) make any capital expenditures or commitments therefor (whether funded with equity or Indebtedness) that would cause the Madison Investment to exceed $15,700,000; (h) make any loan to, or enter into any other transaction with, any Seller or any of their respective managing members or managing partners or any directors or officers of any Trilogy Party or any of its Subsidiaries (it being understood that this Section 6.01(h) shall not restrict actions with respect to any Plan or Employment Agreement, which actions are covered by Section 6.01(j) below); (i) other than as required by applicable Law, make or change any Tax election, change any annual Tax accounting period, adopt or change any method of Tax accounting, amend any Tax Return, enter into any closing agreement, settle any Tax claim or assessment, surrender any right to claim a Tax refund, offset or reduce any Tax liability, or consent to any extension or waiver of the limitations period applicable to any Tax claim or assessment; (j) except (i) as otherwise required by an existing Plan, (ii) as required by applicable Law, or (iii) as required by Contracts existing on the date hereof, adopt, enter into, amend, modify or terminate any Plan, Employment Agreement or severance agreement, or increase the benefits provided under any Plan or Employment Agreement, or payment of any vacation pay, sick pay, bonus, severance, incentive, disability, profit sharing or other payments, or otherwise increase in any manner the compensation of any officer, director or employee; (k) hire for new employment or service, except as provided in the Operating Budget, any individual to serve in the position of vice president or higher or any position performing a substantially similar role, or terminate any employee or service provider currently serving in any such position or role without cause; (l) pay or grant any right to receive any bonus, severance or other special remuneration to any officer, director, employee or consultant except as may be required pursuant to any Employment Agreement or any Plan in effect as of the date hereof consistent with past practicepractices or otherwise as a result of the transactions contemplated by this Agreement; (pm) comply in all material respects with all Laws applicable respect only to the Business andBlocker/HoldCo Parties, promptly following receipt thereofconduct any business or operations or enter into any Contract with any Person; (n) make any change in accounting methods, give to the Purchaser copies principles or practices of any notice received from Trilogy Party or any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, howeverits Subsidiaries, except insofar as expressly provided may be required by a change in this Section 7.1GAAP; (o) incur, nothing assume or guarantee any Indebtedness or Capitalized Lease Obligation, other than drawdowns under existing Indebtedness in this Section 7.1 shall prohibit Seller the ordinary course of business or its Affiliates from conducting their businesses, including Capitalized Lease Obligations in the Business, in their reasonable discretion provided it shall comply with the terms ordinary course of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.business;

Appears in 2 contracts

Samples: Equity Purchase Agreement (NorthStar Healthcare Income, Inc.), Equity Purchase Agreement (Griffin-American Healthcare REIT III, Inc.)

Conduct of the Business. From Rice covenants and agrees that from and after the date execution of this Agreement and until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except (i) as expressly contemplated by this Agreement, (ii) as required by applicable LawLaw or (iii) subject to Section 5.3, as set forth on Schedule 7.1 with the prior written consent of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallPartnership: (a) operate Rice will not, and carry will not permit any of its Subsidiaries to: (i) sell, transfer, assign, convey or otherwise dispose of any of the Conveyed Interests; (ii) conduct any of the Business through any Person other than the Rice Water Entities (other than as contemplated by the Secondment Agreement and the Omnibus Agreement); (iii) allow any Permits material to the Business to terminate or lapse other than expirations in accordance with their respective terms, in which case Rice shall (and shall cause the applicable subsidiary to) use its commercially reasonable efforts to obtain an extension or replacement of such expired Permit if necessary for the Business (iv) amend the Organizational Documents of any Rice Water Entity; (v) utilize any Water Asset for any purpose other than in the ordinary course of business (including emergency operations) consistent with past practices in connection with the Business; (vi) permit any Lien to be imposed or granted or to exist on the Conveyed Interests other than the Rice Midstream Loan Liens that will be released at Closing and Permitted Liens; (vii) permit any of the Rice Water Entities to: (A) sell, transfer, assign, convey or otherwise dispose of any of the Water Assets except sales of inventory for fair value in the ordinary course of operating the Business consistent with past practices; (B) acquire (including by merger, consolidation or acquisition of equity interest) any Person, make an investment in or a loan to any Person (other than intercompany advances made in the ordinary course of business consistent with past practices), or acquire (including making capital expenditures or leasing (other than leases of equipment made in the ordinary course of operating the Business consistent with past practices cancelable by Rice or the Rice Water Entities upon 90 days’ or less prior notice without penalty)) any assets with an aggregate value in excess of $2,500,000 individually or in combination with any other assets acquired pursuant to this clause (B); (C) enter into any joint venture, partnership or similar arrangement; (D) incur, permit to exist, issue, repay, redeem or repurchase any Indebtedness or capital leases or issue any debt securities or assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any Person, or make any loans or advances, or delay or postpone beyond the applicable due date the payment of accounts payable or other liabilities other than (A) endorsements of checks for deposit, (B) causing the issuance of letters of credit and performance bonds in the ordinary course of operating the Business consistent with past practice, and (C) Indebtedness under the Rice Midstream Credit Facility for which the Rice Water Entities are released of any and all obligations and Liabilities at Closing; (E) permit any Lien to be imposed or granted or to exist on the Water Assets other than the Rice Midstream Loan Liens that will be released at Closing and Permitted Liens; (F) issue, sell, pledge, dispose of, grant, encumber or otherwise transfer, or authorize the issuance, sale, pledge, disposition, grant, repurchase, redemption, encumbrance or other transfer, of any equity interest or make any commitment with respect to any equity interest or declare, set aside or make any distributions or dividends, or make any capital contributions, in respect of any equity interest, except for distributions in respect of the Conveyed Interests of cash, cash equivalents and trade receivables; (G) enter into, extend, amend (or waive any right under) in any material respect, or terminate before the expiration of the term thereof, (A) any Contract to which it is a party that is material to the Business, other than to the extent any such Contract terminates in accordance with its terms in the ordinary course of operating the Business consistent with past practices, (B) any Contract of the type described in Section 3.12(a), or (C) any other Contract that is not entered into in the ordinary course of operating the Business consistent with past practices; (H) cancel or compromise any debt or claim, initiate or settle any action, litigation, complaint, rate filing or administrative proceeding involving payment by any Rice Water Entity or to any Rice Water Entity, where the terms of all such settlements, cancellations, compromises or agreements are in excess of $100,000 in the aggregate or adversely impact the Conveyed Interests, the Water Assets or the Business after such settlement or agreement; and (viii) enter into any contract, agreement or commitment to do any of the foregoing. (b) Rice will, and will cause each of the Rice Water Entities to, use commercially reasonable efforts to preserve intact maintain the goodwill of the Business applicable Water Assets in all material respects in such working order and the relationships of Seller condition as is consistent with its customers, vendors, suppliers, Business Employees and others having business relations with the Businesspast practice; (c) continue Rice will, and will cause each of the Rice Water Entities to, use commercially reasonable efforts to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to conduct the Business on a basis in all material respects in the ordinary course of operating the Business consistent with past practicepractices, including preserving intact the goodwill and relationships with customers, suppliers and others having business dealings with them with respect thereto; (d) Rice will, and will cause the Rice Water Entities to, comply in all material respects with all applicable Laws relating to them; and (de) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerRice will, and will cause the Rice Water Entities to, use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation full force without interruption its present insurance policies or comparable insurance coverage of the Business as presently conducted; (e) perform all of Seller’s material obligations under and the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Water Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 2 contracts

Samples: Purchase and Sale Agreement (Rice Midstream Partners LP), Purchase and Sale Agreement (Rice Energy Inc.)

Conduct of the Business. From and after December 31, 2002, and until the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallhereof: (ai) The Seller has continued to operate and carry on the Business in the usual and ordinary manner in which the Business has been conducted in the past; and during such period, the Seller has not made any expenditures or entered into any commitments which, when compared to past operations of the Business are unusual or extraordinary or outside the scope of the normal course of business consistent with past practiceroutine operations other than commitments made by Seller to close the Business if a sale of the Acquired Assets is not completed by May 31, 2003 and other than Seller's contraction of the Business during such period, which contraction subsequent to April 9, 2003 has not had a Material Adverse Effect; (bii) use commercially reasonable efforts to preserve intact The Seller has kept in a current state of repair and operating efficiency (ordinary wear and tear excepted) all tangible personal property used in the goodwill operation of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (ciii) continue The Seller has used commercially reasonable efforts to maintain the Booksgoodwill associated with the Business, and the existing business relationships with their agents, customers, key employees, suppliers and other Persons having relations with it other than those activities directed toward terminating its franchised distributor arrangement with Vishay, terminating designated employees who Purchaser does not wish to hire and terminating leases for the Leased Real Property not included in the Acquired Assets; (iv) Other than those activities directed toward terminating its franchised distributor arrangement with Vishay, terminating designated employees who Purchaser does not wish to hire and terminating leases for the Leased Real Property not included in the Acquired Assets, the Seller has not entered into any contract, agreement or transaction, or relinquished or released any rights or privileges under any contracts or agreements, the performance, violation, relinquishment or release of which would, on the date on which such contract or agreement was entered into, or such rights or privileges were relinquished or released, be reasonably foreseen to have a Material Adverse Effect on the operation of the Business or the Acquired Assets by the Purchaser; (v) The Seller has notified the Purchaser in writing and prior to the Closing will notify the Purchaser in writing of any material adverse change in Acquired Assets or the Business; (vi) The Seller has kept Books and Records and Files of Seller and its Affiliates exclusively or primarily related with respect to the Business in a manner (A) in which entries have been made of all transactions on a basis consistent with past practicepractices, (B) which are true, correct and complete and (C) in which entries have been made only in accordance with GAAP, except for normal year end adjustments; (vii) The Seller has paid current liabilities attributable to the Business as and when such liabilities became due; (viii) Except for purchases of Inventory in the Ordinary Course of Business and in amounts, on terms and for the particular items purchased by the Seller from its other divisions consistent with past practices and no less favorable to the Business than the prices and terms which would be obtained from unrelated third parties, the Seller has not entered into any transactions by and between the Business and any of its other divisions or businesses; (ix) The Seller has not instituted any sales incentive programs amongst its employees, sales representatives or distributors which has resulted in greater than average inventories of the Inventories being held by distributors or customers; and (dx) continue to make all necessary and material filings and payments The Seller has not entered into any arrangements or understandings with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method Person with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, not in their reasonable discretion provided it shall comply with the terms Ordinary Course of the AgreementBusiness, including this Section 7.1. Nothing contained herein shall give Purchaserin respect of: (A) rebate, directly or indirectlyprice protection and volume discount practice and obligations, the right to control or direct the operations of Seller prior to Closing(B) allowance and customer return practices and obligations, (C) co-op advertising and other promotional practices.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Reptron Electronics Inc), Asset Purchase Agreement (Jaco Electronics Inc)

Conduct of the Business. From the date of this Agreement until the earlier to occur of the Closing (or until and the earlier termination of this Agreement in accordance with Section 11.1)Article IX, except as otherwise expressly required permitted or expressly contemplated by applicable Lawthis Agreement, as set forth on Schedule 7.1 in Section 5.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which such consent shall not to be unreasonably withheld, conditioned or delayed)) or as required by applicable Law, Seller shall: , shall cause its Subsidiaries to, and shall use its reasonable best efforts (aincluding by seeking to enforce its rights under the Merger Agreement) operate to cause Tribune and carry on its Subsidiaries to (i) conduct the Business in all material respects in the ordinary course of business consistent with past practices and use commercially reasonable efforts to cause each of the Station Sharing Companies to conduct the Business in the ordinary course of business consistent with past practices, (ii) use reasonable best efforts to maintain the Station Licenses and their respective rights thereunder, (iii) use reasonable best efforts to preserve intact in all material respects, with respect to the Business, its current business organization, ongoing businesses and significant relationships with third parties, and (iv) use reasonable best efforts to preserve the relationships of the Business with its employees in accordance with the ordinary course of business and consistent with past practice. Without limiting the generality of the foregoing, from the date of this Agreement until the earlier to occur of the Closing and the termination of this Agreement in accordance with Article IX, except as otherwise permitted or contemplated by this Agreement, as set forth in Section 5.1 of the Disclosure Schedule, as consented to in writing by Buyer (such consent not to be unreasonably withheld, conditioned or delayed) or as required by applicable Law, Seller shall not, and shall cause its Subsidiaries not to, and shall use reasonable best efforts (including by seeking to enforce its rights under the Merger Agreement) to cause Tribune and its Subsidiaries not to, in each case, solely in respect of the Business, the Stations or the Purchased Assets: (a) sell, assign, license, lease, transfer, abandon or create any Lien (other than any Permitted Lien) on, or otherwise dispose of, any of the Purchased Assets, other than (i) such sales, assignments, licenses, leases, transfers, abandonments, Liens or other dispositions that are in the ordinary course of business and are not material to the Business, taken as a whole, (ii) as listed on Section 5.1(a)(ii) of the Disclosure Schedule or (iii) in order to comply with and in accordance with, Section 5.2; (b) use commercially reasonable efforts to preserve intact other than (i) in the goodwill ordinary course of business consistent with past practices (including renewals consistent with the terms thereof), (ii) for those Contracts that can be cancelled by Seller or Tribune, as applicable, or any of their respective Subsidiaries without cause (and without penalty) on less than ninety (90) days’ notice or (iii) as permitted by Section 5.1(c)(i), (A) amend or modify in any material respect or terminate (excluding (1) terminations or renewals upon expiration of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations term thereof in accordance with the Businessterms thereof and (2) renewals for a term of one (1) year or less) any Station Agreement, (B) enter into any Contract that would constitute a Station Agreement if in effect on the date hereof (excluding Contracts with a term of one (1) year or less) or (C) waive, release or assign any material rights, claims or benefits, or grant any material consent, under any Station Agreement; provided, that in no event shall Seller or Tribune, as applicable, or any of their respective Subsidiaries take any action covered by this Section 5.1(b) with respect to any Station Agreement (x) that is or would be a network affiliation agreement or (y) that relates to the receiving or obtaining of Program Rights; (c) continue other than as required by applicable Law or the existing terms of any Employee Plan or Collective Bargaining Agreement in effect on the date hereof, (i) grant or increase any severance or termination pay to maintain any Employee above the Books, Records and Files severance or termination pay that would be due under the severance plans of Seller and its Affiliates exclusively or primarily related to Tribune, as applicable, in effect as of the Business on a basis consistent date hereof; (ii) enter into or amend any employment, severance or termination agreement with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities any Employee or hire any Employee except, in each case, in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation any of the Business as presently conducted; following actions (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method and with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreementhiring new Employees as permitted by clauses (w) and (x) below), settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable taken in the ordinary course of business, business consistent with past practices (and otherwise subject to the Seller’s ability to pursue other restrictions in good faith any bona fide disputes; this Section 5.1(c)); (hw) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose the hiring of any Purchased Assetson-air talent, producer, news director or general manager with annual base compensation equal to or less than $350,000; (x) the hiring of any Employee with an annual base compensation equal to or less than $250,000 in order to fill a vacant position; (y) any promotion or increase in duties and responsibilities of an Employee commensurate with a promotion or an increase in duties and responsibilities; or (z) any Contract renewal upon the expiration of an Employment Agreement for Employees who are not executive officers; provided, that such renewal or extension contains substantially similar terms as those in the Employment Agreement of other than the sale Employees in such positions or similar positions as have been provided by Seller or Tribune, as applicable, or any of Inventory their respective Subsidiaries and other dispositions of assets are made in the ordinary course of business consistent with past practice; ; (iiii) not establish, adopt, terminate or amend any (iA) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person other Employee Plan (including any current plan, agreement or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights arrangement that would be a Employee Plan if in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts effect on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); ) or (nB) not waive, release, assign except as a result of good-faith negotiations with a labor union or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except labor organization in the ordinary course of business consistent with past practice, Collective Bargaining Agreement; (iv) take any action to accelerate the vesting or payment, or fund or secure the payment, of compensation (including any equity-based compensation) or benefits of any Employee under a Employee Plan or otherwise; or (v) except as set forth on Section 5.1(c)(v) of the Disclosure Schedule, grant any increase in compensation, bonus or other payments or benefits payable to any Employee, except for (A) merit and annual salary increases as set forth on Section 5.1(c)(v) of the Disclosure Schedule and (B) short-term annual bonus payments, in each case, in the ordinary course of business consistent with past practices and as permitted by Section 6.2 of this Agreement; (pd) comply in all material respects with all Laws applicable to respect of the Business andBusiness, promptly following receipt thereofmaterially change the methods, give to the Purchaser copies principles or practices of any notice received from financial accounting or annual accounting period, except as required by GAAP or by any Governmental Authority or other Person alleging any violation applicable Law; (e) modify or accede to the modification of any such Laws; andof the Station Licenses if doing so is reasonably likely to be materially adverse to the interests of Buyer and its Subsidiaries after giving effect to the consummation of the transactions contemplated by this Agreement in the operation of the Stations or fail to provide Buyer with a copy of (and a reasonable opportunity to review and comment on) any application for the modification of any of the Station Licenses reasonably in advance of filing with the FCC, except, in each case, as required by Law or as required in connection with the broadcast incentive auction, reassignment and repack conducted by the FCC pursuant to Section 4603 of the Middle Class Tax Relief and Job Creation Act (Pub. L. No. 112- 96, §6403, 000 Xxxx. 000, 225-230 (2012)) (the “Incentive Auction & Repack”); (qf) not take apply to the FCC for any construction permit that would restrict in any material actions respect the Stations’ operations or make any material change in the Purchased Assets that could reasonably be expected to delay is not in the Closing; provided, howeverordinary course of business, except as expressly provided may be necessary or advisable to maintain or continue effective transmission of the Stations’ signals within their respective service areas as of the date hereof, except, in each case as required by Law or as required in connection with the Incentive Auction & Repack; (g) fail to timely make any retransmission consent election with any MVPDs that reported more than 50,000 paid subscribers to Seller, Tribune or any of any of their respective Subsidiaries for September 2018 located in or serving the Stations’ Markets; (h) fail to take any action required to repack or modify any Station as required by the Incentive Auction & Repack; or (i) agree, resolve or commit to do any of the foregoing. Buyer acknowledges and agrees that: (A) nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein Agreement shall give PurchaserBuyer or any of its Affiliates, directly or indirectly, the right to control or direct the operations of Seller or Tribune, as applicable, prior to the Closing, (B) prior to the Closing, Seller or Tribune, as applicable, or the Business shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over the operations of the Stations and (C) notwithstanding anything to the contrary set forth in this Agreement, no consent of Buyer shall be required with respect to any matter set forth in this Section 5.1 or elsewhere in this Agreement to the extent that the requirement of such consent would violate any applicable Law.

Appears in 2 contracts

Samples: Asset Purchase Agreement, Asset Purchase Agreement (Nexstar Media Group, Inc.)

Conduct of the Business. From the date of this Agreement until the Closing (or hereof until the earlier to occur of the Closing and the termination of this Agreement in accordance with Section 11.1)its terms, except (i) as required by Law, (ii) as expressly required provided by applicable Law, the Ancillary Agreements or as set forth on Schedule 7.1 in Section 4.1 of the Seller Disclosure Schedule, as contemplated by Letter or required to implement this Agreement or any Ancillary Agreement, or (iii) as otherwise waived requested in writing or consented to in writing by Purchaser (Buyer, which consent shall not be unreasonably withheldconditioned, conditioned withheld or delayed), Sellers shall (x) cause the Business to be conducted in the Ordinary Course of Business and (y) use reasonable best efforts to preserve intact its business organizations, material assets and the Business’s relationships with Governmental Authorities, customers, suppliers and others having material business dealings with the Business. Without limiting the generality of the foregoing, from the date hereof until the earlier to occur of the Closing and the termination of this Agreement in accordance with its terms, except (i) as required by Law, (ii) as expressly provided by the Ancillary Agreements or as set forth in Section 4.1 of the Seller shallDisclosure Letter or (iii) as otherwise consented to in writing by Buyer, which consent shall not be unreasonably conditioned, withheld or delayed, Sellers shall not permit any of the Transferred Subsidiaries to, or, to the extent within the control of Sellers or any of their Controlled Affiliates by way of consent, approval, veto or other rights with respect thereto, permit the Joint Venture to, and solely with respect to the Business, Sellers shall not, and shall not permit its other Controlled Affiliates to: (a) operate and carry on amend, supplement, restate, modify or rescind the Business certificate of incorporation or by-laws (or other comparable organizational documents) of any of the Transferred Subsidiaries or the Joint Venture in the ordinary course of business consistent with past practicea manner materially adverse to Buyer; (b) use commercially reasonable efforts except (1) as may be required under applicable Law, (2) by any Labor Agreement, or (3) by the terms of any Benefit Plan in existence as of the date of this Agreement and set forth on Section 2.15(a) of the Seller Disclosure Letter, (i) grant, materially increase or decrease, or take any action to preserve intact accelerate the goodwill payment, vesting or funding of, any compensation or benefit, including change in control, incentive, retention severance, termination pay, to any Business Employee or other individual service provider of the Business, other than (A) compensation increases in the Ordinary Course of Business for any Business Employee or individual service provider of the Business and whose annual base compensation does not exceed $150,000 or (B) payments for Grandfathered PTO or (ii) adopt, establish, enter into, amend, modify or terminate any Benefit Plan (or any other benefit or compensation plan, policy, program, agreement or arrangement that would be a Benefit Plan if in effect as of the relationships date hereof) other than (A) any such action in respect of a Seller with its customers, vendors, suppliers, Plan that no current of former Business Employees or other individual service providers of the Business participate in and others having business relations with that would not cause any change to the compensation or benefits of any Business Employee or other individual service providers of the Business, (B) changes to any Benefit Plan that is a group health or welfare plan during the plan’s annual renewal or open enrollment process in the Ordinary Course of Business, (C) any adoption or amendment by Sellers that applies to Sellers and their Controlled Affiliates as a whole, or to one of more of Sellers’ business units as a whole, to the extent generally applied to all substantially similarly situated employees of Sellers or their Controlled Affiliates in a manner that does not disproportionately affect the Business Employees or that could reasonably be expected to materially increase the Liabilities of the Transferred Subsidiaries or (D) routine, immaterial or ministerial amendments that do not materially increase benefits or result in a material increase in administrative costs; (c) continue (A) hire or engage any new Business Employee or other individual service provider of the Business who provides services primarily dedicated or primarily related to maintain the BooksBusiness, Records unless such hiring or engagement is in the Ordinary Course of Business and Files is with respect to employees or service providers having an annual compensation not reasonably expected to exceed $150,000, (B) other than for “cause” and with prompt notice to Buyer, terminate the employment or service of Seller and its Affiliates exclusively any Business Employee or other individual service provider of the Business who provides services primarily dedicated or primarily related to the Business on with annual compensation reasonably expected to exceed $150,000, (C) modify the services of any Business Employee such that he or she ceases to be a basis consistent with past practice; andBusiness Employee, or (D) modify the services of any employee of Seller or its Affiliates who is not a Business Employee such that he or she becomes a Business Employee; (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerenter into, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedamend, terminate or otherwise modify any Labor Agreement; (e) perform all issue, sell or grant any Transferred Subsidiaries Interests or equity interests in the Joint Venture, or any other shares of Seller’s material obligations under capital stock of or other voting or equity interests in (including any securities exercisable or exchangeable for or convertible into (including options, restricted equity units, warrants or other equity or equity-based awards), or rights to purchase or subscribe to, shares of capital stock of or other voting or equity interests in) any of the Assigned Contracts in accordance Transferred Subsidiaries or the Joint Venture, or enter into any arrangement or Contract with respect to the terms issuance, sale or grant thereof; (f) refrain from making, changing change in any material respect the accounting policies or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of practices presently used by the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets Transferred Subsidiaries or the Business Business, except as required by GAAP or necessary to conform to changes in a Post-Closing Tax Periodapplicable Law, statutory or regulatory accounting rules or GAAP; (g) pay and discharge all material Liabilities related to effect any merger, consolidation, recapitalization, reclassification, stock split or like change in its capitalization of any of the Purchased Assets as they become due and payable in Transferred Subsidiaries or the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputesJoint Venture; (h) unless required by Law, voluntarily recognize or certify any labor union, labor organization, works council, or group of employees as the bargaining representative for any Business Employees; (i) amend or modify in any material respect or terminate any Material Contract or adopt or enter into a new Contract that would have been a Material Contract if adopted or entered into prior to the date hereof, in each case other than Contracts with customers and suppliers in the Ordinary Course of Business that would not be required to be set forth on Section 2.8(a)(v) or Section 2.8(a)(vi) of the Seller Disclosure Letter (other than those Contracts that would be listed on Section 2.8(a)(v) of the Seller Disclosure Letter solely because they contain most favored nations restrictions on the Business or the Transferred Subsidiaries; provided that (i) in the case of an amendment, modification, extension or renewal of such Contract, such most favored nations restrictions shall be not less favorable to the Business or the Transferred Subsidiaries following such amendment or modification than such obligations contained in the existing Contract with the applicable counterparty and (ii) in the case of an adoption or entry into a new Contract (other than a renewal of an existing Contract), such most favored nations restrictions shall not conflict with or result in a default under any of the other Material Contracts and shall be not less favorable to the Business or the Transferred Subsidiaries than such obligations contained in the form of most favored nations provision set forth on Section 4.1(i) of the Seller Disclosure Letter); (j) incur, create, assume or otherwise become liable for any Indebtedness for borrowed money, other than (i) Indebtedness under the Securitization Facility, the Existing Notes and any refinancing thereof and (ii) any Indebtedness for borrowed money that will be repaid, settled, and/or as to which the Business, as applicable, will be released from obligations thereunder at or prior to the Closing; (k) permit any Lien to be placed on any asset of the Business (other than on Excluded Assets) other than Permitted Liens; (l) make any loan or capital contribution to, or investment in, any Person, except for extensions of trade credit in the Ordinary Course of Business (m) sell, lease, licenseassign, transfer, abandonconvey, pledge, encumber (other than Permitted Encumbrances), fail to maintain lease or otherwise dispose of any Purchased Assetsmaterial tangible properties, rights or assets or Business Real Property of any of the Transferred Subsidiaries, the Business or, solely with respect to the Business, Sellers, in each case other than sales of inventory (including rotables) or disposal of obsolete assets in the Ordinary Course of Business; (n) sell, assign, transfer, convey, license, abandon, permit to lapse or otherwise dispose of any material Transferred Intellectual Property or Transferred Licensed Intellectual Property, except for non-exclusive licenses of Transferred Intellectual Property granted in the Ordinary Course of Business; (o) withdraw, fail to renew, or otherwise dispose of any Owned PMA or Owned DER; (p) (i) make any capital expenditures or commitments for capital expenditures in excess of $500,000 individually or $2,000,000 in the aggregate, other than in accordance with the sale budget of Inventory and other dispositions the Business that has previously been provided to Buyer or (ii) fail to make, materially delay, materially postpone or cancel any capital expenditures or commitments specifically contemplated by the budget of assets in the ordinary course of business consistent with past practiceBusiness that has previously been provided to Buyer; (iq) not (i) exclusively licenseacquire, assign by merger, consolidation, acquisition of stock or transfer any Purchased Business Intellectual Property assets, or any Purchased Business Technology to otherwise, any Person (including or material business, material assets or material division thereof, other than acquisitions of any current raw materials or former employee or consultant inventory in the Ordinary Course of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business TechnologyBusiness; (jr) not grant settle or compromise any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufactureLitigation, or enter into any purchase commitments consent decree or settlement agreement with any Governmental Authority, against or affecting the Business, in each case, other than settlements or compromises of any Litigation that solely involves a monetary payment (and not any ongoing obligation of the Business) where the amount actually paid in settlement or compromise by Sellers or their Controlled Affiliates (net of any amounts to purchase, Inventory which Sellers or their Controlled Affiliates are entitled pursuant to insurance policies) does not exceed $500,000 individually or $1,500,000 in amounts outside the ordinary course of businessaggregate; (ls) use commercially reasonable efforts not fail to keep current and in full force and effect (i) make, revoke, change or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify amend any material benefit or claim under Tax election, (ii) amend any Assigned Contract; material Tax Return, (oiii) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation closing agreement or similar agreement with any such employee Governmental Authority with respect to Income Taxes or other material Taxes, (except for iv) settle or compromise any retention bonus plan which may be mutually agreed between Seller and Purchaser)material Tax Liability, (v) extend or terminate waive (or agree to extend or waive) the employment application of any such employee without causestatute of limitations regarding the assessment or collection of any material Tax, (vi) compromise or surrender any right to claim a refund or credit of any material Taxes or (vii) prepare any Income Tax or other material Tax Return (other than a Parent Tax Group Return) in a manner inconsistent with past practices, except in the ordinary course of business consistent with past practiceas otherwise required by Law; (pt) comply in all material respects with all Laws applicable fail to the Business andmake, promptly following receipt thereofmaterially delay, give to the Purchaser copies of materially postpone or cancel any notice received from any Governmental Authority capital commitment or other Person alleging investment into the joint venture arrangement set forth on Section 4.1(s) of the Seller Disclosure Letter (the “New JV”) specifically contemplated the budget that has previously been provided to Buyer or as otherwise set forth in any violation of any such Laws; anddefinitive agreements entered into in connection with the New JV; (qu) not take hire or engage any material actions that could reasonably be expected Third Party in any territory outside the United States; or (v) authorize, agree, resolve or commit to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms do any of the Agreement, including this Section 7.1foregoing. Nothing contained herein in this Agreement shall give PurchaserBuyer, directly or indirectly, the right to control or direct Sellers’ or any of their Affiliates’ (including the operations of Seller prior to ClosingTransferred Subsidiaries’) business or operations.

Appears in 2 contracts

Samples: Securities and Asset Purchase Agreement (Triumph Group Inc), Securities and Asset Purchase Agreement (Aar Corp)

Conduct of the Business. From During the date of this period from the Agreement until Date to the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as Parties shall and shall cause the Seller Group to (except to the extent expressly contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned CMED or delayed), Seller shall: (aCMED Sub in their reasonable discretion) operate and carry on the SPR Business in the usual, regular and ordinary course, consistent with past practice, in substantially the same manner as heretofore conducted, to pay debts and Taxes when due subject to good faith disputes over such debts or Taxes, to pay or perform other obligations when due, and to use all reasonable efforts consistent with past practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees and preserve its relationships with customers, suppliers, distributors, licensors, licensees, and others having business dealings with it, to the end that its goodwill and ongoing SPR Business shall be unimpaired. The Seller Parties shall and shall cause the Seller Group to promptly notify CMED and CMED Sub of any event or occurrence not in the ordinary course of business the SPR Business, consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased event which could have a Material Adverse Effect on any Seller Group Member, the Assets, other than the sale of Inventory PRC IP Rights and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonRelevant IP Rights, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay result in the representations and warranties of the Seller Parties in this Agreement or the Related Agreements not being true and correct as of the Closing; provided, however, except as expressly provided in or prevent the Seller Group from performing or cause the Seller Group not to perform the Seller Parties covenants under this Section 7.1, nothing in this Section 7.1 shall prohibit Seller Agreement or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingRelated Agreements.

Appears in 2 contracts

Samples: Asset Acquisition Agreement, Asset Acquisition Agreement (China Medical Technologies, Inc.)

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)7.1, Seller shall cause the Transferred Companies to: (x) conduct the Business in all material respects in the ordinary course consistent with past practice; and (y) use their reasonable best efforts to preserve intact the Business and the current relationships and goodwill of the Transferred Companies with customers, suppliers, contractors, licensors, employees, agents, producers, distributors, insureds, Insurance Regulators and others having business dealings with them. Without limiting the generality of the foregoing, from the date hereof until the Closing or the termination of this Agreement in accordance with Section 7.1, except as otherwise expressly permitted or required by applicable Law, this Agreement or as set forth on Schedule 7.1 in Section 4.1 of the Seller Disclosure ScheduleLetter, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser without the prior written consent of Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallshall cause the Transferred Companies not to: (a) operate and carry on (i) split, combine or reclassify any of its outstanding capital stock or issue or authorize the Business issuance of any other securities in respect of, in lieu of or in substitution for shares of its outstanding capital stock or (ii) purchase, redeem or otherwise acquire any shares of outstanding capital stock of the ordinary course Transferred Companies or any rights, warrants or options to acquire any such shares, other than, in each case, any such transaction solely involving Transferred Companies following which each Transferred Company remains a direct or indirect wholly owned Subsidiary of business consistent with past practiceSeller; (b) use commercially reasonable efforts to preserve intact the goodwill issue, sell, grant, pledge or otherwise encumber any shares of capital stock of any of the Business and the relationships Transferred Companies, any other voting securities or any securities convertible into, or any rights, warrants or options to acquire, any such shares, voting securities or convertible securities, other than, in each case, any such transaction solely involving Transferred Companies following which each Transferred Company remains a direct or indirect wholly owned Subsidiary of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessSeller; (c) continue amend its Organizational Documents in a manner that would be adverse to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; andBuyer’s interests; (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain license or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant by way of Seller or any contractor or commercial partner of Seller); and (iireinsurance) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract assets (other than terminations or expirations at Investment Assets, which are the end subject of clause (y) of this Section 4.1) of any of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without causeTransferred Companies, except in the ordinary course of business consistent with past practice; (pe) comply enter into any Contract with respect to any merger, consolidation, liquidation, dissolution or business combination (including any acquisition of assets or liabilities comprising a business or a segment, division or line of business) involving any of the Transferred Companies; (f) purchase, sell, lease, pledge, exchange, encumber or otherwise dispose or acquire any property or assets (other than transactions occurring in all the ordinary course of business consistent with past practice and other than Investment Assets, which are the subject of clause (y) of this Section 4.1) for which the aggregate consideration paid or payable in any individual transaction is in excess of $2,000,000 or in the aggregate in excess of $7,500,000; (g) (i) amend, extend, renew or otherwise modify in any material respects respect any of the Leases, (ii) assign or sublease any material portion of any of the Leased Real Property or (iii) enter into any new lease, terminate any lease or buy any real property; (i) modify or amend in any material respect or terminate any material Contract, (ii) waive, release or assign any material rights or claims under any material Contract or (iii) enter into any material Contract, in each case other than in the ordinary course of business consistent with all Laws applicable past practice; or (x) modify, amend or terminate any OB Contract or (y) waive, release or assign any rights or claims under any OB Contract; (i) incur any financial Indebtedness for borrowed money from third party lending sources (other than current trade accounts payable incurred in respect of property or services purchased in the ordinary course of business consistent with past practice) or assume, grant, guarantee or endorse, pledge or otherwise secure any assets or property or otherwise as an accommodation become responsible for (whether primary or secondary) the obligations of any Person (other than a Transferred Company), or make any third party loans or advances (other than, in each case, in the ordinary course of business consistent with past practice), for individual amounts in excess of $1,000,000 or in the aggregate in excess of $2,000,000; (j) default under any Indebtedness, or fail to pay or satisfy when due any Liability, of any of the Transferred Companies in excess of $500,000 (other than any such Liability that is being contested in good faith); (k) forgive, cancel or compromise any material debt or claim or waive or release any right, in each case other than in the ordinary course of business consistent with past practice or pursuant to an Insurance Contract; (l) enter into any new line of business; (m) make any capital expenditures in excess of $2,000,000 individually or $5,000,000 in the aggregate (not including those made in the ordinary course of business); (n) voluntarily abandon any material Permit, except to the Business andextent required in order to comply with applicable Law, promptly following receipt thereofor voluntarily terminate, give fail to renew or permit to lapse any material Permit; (o) settle or compromise or agree to the Purchaser copies dismissal of any Litigation or threatened Litigation (in each case, except for claims under any insurance policies within applicable policy limits that do not allege bad faith), other than any settlement or compromise that involves solely cash payments of less than $5,000,000 in any individual case or of less than $10,000,000 in the aggregate (provided that Seller shall provide prior written notice received from any Governmental Authority or other Person alleging any violation to Buyer of any such Laws; andsettlement or compromise that involves solely cash payments in excess of $2,000,000 in any individual case); (p) other than in the ordinary course of business consistent with past practice, dispose of, permit to lapse, abandon, dedicate to the public domain, waive, release or assign any rights, or settle any claims, or permit the creation of any material Lien with respect to any Intellectual Property material to the Business; (q) not take (i) establish, adopt, amend or terminate any Company Benefit Plan or any arrangement which upon its establishment or adoption would constitute a material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller Company Benefit Plan or its Affiliates from conducting their businesses, including the Business(ii) materially amend or terminate any related material insurance policy or related material vendor contract, in their reasonable discretion provided it shall comply either case except (A) in the ordinary course of business consistent with past practice or (B) as may be required by applicable Laws or pursuant to the terms of any Company Benefit Plan as in effect on the Agreementdate hereof; (r) make or promise to make any material bonus, profit-sharing or similar payment, or fund, increase or accelerate the vesting, payment or amount of wages, salary, commissions, fringe benefits, severance benefits, deferred compensation or other compensation or benefits (including equity-based compensation, whether payable in cash or otherwise) or remuneration payable to, or for the benefit of, any Employee, in each case except (i) as required by applicable Law or the terms of any Company Benefit Plan as in effect on the date hereof and (ii) with respect to Employees other than the LTIP Employees, to the extent such action is (x) not material or (y) made in the ordinary course of business consistent with past practice (including in connection with promotions and employee review cycles consistent with past practice); (i) terminate the employment of any Key Employee (other than for cause) or hire any new employee who would be, upon hiring, a Key Employee or (ii) enter into a collective bargaining agreement or similar labor agreement with respect to any Employees or renew, extend or renegotiate any existing collective bargaining agreement or similar labor agreement with respect to any Employees, except, in the case of this Section 7.1. Nothing contained herein shall give Purchaserclause (ii), directly as may be required by applicable Law; (i) settle or indirectly, compromise any Tax Audit or forgo the right to control any refund of Taxes; (ii) change any of the Transferred Companies’ methods, policies or direct practices of Tax accounting or methods of reporting income or deductions for Tax purposes from those employed in the operations preparation of Seller prior its most recently filed Tax Return; (iii) amend any Tax Return of or with respect to Closingany of the Transferred Companies; (iv) enter into any agreement with a Tax Authority with respect to any Transferred Company, or terminate any agreement entered into with a Tax Authority with respect to any Transferred Company that is in effect as of the date hereof; (v) alter or make any Tax election; (vi) request a ruling relating to Taxes; (vii) grant any power of attorney relating to Tax matters; or (viii) prepare any Tax Return in a manner that is not consistent with past practices; (u) terminate, cancel or amend, or cause the termination, cancellation or amendment of, any material insurance coverage (and any surety bonds, letters of credit, cash collateral or other deposits related thereto required to be maintained with respect to such coverage) maintained by the Transferred Companies that is not replaced by comparable insurance coverage; (v) change in any material respect the terms for, or policies with respect to, the payment of commissions to any of its insurance agents, brokers or producers; (w) enter into any reinsurance commutations (other than as contemplated by Section 4.16 and the Commutation Agreement), or enter into, amend, modify or otherwise revise any reinsurance agreement or treaty that results in a material change in risk or coverage; (x) make any material change in its underwriting, reinsurance, claims administration, selling, reserving, Tax or financial accounting policies, guidelines, practices or principles (other than any change required by a change in applicable Laws, GAAP or SAP or, in respect of underwriting or claims administration policies, guidelines, practices or principles, in the ordinary course of business consistent with past practice); (y) other than as set forth in Schedule 4.1(y), amend or otherwise change the Investment Guidelines or make any investment or manage its Investment Assets other than in compliance with the Investment Guidelines; (z) during the period from the date hereof to the Closing Date, spend less than 90% (without the consent of Buyer) or more than 100% (without the consent of Seller), in the aggregate, of the advertising spending called for during such period by the advertising plan set forth on Schedule 4.1(z) (for purposes of calculating such aggregate percentage, the spending called for in any period by such advertising plan that is not fully completed between the date hereof and the Closing Date shall be determined on a pro rata basis based on the number of days of such partial period that actually elapsed between the date hereof and the Closing Date), with the actual amount of such spending within such limits being determined by the management of the Transferred Companies in its sole discretion; or (aa) agree or commit to do any of the foregoing.

Appears in 2 contracts

Samples: Stock Purchase Agreement (Allstate Corp), Stock Purchase Agreement (White Mountains Insurance Group LTD)

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except (i) as expressly required contemplated by applicable Law, (ii) as set forth on Schedule 7.1 of otherwise expressly provided by the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary AgreementTransaction Documents, or as otherwise waived or consented to in writing by Purchaser (iii) with Buyer’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall, and shall cause its Subsidiaries to, conduct the Business in the ordinary course consistent with past practice (including with respect to the timely collection of accounts receivable and payment of accounts payable in the ordinary course consistent with past practice) and shall use its commercially reasonable efforts to: (x) preserve intact the present business organizations and goodwill of the Business, (y) preserve the present relationships of the Business with suppliers and other business partners and keep available the services of its present officers and key employees who are Business Employees, and (z) maintain the properties and Equipment related to the Business in good repair and operation condition (subject to normal wear). Without limiting the generality of the foregoing, from the date hereof until the Closing Date, except (i) as expressly contemplated by applicable Law, (ii) as otherwise expressly provided by the Transaction Documents, (iii) as set forth on Schedule 5.01, or (iv) with Buyer’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), with respect to the Business, Seller shall not and shall cause its Subsidiaries not to: (a) operate sell, lease, license, transfer, abandon, fail to renew or otherwise dispose of any Purchased Assets or IPCo Intellectual Property (or any interests therein) except (i) pursuant to existing Material Contracts, (ii) sales of inventory or sales, transfers or other dispositions of other immaterial assets, (iii) non-exclusive licensing of Business Intellectual Property and carry IPCo Intellectual Property in the ordinary course of business consistent with past practice, (iv) abandonment of or failure to renew Business Intellectual Property or IPCo Intellectual Property of de minimis value or (v) Permitted Non-Operating Restaurant Sales in accordance with the terms hereof; (b) create, incur, permit, allow or take any action to create any Lien on any Business Real Property, any other Purchased Asset or IPCo Intellectual Property, other than Permitted Liens; (c) (i) permit, authorize or incur any capital expenditures with respect to the Business, except: (A) as disclosed in Schedule 5.01(c), (B) pursuant to existing Material Contracts, (C) in accordance with the capital expenditures budget for the Business previously provided to Buyer or (D) for capital expenditures that do not exceed $250,000 individually or $1,000,000 in the aggregate or (ii) fail to make capital expenditures set forth in such budget in the ordinary course of business consistent with past practice; (bd) use commercially reasonable efforts to preserve intact the goodwill of implement any new, or modify any existing, coupon or promotional offer program in a manner which is inconsistent with such programs offered by the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related prior to the Business on a basis date hereof in the ordinary course consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale levels of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (if) not (iother than in connection with actions permitted by Section 5.01(c) exclusively licenseor as otherwise contemplated by this Agreement, assign make any loans, advances or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandoncapital contributions to, or permit to lapse investments in, any rights other Person or make, issue, assume or guarantee any Indebtedness, in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent each case, with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related respect to the Business; (m) not amendBusiness and that would be an Assumed Liability, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except advances to employees in the ordinary course of business consistent with past practice; (pg) comply (i) enter into any Lease (including any associated Lease Guarantees) or (ii) enter into any Restaurant Contract that would be required to be disclosed in all material respects Schedule 3.08 if such Restaurant Contract were in place as of the date of this Agreement, other than any such Restaurant Contract entered into in the ordinary course of business consistent with all Laws past practice and other than any Replacement Contract that is “substantially similar” (as defined in Section 5.05) to the applicable Shared Contract; (h) except as required by Law, amend or otherwise modify, terminate, cancel, extend or waive any benefits under any Material Contract (other than purchase orders in the ordinary course of business consistent with past practice) or Lease, other than any renewal entered into in the ordinary course of business consistent with past practice upon the expiration of such Material Contract or such Lease, in each case on terms no less favorable to the Business andthan in effect prior to such renewal or termination in the ordinary course of business consistent with past practice upon the expiration of such Material Contract or such Lease in accordance with its terms, promptly following receipt thereof, give and excluding any Material Contract that is terminated in connection with a Permitted Non-Operating Restaurant Sale prior to the Purchaser copies Closing in accordance with the terms hereof; (i) enter into any Replacement Contract, other than any Replacement Contract that is “substantially similar” (as defined in Section 5.05) to the applicable Shared Contract; (j) purchase or sell any real property (including, without limitation, any land or material improvement thereon) or any interest therein other than a Permitted Non-Operating Restaurant Sale in accordance with the terms hereof; (k) cancel or forfeit any Permit or take any action or fail to take any action with the purpose or having the effect of causing any Permit not to be in full force and effect; (l) enter into any Contract or Lease that limits or otherwise restricts the Business after the Closing Date from engaging or competing in any line of business, in any location or with any Person; (m) waive, release, assign, cancel, compromise, settle, or offer or propose to settle, any Action involving the Business or relating to the transactions contemplated by this Agreement, other than any Excluded Liability and other than any workers’ compensation claims, unless (1) the amount involved in such waiver, release, assignment, compromise, settlement or offer to settle does not exceed $100,000 individually or $1,000,000 in the aggregate and (2) such waiver, release, assignment, compromise, settlement or offer to settle does not impose any injunctive or other non-monetary relief or criminal fines relating to the Business and does not impose any sanction or restriction upon the conduct or operation of the Business; (n) with respect to any Purchased Assets, make or change any material Tax election, change any annual Tax accounting period, adopt or change any method of Tax accounting, amend any Income Tax or other material Tax Return, enter into any closing agreement, settle any material Tax claim, audit or assessment, or take any affirmative action to surrender any right to claim a material Tax refund, in each case except if such action will have no effect on the Tax Liability of Buyer or any of its Affiliates in a Post-Closing Tax Period; (o) make any change in any method of accounting or accounting practice of Seller or any of its Subsidiaries with respect to the Business, except for any such change required by reason of a change in GAAP or applicable Law; (p) except as set forth in Schedule 5.01(p), (i) negotiate or enter into any collective bargaining agreement or any employment, deferred compensation, severance, retirement or other similar agreement with or relating to any Business Employee for which Buyer or its Affiliates could have any Liability (or any amendment to any such existing agreement), (ii) other than as provided under any severance plan, policy or agreement in effect on the date of this Agreement that covers such Business Employee and is disclosed in the Disclosure Schedule, grant any new severance or termination pay to any Business Employee, (iii) increase the compensation payable, or grant any equity-based award, or grant or pay any fringe benefit or any bonus, severance, retention or termination amount, to any Business Employee other than promotions, merit based increases and/or market adjustments in the ordinary course of business consistent with past practices or as required by Law or the terms of any notice received from any Governmental Authority Employee Plan or other Person alleging any violation Contract in effect on the date of this Agreement and that is disclosed in the Disclosure Schedule (it being understood that the payment in the ordinary course of business consistent with past practice prior to the Closing Date of any bonus, fringe benefit, severance or termination amount pursuant to the terms of an Employee Plan in effect on the date of this Agreement shall not be prohibited by this subclause (iii) even though Seller may not be legally obligated to make such Laws; andpayment), (iv) implement any employee layoffs that would require Seller to provide any notification to any Business Employee under the WARN Act if Buyer could have any Liability in connection therewith, or (v) hire or terminate any officer, employee or other service provider of the Business with annual base compensation in excess of $150,000, other than a termination for cause; (q) except as set forth in Schedule 5.01(q), to the extent required under the terms of any Employee Plan, or as required by Law, (i) adopt, amend or terminate any Employee Plan (or plan, policy agreement or arrangement that would be an Employee Plan if in effect on the date hereof), except (A) as may be implemented with respect to Seller’s employees generally, provided that any such adoptions, amendments or termination of Employee Plans need not take be considered by Buyer in fulfilling its obligations under Section 7.01 and Section 7.02 of this Agreement and (B) for immaterial amendments to Employee Plans that would not result in material Liability to Buyer, or (ii) exercise any discretion to accelerate the vesting or payment of any compensation or benefit under any Employee Plan; (r) amend, modify, adopt, approve, consent to or propose any change in the respective Organizational Documents of Seller or its Subsidiaries; (s) make any material actions acquisition of any business that could reasonably would constitute Purchased Assets; (t) close or shutdown any Restaurant or permit any Restaurant to be expected to delay closed or shutdown other than in the Closing; ordinary course of business consistent with past practice or for repairs or remodels as set forth on Schedule 5.01(t), provided, howeverfurther, that without the prior written consent of Buyer, neither Seller nor its Subsidiaries shall close or shut down any Restaurant in contravention of restrictions against such closure recorded against title or contained in the applicable Leases for such Restaurant, as applicable; (u) take or consent to any action before any Governmental Authority, the intent or effect of which would be to change the present zoning of or other land use limitations, upon any of the Business Real Property, or its potential use; (v) disclose or agree to disclose to any Person, other than Representatives of Seller, any trade secret material to the Business, except in the ordinary course of business consistent with past practice; or (w) agree or commit to do any of the foregoing. BE Partner owns one hundred percent (100%) of the equity interests of IPCo and Seller shall not permit BE Partner to transfer any equity interest of IPCo to any other Person, including Seller’s other Subsidiaries and Affiliates. Except as expressly provided in this Section 7.1Agreement or the IPCo LLC Agreement, Seller shall not permit IPCo to become an obligor or guarantor under, or otherwise subject to, any Indebtedness and shall not permit IPCo to conduct any operations or own any assets or Liabilities other than (i) the IPCo Intellectual Property or (ii) any assets or Liabilities incidental to its ownership of the IPCo Intellectual Property and its status as a bankruptcy remote special purpose entity. For the avoidance of doubt, Seller shall be permitted to (i) collect all cash from the Restaurants prior to the Closing Date and (ii) receive and retain all payments related to the Business prior to the Closing Date. Without in any way limiting any Party’s rights or obligations under this Agreement, the Parties agree that prior to Closing nothing contained in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein Agreement shall give Purchaser, directly or indirectly, Buyer the right to control or direct the operations operation of Seller prior to Closingthe Business.

Appears in 1 contract

Samples: Asset and Membership Interest Purchase Agreement (Bob Evans Farms Inc)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except a) Except (i) as expressly provided by this Agreement, (ii) as set forth in Section 6.1(a) of the Company Disclosure Letter, (iii) as required by applicable Law, as set forth on Schedule 7.1 (iv) for the taking of reasonable steps in response to any extraordinary Event described in clause (vi) of the Seller Disclosure Schedule, as contemplated by definition of Material Adverse Effect in a manner consistent with other Persons operating in the industries or required to implement this Agreement or any Ancillary Agreementmarkets in which the business of the Purchased Companies operates and taking into account the Purchased Companies’ facts and circumstances, or as otherwise waived or consented to in writing by (v) with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), between the Execution Date and the earlier of (A) the termination of this Agreement in accordance with Article XI and (B) the Closing (the “Pre-Closing Period”), the Company shall, and Seller shalland the Company shall use their respective commercially reasonable efforts to cause each of the Purchased Companies to, (1) conduct the Purchased Companies’ business in the ordinary course and in compliance with all applicable Laws, Contractual obligations and the terms of this Agreement and (2) preserve substantially intact each Purchased Company’s present business organization, including using commercially reasonable efforts to (x) maintain all of such Purchased Company’s Assets in good operating condition and repair, ordinary wear and tear excepted, (y) keep available each Purchased Company’s current Service Providers, agents and advisors, and (z) maintain each Purchased Company’s business relationships and the goodwill of each Purchased Company’s customers, suppliers, strategic partners, vendors, distributors, resellers, landlords, creditors and others having material business relationships with any Purchased Company. (b) Without limiting the generality of Section 6.1(a), and except (1) as otherwise expressly provided in this Agreement, (2) as set forth in Section 6.1(b) of the Company Disclosure Letter, (3) as required by applicable Law, (4) for the taking of reasonable steps in response to any extraordinary Event described in clause (vi) of the definition of Material Adverse Effect in a manner consistent with other Persons operating in the industries or markets in which the business of the Purchased Companies operates and taking into account the Purchased Companies’ facts and circumstances, or (5) with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), during the Pre-Closing Period, the Company will not, and Seller and the Company will not permit any Purchased Company to: (ai) operate (A) amend, modify, or waive any provision of any Organizational Document of the Company, or (B) amend, modify, or waive in a manner material and carry adverse to Purchaser any provision of any Organizational Document of any Purchased Company (other than the Company); (ii) fail to maintain in effect on substantially similar terms, allow to lapse, or terminate (including by failure to pay any required premiums or other fees, costs, or expenses), or otherwise materially change or alter any Insurance Policy; (iii) declare, set aside, or pay any dividend or other distribution (whether in cash, stock, debt, or property or any combination thereof) in respect of any Securities of any Purchased Company (other than cash dividends from any wholly owned Subsidiary of the Company to the Company or to another wholly owned Subsidiary of the Company); (iv) create, incur, assume, or guarantee any Indebtedness, except (A) the incurrence of Indebtedness of the type described in clauses (h), (i), (j), or (k) of the definition thereof, (B) Indebtedness incurred under the Cerberus Credit Agreement in accordance with its terms for general corporate or working capital purposes, (C) letters of credit issued pursuant to the Cerberus Credit Agreement in accordance with its terms for general corporate or working capital purposes, (D) Indebtedness solely between or among the Purchased Companies or (E) with respect to any Indebtedness not in accordance with clauses (A) through (D), for any Indebtedness not to exceed $100,000 in the aggregate outstanding at any one time; (v) sell, pledge, dispose of, grant, transfer, lease, sublease, license, guarantee, mortgage, or create or permit to be created an Encumbrance (other than a Permitted Encumbrance) upon, or authorize the sale, pledge, disposition, grant, transfer, lease, sublease, license, guarantee, or mortgage of or creation of an Encumbrance (other than a Permitted Encumbrance) upon, any Assets, Securities, interests, or businesses of any Purchased Company (excluding the Owned IP, provision for which is made in Section 6.1(b)(xii)), other than any sale of inventory (including any finished goods or work in process) or obsolete equipment in the ordinary course of business; (vi) form any Subsidiaries or acquire (including by merger, consolidation, or acquisition of stock or assets) any interest in any Person or its business or any division thereof or any assets for consideration in excess of $250,000; (vii) issue, sell, transfer, pledge, charge, dispose of, split, combine, reclassify, redeem, repurchase, acquire (directly or indirectly), or Encumber (other than Encumbrances required by the terms of the Cerberus Credit Agreement as in effect on the Business Execution Date) any Capital Stock or other Securities of any Purchased Company or issue or grant any equity-based or equity-linked interests or awards with respect to any Purchased Company, or offer to do any of the foregoing; (viii) (A) change any Purchased Company’s financial accounting principles, methods or policies, except as required by a change in GAAP as advised by the Company’s independent public accountants or any applicable Law; (B) change any Purchased Company’s annual Tax accounting period; (C) make, change, or revoke any material Tax election or material method of Tax accounting, (D) file any amendment to any Tax Return; (E) settle or compromise any Tax Proceeding in respect of Taxes; (F) enter into any “closing agreement” within the meaning of Section 7121 of the Code (or any corresponding or similar provision of state, local or non-U.S. Law) or file any request for rulings or special Tax incentives with any Taxing Authority; (G) surrender any material refund of Taxes; or (H) consent to extension or waiver of the statute of limitations period applicable to any Tax Proceeding or Tax assessment; (ix) except as required (x) to comply with applicable Law, or (y) by the terms of any Employee Benefit Plan in effect on the Execution Date: (A) adopt, enter into, materially amend, or terminate any material Employee Benefit Plan or any plan, policy, program, agreement, or arrangement that would have been a material Employee Benefit Plan had it been in effect on the date hereof, (B) grant any bonus, commission, or other incentive compensation to any Service Provider, (C) increase the base salary or materially increase the benefits of any Service Provider, (D) accelerate the vesting or payment of any compensation or benefits to any Service Provider, whether or not under an Employee Benefit Plan, or (E) terminate (other than for cause), hire, or promote any Key Employee or Management Employee; (x) adopt, enter into, engage in negotiations for, terminate, or amend any collective bargaining agreement; (xi) (A) enter into any Contract that if in effect on the Execution Date would be a Material Contract pursuant to clause (iv), (xii) or (xxii) of Section 4.10(a), (B) enter into any Contract (to the extent not described in clause (A)) that, if in effect on the Execution Date would be a Material Contract entered into outside of the ordinary course of business consistent with past practice, (C) materially amend or modify or terminate (partially or completely) any Material Contract or any Contract that if in effect on the Execution Date would be a Material Contract, or (D) waive, release, or assign any material rights, claims, or benefits of a Purchased Company under any Material Contract or any Contract that if in effect on the Execution Date would be a Material Contract; (bxii) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customersgrant any rights to, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of make available any Purchased AssetsOwned IP, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology non-exclusive licenses to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit Owned IP granted to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices customers in the ordinary course of business; (kxiii) (A) fail to maintain, or allow to lapse, or abandon, including by failure to pay the required fees in any jurisdiction, any Owned Registered IP, other than in the ordinary course of business regarding Owned Registered IP that is not manufacturematerial to the conduct of the business of any Purchased Company, and (B) disclose to any other Person any trade secrets included in the Owned IP other than pursuant to an enforceable written agreement obligating such Person to maintain the confidentiality thereof; (xiv) commence any material Action, or enter into any purchase commitments settlement, or offer or propose to purchaseenter into any settlement, Inventory of any Action or claim (whether against a Purchased Company or any other Person), except for settlements that (A) are in amounts that do not exceed $100,000 individually or $250,000 in the aggregate, (B) do not involve any material non-monetary obligations, and (C) do not relate to this Agreement or the Transactions; (xv) (A) adopt any plan of merger, consolidation, reorganization, liquidation, or dissolution or (B) file a petition in bankruptcy under any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against any Purchased Company under any similar Law; (xvi) incur any capital expenditures or any obligations or Liabilities in respect thereof, except for capital expenditures (or any series of related capital expenditures) that do not exceed $100,000 individually or $250,000 in the aggregate to the extent not set forth in the Company’s capital expenditure budget set forth on Section 4.9(m) of the Company Disclosure Letter; (xvii) make any loans, advances, capital contributions, investments, or guarantees to, in, or for the benefit of any other Person, other than (A) travel and business advances to Service Providers made in the ordinary course of business or consistent with past practice or (B) loans, advances, capital contributions, investments, or guarantees solely between or among the Purchased Companies; (xviii) enter into any new line of business outside its and their existing businesses as of the Execution Date; (xix) enter into or modify any Affiliate Arrangement (other than offer letters, employment agreements, individual consulting agreements, individual contracting or service agreements, indemnification agreements, employment-related restrictive covenant agreements and employment-related Intellectual Property assignment agreements, in each case, entered into in the ordinary course of business; (l) use commercially reasonable efforts not fail or make any material payment or incur any liability pursuant to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract such Affiliate Arrangement (other than terminations or expirations at the end as required thereunder as of the stated term after the date hereof); (nxx) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except other than in the ordinary course of business consistent business, make any change to a Purchased Company’s policies or practices with past practice;respect to the payment of accounts payable or other current liabilities or the collection of accounts receivable or other current assets (including any acceleration or delay or deferral of the payment or collection thereof and offering any discount, accommodation or other concession in order to accelerate or induce the collection of, any receivables); or (pxxi) comply agree, in all material respects with all Laws applicable writing or otherwise, to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing actions.

Appears in 1 contract

Samples: Share Purchase Agreement (SMART Global Holdings, Inc.)

Conduct of the Business. From In order to preserve the value of the Included Assets, the Seller Group hereby covenants (i) that since the Balance Sheet Date it has conducted the Business in the ordinary and usual course and (ii) that from the date of hereof until the Closing, and except as contemplated by this Agreement (in which case the Seller Group shall promptly notify Nortel Networks of the action taken or to be taken) or expressly consented to by the Purchaser Group, the Seller Group undertakes to conduct the Business in the ordinary and usual course, and to use its reasonable best efforts to preserve intact the Business as conducted as of the Balance Sheet Date. Without limiting the generality of the foregoing, from the date hereof and until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallGroup will: (a) operate use reasonable best efforts to maintain the assets and carry properties of the Business in reasonably good working order and condition, ordinary wear and tear excepted; (b) use reasonable best efforts to maintain adequate insurance upon the properties and assets of the Business in such amounts and of such kinds as are comparable to those in effect on the Business date of this Agreement; (c) use reasonable best efforts to keep available (subject to dismissals and retirements in the ordinary course of business consistent with past practice), the services of the current officers and employees of the Business; (bd) use commercially reasonable best efforts to preserve intact the goodwill of the Business and the current advantageous relationships of Seller with its customers, vendors, suppliers, Business Employees and others Persons having business relations dealings with the Business; (ce) continue use reasonable best efforts to maintain its Books and Records in the Booksordinary course, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue , comply in all material respects with all Laws and contractual obligations applicable to make all necessary and material filings and payments with Governmental Authorities in connection with the Included Assets or the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s its material obligations under relating to the Assigned Contracts in accordance with the terms thereofBusiness; (f) refrain from makingnot, changing except as required by the terms of an employment contract entered into prior to the date of this Agreement except (in the case of non-executive officers and other employees only) in the ordinary course of business consistent with past practice, make any increase in the salary, wages or revoking other compensation of any Tax election; refrain from adopting officer or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver Employee of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax PeriodBusiness; (g) pay and discharge all material Liabilities related not adopt, enter into, terminate or materially amend or modify any Employee Plan relating to the Purchased Assets as they become due and payable in the ordinary course of businessBusiness, subject except to the Seller’s ability extent required by applicable law or expressly consented to pursue in good faith any bona fide disputesby the Purchaser Group; (h) not sell, lease, license, transfer, abandon, pledge, encumber (modify or change in any material respect any Contract relating to the Business other than Permitted Encumbrances)in the ordinary course of business consistent with past practice, fail or enter into any Contract relating to maintain or otherwise dispose of any Purchased Assets, the Business other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacturemake, or enter into any purchase commitments to purchasemake, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (capital expenditures other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pj) comply not sell, transfer, or otherwise dispose of or voluntarily encumber any fixed asset of the Business other than in all the ordinary course of business, consistent with past practice; (k) not sell, transfer, or otherwise dispose of or voluntarily encumber or agree to sell, transfer, or otherwise dispose of or voluntarily encumber, any prospects; (l) not sell, transfer, license or otherwise dispose of, any Intellectual Property; (m) not settle any lawsuit or claim if such settlements of lawsuits and claims impose any continuing liability or non-monetary obligation on the Business, the Contracts, the Assigned Intellectual Property or any of the Included Assets or if such settlement payments (net of any insurance recoveries) exceeds the reserves therefor set forth in the Balance Sheet unless such lawsuit or claim is not an Assumed Liability and other than the settlement of claims listed in Schedule 3.10; (n) not enter into or agree to enter into any employment agreement or collective bargaining agreement for the benefit of the employees of the Business or amend or modify or agree to amend or modify any existing employment or collective bargaining agreement for the benefit of the employees of the Business; (o) not make any material respects with all Laws applicable changes in the Seller Group's accounting methods, practices or procedures as they relate to the Business and(except as required by GAAP and approved in writing by the Seller Group's independent accountants); (p) not make any changes in the Seller Group's methods, promptly following receipt thereofpractices or procedures relating to accounts receivable, give accounts payable or credit policies of the Business (including without limitation extending its trade receivables or making any changes to the Purchaser copies of any notice received from any Governmental Authority its receivables write-off policies or other Person alleging any violation of any such Laws; andchanging its payables cycle policies); (q) not take make any material actions that changes in its marketing programs, sales promotion, pricing policies or product lines relating to the Business; (r) not enter into any other material transaction relating to the Business; (s) not submit any bid or proposal in respect of the provisions of goods or services by Telrad outside Israel (other than to the Purchaser Group) without the prior consent of Nortel; (t) not submit any bid or proposal in respect of the provisions of goods or services by Telrad within Israel (other than to the Purchaser Group) which could reasonably be expected deemed to delay be uneconomic for the Closing; providedBusiness as a separate business unit, howeverand (u) not enter into any agreement to do or engage in any of the foregoing. Notwithstanding the above, except as expressly the Seller Group shall be entitled (A) to offer incentives to employees and customers in order to accelerate the completion of supply and installation of products or services under the Contracts and (B) to negotiate with customers to split the projects under the Contracts in order to be able to complete discrete phases, provided in this Section 7.1each case that any such actions shall not result in (i) any material adverse on the relationship with the customer, nothing (ii) any material adverse impact on market price expectations, (iii) any material adverse change in this Section 7.1 shall prohibit Seller the pricing or its Affiliates from conducting their businessesother expectations of such customer, including (iv) a price discount or reduction exceeding 5% of the BusinessContract value (or, in their reasonable discretion provided it shall comply with the terms case the Contract is split into phases, of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, value of the right to control or direct the operations of Seller prior to Closingcompleted phase).

Appears in 1 contract

Samples: Asset Purchase Agreement (Koor Industries LTD)

Conduct of the Business. From the date of this Agreement until hereof through the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)Date, Seller shall: shall (unless Seller receives Purchaser's written consent) (a) operate conduct its business relating to the Purchased Assets and carry on Assumed Liabilities in the Business usual, regular and ordinary course consistent with past practice, (b) use its best efforts to maintain and preserve intact its relationships generally with its Bank Employees and Customers; provided, however, that any salary increases with respect to Bank Employees shall be in the ordinary course of business consistent with Seller's past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customerspractices, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue take no action which would adversely affect the ability of any party hereto to maintain the Booksobtain any Regulatory Approval or to perform its covenants and agreements under this Agreement, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and perform its material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerobligations, commitments, and use commercially reasonable efforts contracts relating to maintain in effect all material Permits required for the ongoing operation of the Business Branch except as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts modified in accordance with the terms thereof; of this Agreement, (e) not modify or terminate any material contract obligations relating to the Business, except in accordance with their contractual terms and in accordance with customary and past practice, (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or operate the Business in a Post-Closing Tax Period; material compliance with all current legal or statutory provisions, (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any liabilities of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, Branch except in the ordinary course of business consistent with past practice; , (ph) comply in all material respects not materially alter any of its policies or practices between the date of this Agreement and the Closing Date with all Laws applicable respect to the Business andrates, promptly following receipt thereoffees, give charges, or level of services available at or to Customers of the Branch except for such alterations as may be instituted generally for similar branch offices of Seller and in accordance with ordinary course of business consistent with past practice, and (i) not make any capital expenditures in excess of $10,000 with respect to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) Branch without Purchaser's written consent, which will not take any material actions that could reasonably be expected to delay the Closingunreasonably withheld; provided, howeverhowever that Seller shall be under no obligation to advertise or promote new or substantially new customer services in the principal market area of, except as expressly provided in this Section 7.1or for the benefit of, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business; provided, further, that Seller shall pay interest on the Deposit Liabilities at rates which are determined in their reasonable discretion provided it shall comply the ordinary course of business consistent with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingSeller's past practices.

Appears in 1 contract

Samples: Purchase and Assumption Agreement (Bar Harbor Bankshares)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, Except as set forth on Schedule 7.1 6.3, as otherwise required or contemplated hereby or with the written consent of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller the Sellers and the Transferred Subsidiaries shall: : (a) maintain and operate the tangible Purchased Assets in good operating condition and carry on repair, ordinary wear and tear excepted; (b) operate the Business in the ordinary course of business business, in substantially the same manner as conducted prior to the date hereof, including with respect to managing current assets and current liabilities in a manner consistent with past practice; ; (bc) use commercially reasonable efforts to preserve intact and maintain the goodwill of associated with the Business and its relationships with the relationships of Seller with its customers, vendors, suppliers, Business Transferred Employees and the material customers suppliers and distributors of, and others having doing business relations with with, the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for Permits; and (e) use commercially reasonable efforts to keep available the ongoing operation services of present officers and management employees (as a group) of the Business Business. Without limiting the generality of the foregoing, without the prior written consent of the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), and except as presently conductedset forth on Schedule 6.3, none of the Transferred Subsidiaries or, with respect to the Business, the Sellers will: (i) make any amendment or change in the articles of incorporation, bylaws or comparable organizational or governing documents of the Transferred Subsidiaries or effect any merger, consolidation, reorganization or recapitalization; (eii) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, licensetransfer or assign any material assets, transfertangible or intangible, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose outside of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory pursuant to a Contract in existence as of the date hereof (or entered into in compliance with this SECTION 6.3), or permit any material asset to become subject to a Lien, other than Permitted Liens; (iii) make any capital expenditures in excess of consumption consistent $5,000,000 in the aggregate in excess of amounts contemplated by the fiscal year 2007 capital expenditure budget for the Business (a true and correct copy of which has been made available to the Buyer); (iv) issue, sell or otherwise dispose of any of the capital stock or other equity interests of the Transferred Subsidiaries, or grant any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any of such capital stock or other equity interests; (v) declare, set aside, or pay any dividend or make any distribution with past practices respect to the capital stock or other equity interests of the Transferred Subsidiaries or redeem, purchase or otherwise acquire or reclassify, combine, split or subdivide any of such capital stock or other equity interests; (vi) waive any material rights other than in the ordinary course of business; (kA) not manufacture, or enter into any purchase commitments to purchase, Inventory except for normal periodic increases in amounts outside the ordinary course of business; business and consistent with past practices, increase the compensation or benefits payable or to become payable to any Transferred Employee or officer, director or employee of a Transferred Subsidiary; (lB) use commercially reasonable efforts not fail to keep current and other than as required by a plan or Contract in full force and effect or renew any existence as of the material Permits related date hereof (or entered into in compliance with this SECTION 6.3), grant or make, contingently or otherwise, any bonus, incentive compensation, service award or other benefit for or to the Business; credit of any Transferred Employee or officer, director or employee of a Transferred Subsidiary; or (mC) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation severance, termination pay or similar change of control agreement to which any of the Transferred Subsidiaries or, with respect to the Transferred Employees, the Sellers is a party, which provides for payments exceeding $250,000 per year per individual; (viii) change any accounting methods, practices, principles or policies, other than as required by applicable Law or GAAP or make any Tax election, settle or compromise any Tax liability, amend any material Tax Return or, with respect to any of the Transferred Subsidiaries, enter into any material agreement with respect to Taxes, including any such employee agreement to extend the statute of limitations with respect to material Taxes; (ix) revalue any of its respective assets, including writing off notes or accounts receivable or revaluing inventory, except for as required by GAAP; (x) make any retention bonus plan which may be mutually agreed between Seller and Purchaser), acquisitions or terminate the employment effect any disposition of any such employee without causePerson (other than an individual) or any division, except business or business unit of any Person or any equity security of or equity interest in any Person; (xi) settle or compromise any material claim or Action (whether or not commenced prior to the date of this Agreement); (xii) adopt, amend, terminate or enter into any Material Contract (other than the entry into customer contracts in the ordinary course of business consistent with past practice;business); or (pxiii) comply in all material respects with all Laws applicable commit or agree to any of the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Lawsforegoing; and (q) not take any material actions provided that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 SECTION 6.3 shall prohibit Seller (x) the Sellers from using cash and cash equivalents to pay Indebtedness or its Affiliates from conducting their businessesremoving any and all cash and cash equivalents from the Transferred Subsidiaries at any time, including and from time to time, prior to the BusinessClosing with prior notice to, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectlyand consent of, the right Buyer, which consent will not be unreasonably withheld, conditioned or delayed, except that (i) the Buyer may not withhold, condition or delay such consent unless there would be an adverse Tax consequence to control the Buyer or direct the respective Transferred Subsidiary caused by such payment or removal or such payment or removal would violate Law and (ii) for this purpose, the use, for United States federal income Tax purposes, of foreign Tax credits attributable to the operations of Seller prior the Transferred Subsidiaries during any Pre-Closing Tax Periods shall not be deemed to Closing.impose any adverse Tax consequence on the Buyer or the Transferred Subsidiaries, (y) the Sellers from terminating or permitting to expire the leases pursuant to which the Xxxxxxx New Lease Facilities are being leased as of the date hereof or (z) the assignment of any Intellectual Property and Software contemplated by the form attached hereto as Exhibit O.

Appears in 1 contract

Samples: Asset Purchase Agreement (General Motors Corp)

Conduct of the Business. From (a) Except as otherwise contemplated by this Agreement, during the period from the date of this Agreement until to the earlier of the Closing Date and the Termination Date, Desc Automotriz and Dxxx shall cause Sxxxxx to, Sxxxxx shall, and Sxxxxx shall cause each of the JV Subsidiaries to, do the following: (or until i) conduct its business in the earlier termination Ordinary Course of this Agreement in accordance with Section 11.1), Business (except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to mutually agreed in writing by Purchaser writing); (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on the Business in the ordinary course of business consistent with past practice; (bii) use commercially reasonable best efforts to maintain the services of all employees and officers (other than those employees to be terminated pursuant to Section 7.17(e)); (iii) use reasonable best efforts to preserve intact the organization and goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; or their business; (civ) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; respects its current relationships with customers, suppliers, distributors and others having business dealings with it; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (gv) pay their Indebtedness and discharge all material Liabilities related to trade and other accounts payable punctually when and as the Purchased Assets as they same will become due and payable and perform and observe, in all material respects, their duties and obligations under all material Contracts; and (vi) take any action that is required so that all representations or warranties of the ordinary course Desc Parties and of businessthe Dxxx Parties are true and correct in all material respects as of the Closing. (b) Without limiting the generality or effect of Section 7.1(a), subject unless otherwise provided under this Agreement and/or the Ancillary Agreements, prior to the Seller’s ability Closing, Sxxxxx will not, and will not permit any of the JV Subsidiaries to pursue take, without the prior written consent of Desc Automotriz (which such consent shall be given by Mxxxxx Áxxxx Xxxx or such other person as Desc Automotriz may designate in good faith any bona fide disputeswriting) and Dxxx (which such consent shall be given by Rxxxxxx Xxxxxxx or such other person as Dxxx xxx designate in writing), to: (i) amend or modify their governing or organizational documents, from those existing on the date of this Agreement; (hii) not change any salaries or other compensation of, or pay any bonuses to, any director, manager, officer or employee of Sxxxxx or any JV Subsidiary, as applicable, or enter into any employment, severance or similar agreement with any director, manager, officer or employee of Sxxxxx or any JV Subsidiary; provided, however, that the compensation of employees of Sxxxxx or any of JV Subsidiary receiving annual compensation of less than US$50,000 may be changed in the Ordinary Course of Business; (iii) adopt, amend or increase any benefits under any profit sharing, bonus, deferred compensation, savings, insurance, pension, retirement or other employee benefit plan or policy; (iv) procure, enter into, amend or terminate (A) with respect to any of the Desc Targets, any Contract (including sales agreements and purchase orders) to which it is a party that involves future payments to, by or on its behalf in excess of US$2,500,000 and (B) with respect to any of the Dxxx Targets, any Contract (including sales agreements and purchase orders) to which it is a party that involves future payments to, by or on its behalf in excess of US$100,000; (v) incur, assume or guarantee any Indebtedness, other than, in the case of the Desc Targets, guarantees to suppliers of any of the Desc Targets that are given by another Desc Target; (vi) except for the sale of the Tlaxcala Assets and the Autoprecisa Land, enter into any transaction or commitment relating to the Assets or the business of Sxxxxx or such JV Subsidiary that, individually or in the aggregate, could be material to the business of Sxxxxx or such JV Subsidiary, or cancel or waive any claim or right of substantial value that, individually or in the aggregate, could be material to the business of Sxxxxx or such JV Subsidiary or amend any term of any outstanding securities of Sxxxxx or any JV Subsidiary; (vii) except as expressly contemplated by this Agreement, set aside or pay any dividend or distribution with respect to any securities of Sxxxxx or any JV Subsidiary, repurchase, redeem or otherwise acquire directly or indirectly, any outstanding securities of Sxxxxx or any JV Subsidiary or make any payment to or for the benefit of Dxxx, Desc Automotriz or any of their Affiliates; (viii) make any change in financial or Tax accounting methods or practices, except as required by Applicable Laws (in which case Sxxxxx will promptly notify Desc Automotriz and Dxxx of such change); (ix) except as required by this Agreement, issue or sell any securities of Sxxxxx or any JV Subsidiary, as applicable, or make any other changes in Sxxxxx’x or any of the JV Subsidiaries’ capital structures; (x) except as expressly permitted under this Agreement (including the sale of the Tlaxcala Assets and of the Autoprecisa Land), sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain lease or otherwise dispose of any Purchased Assetsmaterial Asset or otherwise sell, lease or dispose of any Asset other than in the Ordinary Course of Business; (xi) except as expressly permitted under this Agreement (A) write-off as uncollectible any notes or accounts receivable except write-offs in the Ordinary Course of Business charged to reserves, none of which is, individually or in the aggregate, material, (B) write-off, write-up or write-down any other material Asset of Sxxxxx or any JV Subsidiary or (C) alter the customary time periods for collection of accounts receivable or payments of accounts payable; (xii) grant any Encumbrance other than a Permitted Encumbrance; (xiii) except as expressly contemplated by this Agreement, pay, discharge, settle or satisfy any claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise) in excess of US$100,000, other than the sale payment, discharge or satisfaction of Inventory and other dispositions of assets liabilities in the ordinary course Ordinary Course of business consistent with past practiceBusiness; (ixiv) merge or consolidate with any Person; (xv) enter into any compromise or settlement of, or take any other action with respect to, any litigation, action, suit, claim, proceeding or investigation unless required by law or if failure to act would have a material adverse effect with respect to the business of Sxxxxx or any JV Subsidiary; (xvi) except as expressly contemplated by this Agreement, make any loan, advance or capital contributions to or investment in any Person; (xvii) terminate or close any material facility, business or operation of Sxxxxx or any JV Subsidiary; (xviii) cause any damage, destruction or other casualty loss (whether or not covered by insurance) affecting the business or Assets of Sxxxxx or any JV Subsidiary, which, individually or in the aggregate, has had or would reasonably be expected to have, a material adverse effect with respect to the business of Sxxxxx or any JV Subsidiary; (ixix) exclusively licensegrant or pay any severance or termination pay to any former officer, director, manager or employee of the Company or any of its Subsidiaries, except as required under existing employment agreements and as set forth in Schedule 7.1(b)(xix); (xx) cause or take any other action that could cause an event, occurrence, development or state of circumstances or facts which individually or in the aggregate, would reasonably be expected to have a material adverse effect with respect to the business, financial conditions or results of operations of Sxxxxx or any JV Subsidiary; (xxi) spend or commit to spend on or prior to June 30, 2006 an amount of capital expenditures that is greater than that set forth in Schedule 7.1(b)(xxi); (xxii) license outside of the Ordinary Course of Business, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller)intangible Assets; and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology;or (jxxiii) not grant any allowances agree or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments otherwise commit to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew do any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Master Share Purchase Agreement (Dana Corp)

Conduct of the Business. From and after the date of hereof and prior to the Effective Time or the date, if any, on which this Agreement until the Closing is earlier terminated pursuant to Section 9.1 and except (or until the earlier termination of this Agreement in accordance with Section 11.1), except x) as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to may be agreed in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned withheld or delayed), Seller shallor (y) as may be expressly permitted pursuant to this Agreement, Company: (a) operate shall, and carry shall cause each Company Subsidiary to, conduct its respective business in the ordinary course consistent with past practices; (b) shall use commercially reasonable efforts, and shall cause each Company Subsidiary to use commercially reasonable efforts, to preserve intact its business organization and goodwill, keep available the services of its current officers and other key employees and preserve its relationships with those Persons having business dealings with Company and Company Subsidiaries; (c) shall promptly notify Purchaser in writing of any material change in its condition (financial or otherwise) or business or any termination, cancellation, repudiation or breach of any Company Material Contract (or communications indicating that the same are reasonably likely) or any litigation or governmental complaints, investigations or hearings (or communications indicating that the same are reasonably likely) or the breach of any representation or warranty contained herein; (d) shall, and shall cause each Company Subsidiary to, use commercially reasonable efforts to maintain its insurance policies that are in effect as of the date of this Agreement; (e) shall provide Purchaser with interim monthly financial statements and any other management reports as and when they are available; (f) except as set forth on Schedule 6.1, shall not, and shall not permit any Company Subsidiary to, authorize, declare or pay any dividends on or make any distribution with respect to its outstanding shares of capital stock or other equity interests; provided, however, that, to the extent permitted by the DGCL, Company may authorize, declare and pay dividends on or make any distribution to its outstanding shares of capital stock after giving effect to the exercise of all Vested Options exercised pursuant to Section 3.5(a); (g) shall not, and shall not permit any Company Subsidiary to, split, combine or reclassify any of its capital stock or other equity interests or issue or authorize or propose the issuance of any other securities or other equity interests in respect of, in lieu of or in substitution for, shares of its capital stock or other equity interests; (h) except as set forth on Schedule 6.1, shall not, and shall not permit any Company Subsidiary to, increase the compensation of any employee, enter into or amend any employment, severance or similar agreements or arrangements with any of their respective present or former directors or officers, or enter into, adopt or amend any other Company Employee Benefit Plan, except as required by law; (i) shall not, and shall not permit any Company Subsidiary to, terminate any executive officer without cause or knowingly permit circumstances to exist that would give any executive officer a right to terminate employment, if the termination would entitle such executive officer to receive enhanced separation payments upon consummation of the Merger; (j) shall not, and shall not permit any Company Subsidiary to, authorize, propose or announce an intention to authorize or propose, or enter into an agreement with respect to, any merger, consolidation or business combination (other than the Merger) and shall not purchase the assets or equity or other securities of any business; (k) shall not, and shall not permit any Company Subsidiary to, make or commit to make any capital expenditures in excess of $5,000. (l) shall not, and shall not permit any Company Subsidiary to, propose or adopt any amendment to its Certificate of Incorporation or By-laws; (m) except as set forth on Schedule 6.1, shall not, and shall not permit any Company Subsidiary to, issue or authorize the issuance of, or agree to issue or sell any shares of its capital stock of any class, or any other equity interests (in each case, whether through the issuance or granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise), except upon the exercise of Company Options; (n) except as set forth on Schedule 6.1, shall not, and shall not permit any Company Subsidiary to, grant, confer or award any options, warrants, conversion rights or other rights, not existing on the Business date hereof, to acquire any shares of any Company Subsidiary's capital stock or any other equity interests; (o) except as set forth on Schedule 6.1, shall not, and shall not permit any Company Subsidiary to, purchase, redeem or otherwise acquire any shares of its capital stock, or any other equity interests or any rights, warrants or options to acquire any such shares or interests; (p) shall not, and shall not permit any Company Subsidiary to, incur, assume any indebtedness or any other material liabilities; (q) shall not, and shall not permit any Company Subsidiary to, (i) make any loans, advances or capital contributions to, or investments in, any other Person, or (ii) pay, discharge or satisfy any claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), other than discharges or satisfactions committed to in the ordinary course of business consistent with past practice; (br) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannershall not, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingshall not permit any Company Subsidiary to, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, mortgage or otherwise encumber (other than Permitted Encumbrances), fail or subject to maintain any Lien or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practiceits material properties or material assets; (is) shall not, and shall not (i) exclusively licensepermit any Company Subsidiary to, assign enter into any agreement or transfer any Purchased Business Intellectual Property arrangement that limits or otherwise restricts Company or any Purchased Business Technology to of its Subsidiaries, from engaging or competing in any Person line of business in any geographic area; (t) shall not, and shall not permit any Company Subsidiary to, settle or compromise any claim, action or proceeding (including any current claim, action or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (iiproceeding relating to Taxes) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technologyinvolving money damages; (ju) shall not, and shall not grant permit any allowances Company Subsidiary to, (A) make or discounts on Products outside the ordinary course of business change any tax election or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business(B) change its fiscal year; (kv) except as required by a governmental authority, shall not manufacture, change its methods of accounting (including making any write-off or enter into reduction in the carrying value of any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereofassets); (nw) shall not, and shall not waivepermit any Company Subsidiary to, releaseterminate, assign amend or otherwise modify in any material benefit or claim under respect any Assigned Company Material Contract; (ox) shall not grant credit to any Business Employee any increase client on terms materially more favorable than those which have been extended to such client in compensation the past or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate materially change the employment terms of any such employee without cause, except in the ordinary course of business consistent with past practicecredit heretofore extended; (py) comply shall work in good faith with Purchaser to secure signed written contracts with respect to all material respects with all Laws applicable services to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority be performed by Company or other Person alleging any violation of any such LawsCompany Subsidiaries; and (qz) shall not, and shall not permit any Company Subsidiary to, agree, in writing or otherwise, to take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly foregoing actions or indirectly, take any action which would (A) make any representation or warranty in Article IV untrue or incorrect or (B) result in any of the right conditions to control or direct the operations of Seller prior to ClosingMerger set forth in Article VII not being satisfied.

Appears in 1 contract

Samples: Merger Agreement (Inforte Corp)

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required by applicable Law(v) for the Pre-Closing Transactions, (w) as set forth on Schedule 7.1 in Section 5.01 of the Seller Disclosure Schedule, (x) as contemplated by or required to implement this Agreement or any Ancillary the other Transaction Documents, (y) as required by Applicable Law or (z) with Buyer’s written consent, Seller shall (i) conduct the Purchased Subsidiaries’ business in the ordinary course consistent with past practice in all material respects, and (ii) use its reasonable best efforts to (A) preserve intact the Purchased Subsidiaries’ business, operations, organization, goodwill and reputation, (B) maintain the good will of the Purchased Subsidiaries’ customers, suppliers, lenders and other Persons to whom the Purchased Subsidiaries sells goods or provides services, (C) keep available the services of key employees of the Business, and (D) maintain substantially the same levels of coverage of insurance as provided on the date hereof. Without limiting the generality of the foregoing, from the date hereof until the Closing Date, except (v) for the Pre-Closing Transactions, (w) as set forth in Section 5.01 of the Disclosure Schedule, (x) as contemplated by this Agreement, (y) as required by Applicable Law or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)z) with Buyer’s written consent, Seller shallshall cause the Purchased Subsidiaries not to: (a) amend in any material respect the articles of incorporation, bylaws or other similar organizational documents of any Purchased Subsidiary; (b) authorize, issue, sell or otherwise dispose of any equity securities of the Purchased Subsidiaries, or split, combine or reclassify any of the equity securities of the Purchased Subsidiaries or redeem, purchase, repurchase, retire or otherwise acquire any of its outstanding equity securities, or grant any options, warrants, or rights with respect to any equity securities in the Purchased Subsidiaries’ capital or bonds, debentures, notes or other corporate security other than with respect to transactions between the Purchased Subsidiaries; (c) cease to operate and the Purchased Subsidiaries’ properties (either permanently or temporarily other than scheduled shut downs for routine maintenance) or cease to carry on a material part of the Business as operated or carried on immediately before the date hereof; (d) effect any dissolution, winding-up, liquidation or termination of the Purchased Subsidiaries; (e) acquire a material amount of assets from any other Person except (i) pursuant to existing contracts or commitments or (ii) otherwise in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingacquire any material business or Person, changing by merger, amalgamation or revoking consolidation, purchase or sale of substantial assets or equity interests, or by any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodother manner; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain license or otherwise dispose of any material assets of the Purchased AssetsSubsidiaries except (i) pursuant to existing contracts or commitments, (ii) cash dividends or other than the sale of Inventory and other dispositions of assets cash distributions to Seller or its Affiliates or (iii) otherwise in the ordinary course of business consistent with past practice; (ih) not (i) exclusively license, assign or transfer to any Purchased Business person any rights to the Registered Intellectual Property Rights or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business other material Intellectual Property Rights owned by the Purchased Subsidiaries, except in connection with sales of the Purchased Subsidiaries’ products or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices services in the ordinary course of business; (i) create or otherwise incur any Lien on the material assets of the Purchased Subsidiaries, other than Permitted Liens; (j) incur any capital expenditures, except for (i) those contemplated by the capital expenditure budget attached as Section 5.05 of the Disclosure Schedule, and (ii) unbudgeted capital expenditures not to exceed $500,000 individually or $1,000,000 in the aggregate; (k) not manufactureissue, create, assume, guarantee or incur any additional indebtedness for borrowed money in an aggregate principal amount exceeding $500,000 individually or $1,000,000 in the aggregate (net of any amounts of indebtedness discharged during such period), other than (x) in the ordinary course of business, (y) that will be settled or repaid in full prior at or to Closing or (z) solely between or among Purchased Subsidiaries; (l) enter into any purchase commitments arrangement pursuant to purchasewhich any Purchased Subsidiary shall assume, Inventory guarantee or otherwise become liable with respect to the liabilities (other than indebtedness for borrowed money, which is the subject of Section 5.01(k)) of any Person (other than any Purchased Subsidiaries), other than (x) in the ordinary course of business or (y) that will be settled or repaid in full prior at or to Closing; (m) other than in connection with actions permitted by Section 5.01(j), make any material loans, advances or capital contributions to, or investments in, any other Person, other than (i) in the ordinary course of business consistent with past practice, (ii) to any other Purchased Subsidiary or (iii) amounts that will be repaid in full at or prior to the Closing; (n) waive or cancel any material claim, account receivable, trade account or right outside the ordinary course of business; (lo) use commercially reasonable efforts not fail to keep current and except as required by Applicable Law, amend or modify in full force and effect any material respect or renew terminate any of the material Permits related to the BusinessMaterial Contract or Real Property Lease; (mp) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employmentcontract that would have been a Material Contract had it been entered into prior to the date hereof except, deferred compensation or similar agreement solely with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser)respect to Material Contracts relating to the purchase of raw materials that have a term of less than one year, or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pq) comply settle or offer to settle, any material Action involving the Purchased Subsidiaries, except where the amount paid in all settlement or compromise does not exceed (i) the amount of any reserves reflected on the Balance Sheet in respect of such Action or (ii) the aggregate coverage provided for under any insurance policy in respect of such Action, in either case, so long as such settlement does not impose any non-monetary terms and conditions on the Purchased Subsidiaries after the Closing; (r) make any material respects change in any method of financial accounting, except for any such change required by reason of a concurrent change in GAAP or other Applicable Law; (s) materially increase the compensation or benefits of the Business Employees other than in the ordinary course of business consistent with all Laws applicable past practice or as required by Applicable Law or the terms of any Benefit Plan or collective bargaining or other labor agreement; (t) enter into, adopt, amend, or terminate any employment agreement, or terminate or hire any Key Employee, or other Business Employee above the grade of director or engage in a reduction in force with respect to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andEmployees; (qu) enter into, adopt, amend or terminate any Purchased Subsidiary Benefit Plan or any Benefit Plan, except in each case as would not take any material actions that could reasonably be expected to delay result in a liability that is material to the ClosingPurchased Subsidiaries taken as a whole; (v) enter into, materially amend, or terminate any collective bargaining agreement, collective labor agreement or similar agreements with respect to Business Employees; providedor (w) agree or commit to do, howeverwhether or not in writing, except as expressly provided in this Section 7.1any of the foregoing. For the avoidance of doubt, nothing in this Section 7.1 5.01 shall prohibit restrict Seller or any of its Subsidiaries, in any respect, from taking any action to (i) cause each Purchased Subsidiary to dividend, distribute or otherwise pay to Seller or any of its Affiliates any or all of the cash and cash equivalents of such Purchased Subsidiary; (ii) remove, or cause any Subsidiary to remove and pay to Seller or any of its Affiliates any cash and cash equivalents held in any bank account of any Purchased Subsidiary, (iii) settle intercompany balances between any Purchased Subsidiary, on the one hand, and Seller or any Retained Subsidiary, on the other hand, and make capital increases or decreases in connection therewith, (iv) in connection with any of the foregoing clauses (i), (ii) or (iii), cause any Purchased Subsidiary to incur indebtedness for borrowed money from conducting their businesses, including the Business, in their reasonable discretion provided it shall another Purchased Subsidiary and (v) otherwise comply with or give effect to the terms provisions of the this Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 1 contract

Samples: Stock Purchase Agreement (TreeHouse Foods, Inc.)

Conduct of the Business. (a) From the date of this Agreement hereof until the Closing Date, the Company shall, and shall cause each of its Subsidiaries to: (i) conduct its business and the businesses of its Subsidiaries in the ordinary course of business; (ii) use its commercially reasonable efforts to preserve its relationships with its customers, suppliers and others having material business dealings with it such that its business will not be impaired; (iii) maintain its properties, machinery and equipment in the ordinary course of business and use its commercially reasonable efforts to maintain its properties, machinery and equipment in good operating condition and repair; and (iv) use its commercially reasonable efforts to continue all existing Insurance Policies (or comparable insurance) in full force and effect; except, in each of the foregoing cases, (i) if the Purchaser shall have consented in writing (which consent will not be unreasonably withheld, conditioned or delayed) or (ii) as otherwise expressly contemplated by this Agreement; provided that, the foregoing notwithstanding, (x) the Company and its Subsidiaries may use all available cash to repay any Indebtedness or to make cash distributions prior to the Closing and (y) no action by the Company or its Subsidiaries with respect to matters specifically addressed by any provision of Section 6.01(b) shall be deemed a breach of this Section 6.01(a), unless such action would constitute a breach of one or more of such other provisions of Section 6.01(b) and (z) the Company and its Subsidiaries’ failure to take any action prohibited by Section 6.01(b) shall not constitute a breach of this Section 6.01(a). (b) From the date hereof until the earlier termination of this Agreement in accordance with Section 11.1)Closing Date, except as otherwise expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by the Purchaser (which consent shall will not be unreasonably withheld, conditioned or delayed), Seller shallthe Company shall not and shall cause each of its Subsidiaries not to: (ai) operate materially change its accounting methodologies, practices or principles, other than as required by GAAP; (ii) establish any new or amend in any material respect any existing cash management policies, including delaying or postponing the payment of any accounts payable or accelerating the collection of any accounts receivable, other than in the ordinary course of business; (iii) issue, sell, deliver pledge, encumber, transfer or otherwise dispose of any units or shares of its or its Subsidiaries’ equity securities or any securities convertible into, or options with respect to, or warrants to purchase or rights to subscribe for, or any other right of any kind to acquire, any units or shares of its or its Subsidiaries’ equity securities or any bonds (other than performance or similar bonds) or debt securities; (iv) incur, assume or refinance any Indebtedness, other than indebtedness for borrowed money incurred in the ordinary course that will be prepayable at the Closing and carry included in the Indebtedness Amount pursuant to credit facilities in an aggregate amount not to exceed $2,000,000 so long as the Company delivers written notice of such incurrence at least two (2) Business Days prior to such incurrence; (v) mortgage or pledge or place any Lien on any substantial portion of its assets, except Permitted Liens; (vi) effect any recapitalization, reclassification, equity dividend, equity split or like change in its capitalization; (vii) be party to any merger, acquisition, consolidation, liquidation, dissolution or similar transaction, or purchase a substantial equity interest in or substantial portion of the Business assets of, any business or Person; (viii) amend its or its Subsidiaries’ certificate or articles of formation or incorporation, bylaws or other similar organizational documents; (ix) make any redemption or purchase of any units or shares of its or its Subsidiaries’ equity securities; (x) sell, assign, dispose of or transfer any of its tangible assets, except inventory in the ordinary course of business or pursuant to any agreement set forth on Schedule 4.09, or voluntarily place any Lien on its assets other than Permitted Liens; (xi) (i) sell or assign any Intellectual Property, (ii) license or sublicense any Intellectual Property other than in the ordinary course of business in connection with the sale, rental or lease of the Company’s products, or (iii) abandon or permit the lapse of any Intellectual Property other than, in the case of this clause (iii), in the ordinary course of business, including in connection with the ordinary course prosecution of patent applications and trademark applications consistent with past practice; (bxii) use commercially reasonable efforts to preserve intact the goodwill make any investment in excess of $250,000 in, or any loan in excess of $250,000 to, any other Person, except investments in Subsidiaries of the Business and Company in the relationships ordinary course of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Businessor pursuant to any agreement set forth on Schedule 4.09; (cxiii) continue amend or modify, other than in the ordinary course of business and provided that such amendment or modification calls for future payments or receipts of less than $250,000, any agreement set forth or required to maintain be set forth on Schedule 4.09 or enter into, other than in the Booksordinary course of business, Records and Files any agreement which, if in effect as of Seller and its Affiliates exclusively or primarily related the date hereof, would be required to be listed in Schedule 4.09; (xiv) other than as required under any Employee Benefit Plan as in effect prior to the Business on a basis date hereof or to comply with applicable Law, (A) increase the compensation or benefits payable to any of the Company’s current or former employees, officers, directors, contractors or consultants, except for increases in base salary or base wage rate for employees having total annual compensation less than or equal to $150,000 in the ordinary course of business, consistent with past practice; and , which increases shall not exceed 3% in any individual case (dB) continue to make all necessary and material filings and payments establish, adopt, enter into, amend or terminate any Employee Benefit Plan or any bonus, severance, retention, termination, or pension plan, program or arrangement made to, for or with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation any of the Business as presently conductedCompany’s current or former directors, officers, employees, contractors or consultants, (C) pay or award, or commit to pay or award, any bonuses, equity compensation or other incentive compensation, (D) accelerate the time of payment, funding or vesting of any compensation or other benefits under any Employee Benefit Plan, (E) hire any employee, contractor or consultant having total annual cash compensation in excess of $150,000, (F) terminate the employment of any employee, contractor or consultant having total annual compensation in excess of $150,000, other than for cause, (G) fund or make any contribution to any Employee Benefit Plan or any related trust or other funding vehicle, other than regularly scheduled contributions or payments to or in respect of Employee Benefit Plans, or (H) adopt, enter into or amend any collective bargaining agreement or other Contract relating to union or organized employees; (exv) perform all make or authorize any capital expenditures in excess of Seller$500,000 individually or $1,000,000 in the aggregate or commitments therefor, except for such capital expenditures or commitments therefor that are reflected in the Company’s material obligations under or its Subsidiaries’ current budget delivered to Purchaser prior to the Assigned Contracts in accordance with the terms thereofdate hereof; (fxvi) refrain from makingmake any loan in excess of $100,000 to, changing or revoking enter into any other material transaction with, any of its directors, officers, or employees except pursuant to any agreement set forth on Schedule 4.17; (xvii) settle, compromise or otherwise resolve any pending or Threatened claim, suit, action, charge, citation, proceeding, investigation or arbitration for an amount in excess of $100,000 or which would impose any obligation or liabilities on the Company or any Subsidiary following the Closing; (xviii) settle or compromise any material Tax election; refrain from adopting or changing liability, amend any accounting method with respect to Taxes; refrain from filing any amended material Tax Return; refrain from entering into , surrender any closing agreementright to claim a refund of Taxes, settling or compromising any Tax claim or assessment; and refrain from consenting consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment (other than any extension resulting from filing Tax Returns by the extended due date), fail to pay any material Tax as it comes due consistent with past practice or make any material election with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period;or (gxix) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments agreement or otherwise commit, whether in writing or otherwise, to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew take any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end types of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided described in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing6.01(b).

Appears in 1 contract

Samples: Stock Purchase Agreement (Mallinckrodt PLC)

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as (x) otherwise expressly permitted or required by applicable Lawthis Agreement or the Ancillary Agreements (including actions required to be taken in order to consummate the Pre-Closing Restructuring in the manner provided in Exhibit A hereto and, as applicable, the exercise or failure to exercise the European Sale Option), (y) set forth on Schedule 7.1 in Section 4.1 of the Seller Disclosure Schedule, as contemplated by Letter or required to implement this Agreement or any Ancillary Agreement, or as (z) otherwise waived or consented to in writing by Purchaser Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), (i) Sellers shall, and shall cause their respective Subsidiaries (including the Companies and the Transferred Subsidiaries) to (A) conduct the Business in the ordinary course consistent in all material respects with past practice, (B) continue to make capital expenditures in the ordinary course of business substantially consistent with past practice (and, with respect to 2015, in an aggregate amount not less than 85% of the budgeted amount therefor under the capital expenditure budget for the Business set forth in Section 4.1(q) of the Seller shallDisclosure Letter (the “2015 CapEx Budget”) (prorated, as applicable, through the Closing Date in the event that the Closing occurs in 2015)), (C) use reasonable best efforts to preserve the business operations, assets, organization and goodwill of the Business, relationships with employees, customers, suppliers and other Persons having material business relationships with the Business, books and records of the Business, Permits and the Policies and insurance coverage for the Business, (D) notwithstanding the fact that the Facility Consolidation is set forth on Section 4.1 of the Seller Disclosure Letter, keep Buyer reasonably apprised on a reasonably current basis in respect of the Facility Consolidation and matters related thereto and consider in good faith requests made by Buyer in respect of the Facility Consolidation (including in respect of (x) mitigation of impacts on business relations resulting therefrom (including in respect of employees, customers and suppliers) and (y) creation and maintenance of sufficient inventory at the Thousand Oaks Facility), and (E) keep Buyer reasonably apprised on a reasonably current basis in respect of any Litigation initiated or proposed to be initiated by any of the Companies or any of the Transferred Subsidiaries (other than non-material Litigation in the ordinary course of business and Litigation in which claimed damages are less than $50,000), and (ii) in accordance with other affirmative requirements set forth herein and without limiting the generality of the foregoing, Sellers shall not, and shall not permit any of their respective Subsidiaries (including the Companies or any of the Transferred Subsidiaries) to take any of the following actions with respect to the Business, or any of the Companies or the Transferred Subsidiaries, or any of their respective assets, properties employees or liabilities, as applicable: (a) operate and carry (i) amend (including through merger) the Organizational Documents of any of the Companies or the Transferred Subsidiaries, (ii) take or authorize any action to wind up the affairs, liquidate or dissolve a Company or Transferred Subsidiary, or (iii) form (or participate in the formation of) or invest or commit to invest in any legal entity or other Person (other than investment or commitment to invest in a Company or a current wholly-owned Subsidiary of a Company); (b) (i) amend any Company Benefit Plan or any Seller Benefit Plan or establish any new arrangement that would (if it were in effect on the date hereof) constitute a Company Benefit Plan or Seller Benefit Plan, (ii) grant to any Transferred Employee or Transferred Seller Employee any right to or any increase in change in control, severance or termination pay, or (iii) increase or take any action to increase the rate of compensation to any Transferred Employee or Transferred Seller Employee, or increase or take any action to increase benefits under any profit-sharing, bonus, incentive, deferred compensation, insurance, pension, retirement, medical, hospital, disability, welfare or other employee benefit plan available to any Transferred Employee or Transferred Seller Employee, in the case of each of clause (i), (ii) and (iii) other than (X) Ordinary Course Annual Compensation Increases, (Y) to the extent required under any existing Company Benefit Plan, Seller Benefit Plan or collective agreement in effect on the date hereof or (Z) bonus compensation, severance or other amounts that are paid in full prior to Closing or with respect to which Buyer, the Companies and the Transferred Subsidiaries shall have no Liability; provided, however, that this subsection (b) shall not prohibit any member of the Seller Group from amending in any material respect any Seller Benefit Plan that is not listed on Section 2.16(a)(ii) of the Seller Disclosure Letter or adopting any new arrangement for which the Companies and the Transferred Subsidiaries will not have any Liability after the Closing, in each case in the ordinary course of business, so long as such action is not targeted at any Transferred Employee or Transferred Seller Employee (or group thereof) and applies uniformly to employees of the Companies and the Transferred Subsidiaries and other similarly-situated employees of the Seller Group (but, unless otherwise required by applicable Law or any applicable Collective Agreement, such amendments or actions shall not be required to be taken into account in determining whether Buyer has satisfied its obligations under Section 4.4(a)(i)); (c) issue, sell, pledge, transfer, purchase, redeem or grant options, warrants or rights to purchase or subscribe to, enter into any arrangement or Contract with respect to the issuance, sale, pledge, transfer of, or redemption or repurchase of, any Company Securities or any Transferred Subsidiary Securities or make any changes (by combination, reorganization or otherwise) in the capital structure of any of the Companies or the Transferred Subsidiaries; (d) pay, declare or make any dividend or other distribution other than dividends or distributions payable solely in cash or Cash Equivalents prior to the Effective Time (so long as, after payment of such dividend or distribution, the amount of cash and Cash Equivalents in the Company Group at Closing remains reasonably sufficient to operate the Business in the ordinary course without undue disruption for the period immediately following the Closing); (e) sell, assign, transfer, pledge or encumber, or grant, create or incur any Lien (other than a Permitted Lien and Liens securing existing Indebtedness or Indebtedness incurred as permitted by this Section 4.1) on, any of its Assets (other than Intellectual Property, which shall be governed under Section 4.1(f)), interests or businesses, including the equity interests of the Companies and the Transferred Subsidiaries, other than (i) dispositions of Assets for consideration of less than $500,000 in the aggregate, and (ii) sales of inventory and other tangible personal property in the ordinary course of business and sales of worn-out or obsolete tangible personal property; (f) sell, assign, transfer, pledge (other than granting, creating or incurring any Permitted Lien or Lien securing existing Indebtedness or Indebtedness incurred as permitted by this Section 4.1), lease, license or sublicense, or otherwise dispose of to any Person any material Business Intellectual Property, other than non-exclusive licenses granted in the ordinary course of business; (g) make any material change to its accounting policies or practices, except as required by applicable accounting standards or applicable Law; (h) make or adopt any change in any method of Tax accounting or in any Income Tax or other material Tax election that would bind a Company or Transferred Subsidiary after Closing, settle or compromise any Income Tax or other material Tax liability or claim for Income Tax or other material Tax refund, file any amended Tax Return, prepare or file any Tax Return in a manner inconsistent with past practice, enter into any closing agreement relating to Taxes or any Tax Sharing Agreement (other than the Tax Consolidation Exit Agreement), consent to any extension or waiver of the limitations period applicable to any claim or assessment for Taxes, incur any Income Tax or other material Tax outside the ordinary course of business (other than with respect to the Pre-Closing Restructuring) that would not be indemnifiable under Section 8.2, or fail to pay any Tax as such Tax becomes due and payable, except, in each case, as required by applicable Tax Law; (i) make any acquisition of, or investment in, or loan to, or acquire all or substantially all of the properties or assets of, any Person or group of related Persons (or any division or business unit thereof), whether directly or indirectly (whether by purchase of stock, securities or equity interests, or by merger, consolidation or otherwise, and whether in one or a series of related transactions); (j) merge or consolidate with any other Person, or restructure, reorganize, or recapitalize any of the Companies or Transferred Subsidiaries; (k) (i) enter into, terminate, assume or amend in any respect that is materially adverse to the Business any Material Contract disclosed (or that would be required to be disclosed if it were entered into prior to the date hereof), determined for purposes of clauses (iv), (v) and (vi) of Section 2.9(a) by replacing references in such clauses to the 12-month period ended December 31, 2014, with what is reasonably expected for the 12-month period commencing on the Closing Date) under clauses (ii), (iv), (v), (vi), (viii) or (ix) of Section 2.9(a) or Section 2.19(a), or (ii) enter into any Lease that would be required to be disclosed if it were entered into prior to the date hereof under Section 2.10(c) that has a term in excess of twelve (12) months and that involves annual rental payments in excess of $75,000, individually, or $250,000, in the aggregate (it being agreed that, except as otherwise expressly provided in this Section 4.1, no member of the Company Group shall be permitted to enter into, terminate, assume or amend in any respect any other Contract or Material Contract (or any Contract that would be required to be disclosed as a Material Contract if it were entered into prior to the date hereof) other than in the ordinary course of business); provided, however, that this Section 4.1(k) shall not apply to any supplier, distributor, or customer Contracts related to the pressure division of the Business; and provided further, that Sellers shall have the right to redact any other Contracts containing competitively sensitive information as Seller’s counsel reasonably determines should not be disclosed to Buyer in connection with the provisions of this Section 4.1(k) in order to ensure compliance by the Parties with applicable Laws); (l) (i) enter into, assume, extend or amend in any material respect any employment agreement or other Contract with, or otherwise hire, any employee or other individual making (or proposed to be making) in excess of $150,000 per annum in aggregate base cash compensation, in each case, other than in the ordinary course of business consistent with past practice, or (ii) in any calendar year, make any hire, when taken together with all other hires or other cash compensation increases for existing employees during such year, that would result in total payroll expenses in respect of cash compensation for the Business for such year exceeding 105% of the total payroll expenses in respect of cash compensation for the Business incurred during the prior calendar year; (bm) use commercially reasonable efforts settle or compromise any Litigation or investigation involving or against the Business, any Company or any of the Transferred Subsidiaries, except (x) for matters for which a reserve has been made in the Financial Statements (provided that such settlement, offer or proposal is not in an amount in excess of such reserve and does not include any form of non-monetary or equitable relief (other than customarily provided in settlement and release agreements)), and (y) with respect to preserve intact any specific matter, a settlement that does not exceed $250,000, individually, or $1,000,000, in the goodwill aggregate, and does not involve any non-monetary or equitable relief (other than customarily provided in settlement and release agreements); (n) initiate any Litigation in the name or on behalf of any member of the Company Group that claims damages in excess of $1,000,000; (o) implement any layoffs implicating the WARN Act; (p) incur, offer, place, arrange, syndicate, assume, guarantee or otherwise become liable for, any Indebtedness for borrowed money (directly, contingently or otherwise), other than Indebtedness which can be paid-off in full at the Closing; (q) commit to make any future capital expenditure not made prior to Closing, except for capital expenditures that are consistent with the 2015 CapEx Budget or the capital expenditure budget for the Business adopted with respect to the 2016 fiscal year of the Company, which 2016 budget, for purposes of this paragraph, will not exceed 125% of the 2015 CapEx Budget; (r) make any material change to any intercompany services or arrangements provided to or on behalf of the Business and or any Company or Transferred Subsidiary that will continue following the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased AssetsClosing, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practicepractices; (is) not (i) exclusively licensecollect or discount accounts receivable, assign delay the payment of accounts payable or transfer any Purchased Business Intellectual Property accrued expenses, delay the purchase of services or any Purchased Business Technology to any Person (including any current supplies or former employee delay capital repairs or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose ofmaintenance, abandon, or permit to lapse any rights other than in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businesspractices; (kt) not manufactureterminate, or enter into any purchase commitments voluntarily decline to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the Permit material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pu) comply enter into, terminate, or make any material changes to a relationship with any supply chain management provider (including by modifying, amending or replacing existing arrangements with inbound or outbound third-party logistics providers), in all material respects each case without first consulting with all Laws applicable Buyer with respect thereto and giving Buyer the reasonable opportunity to review and comment thereon; (v) transfer the employment of any employee who is currently employed by a Company or a Transferred Subsidiary to a member of the Seller Group (other than the Excluded Employees), or transfer the employment of any employee who is member of the Seller Group (other than the Company or a Transferred Subsidiary) to the Business and, promptly following receipt thereof, give Company or a Transferred Subsidiary; or (w) agree or commit to the Purchaser copies of do any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Stock and Asset Purchase Agreement (Sensata Technologies Holding N.V.)

Conduct of the Business. From (a) During the period from the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.18.1), except (i) as required by Applicable Law or required by any Governmental Authority; (ii) as expressly permitted or required by applicable Law, under this Agreement; (iii) as set forth on Schedule 7.1 in Section 5.1(a) of the Seller Disclosure Schedule; (iv) any action taken in connection with disaster recovery, as contemplated by response or required mitigation (including with respect to implement this Agreement any epidemic, pandemic or disease outbreak (including the COVID-19 virus)) or related emergency response efforts with the intention of minimizing any Ancillary Agreement, adverse effect resulting from such efforts or (v) as otherwise waived or consented to or waived in writing by Purchaser (which consent waivers or consents shall not be unreasonably withheld, conditioned or delayed), Seller (to the extent related to the Business; provided that the following clauses (x) and (y) shall apply to Seller (and not only to the Target Company and its Subsidiaries) to the extent unrelated to the Business only if the act or omission in question would or would reasonably be expected to be materially adverse to the Target Company, its Subsidiaries or the Business) (x) shall: , and shall cause the Target Company and its Subsidiaries to, use commercially reasonable efforts to, (aA) operate and carry on the Business in all material respects in the ordinary course of business consistent with past practice and (B) preserve intact the business organization of the Business, maintain the relationships of the Target Company and its Subsidiaries with their respective customers and suppliers and other persons having material business relationships with the Business in all material respects, and use commercially reasonable efforts to keep available the services of its officers and key employees and (y) shall not, and shall cause the Target Company and its Subsidiaries not to (it being agreed that any action specifically addressed by any of the provisions below shall not constitute a breach of clause (x) unless such action is a breach of such provision below): (i) amend in any material respect or in any manner adverse to Purchaser any provision of the Constituent Documents of the Target Company or its Subsidiaries; (ii) issue, sell, pledge, transfer, dispose of or encumber (other than Permitted Liens) any Target Equity Interests or any other ownership or equity interests, or grant any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any Target Equity Interests or any other ownership or equity interests; (iii) declare or pay any dividend or make any other distribution (whether in cash, stock or property) in respect of any Target Equity Interests, or effect a reduction of the capital of the Target Company; (iv) except in relation to a Seller Consolidated or Combined Tax Group, (A) make, change or revoke any material Tax election of the Target Company and its Subsidiary, (B) change any method of accounting for Tax purposes of the Target Company and its Subsidiary, (C) amend any material Tax Return of the Target Company and its Subsidiary, (D) settle or otherwise resolve any claim for, or enter into any closing or similar agreement regarding, any material amount of Taxes of the Target Company and its Subsidiary, (E) surrender any right to claim a refund of any material amount of Taxes paid of the Target Company and its Subsidiary, (F) cause the Target Company or its Subsidiary to enter into any Tax Sharing Agreement or (G) consent to any extension or waiver of the limitation period applicable to any material Tax matter of the Target Company or its Subsidiary; (v) transfer, sell, lease, or otherwise dispose of, xxxxx x Xxxx on or permit a Lien to exist on, any material properties or assets of the Target Company or its Subsidiaries, other than (A) any Permitted Liens or (B) with respect to Intellectual Property Rights; (vi) incur or assume any Debt or issue any debt securities or assume, grant, guarantee or endorse, or make any other accommodation arrangement making the Target Company or its Subsidiaries responsible for, the obligations of any other Person, or any loans, advances, capital contributions or investments in any other Person; (vii) cancel, satisfy or discharge any debts or claims or amend, terminate or waive any rights of value in respect of the Target Company or its Subsidiaries, other than in the ordinary course of business consistent with past practice; (bviii) use commercially reasonable efforts make any capital expenditures exceeding $25,000 per expenditure or $100,000 in the aggregate for, by or on behalf of the Target Company or its Subsidiaries; (ix) make any loan to preserve intact the goodwill (or forgive any loan to) or enter into any other transactions with any of the Business and the relationships Employees; (x) abandon, allow to lapse, fail to maintain, transfer, assign, dispose of Seller with its or xxxxx x Xxxx (other than a Permitted Lien) on any Registered IP, (B) assign, transfer, grant any License (other than non-exclusive Licenses granted to customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively consultants or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable partners in the ordinary course of businessbusiness consistent with past practices) under or with respect to, subject or xxxxx x Xxxx (other than a Permitted Lien) on any Intellectual Property Rights included in the Business IP that are material to the Seller’s ability Business; (C) disclose any material Confidential Information of the Target Company or any of its Subsidiaries to pursue any Person (other than pursuant to written confidentiality agreements entered into in good faith the ordinary course of business that contain reasonable protections to preserve all rights therein); (D) take any bona fide disputesaction, or knowingly omit to do any act, whereby any Registered IP becomes invalidated, abandoned, unmaintained, unenforceable or dedicated to the public domain; (E) subject any source code for any material proprietary Software included in the Business IP to Copyleft Terms; or (F) disclose any source code included in the Business IP to any Person (other than providing access to current employees and consultants of the Target Company (or current employee and consultants of Seller who had access to such source code in the ordinary course of business prior to the date hereof) on a need to know basis in the ordinary course of business and consistent with past practice); (hxi) not sell, lease, license, transfer, abandon, pledge, encumber take any action that would result in the Target Company having one or more Subsidiaries (other than Permitted Encumbrancesas listed on Section 3.1(e) of the Seller Disclosure Letter), fail to maintain or acquire any equity interests in any other Person; (xii) acquire by merger or consolidation with, or by purchase of a substantial portion of the assets or business of, or by any other manner, any Person or any division or line of business thereof, or otherwise dispose acquire any material assets of or Equity Interests in any Person, or enter into any new line of business that is material to the Business, taken as a whole, in each case solely with respect to the Target Company and its Subsidiaries; (xiii) adoption of any Purchased Assetsplan of merger, consolidation, or reorganization by or with respect to the Target Company or its Subsidiaries, file a petition in bankruptcy under any provisions of federal or state bankruptcy law, consent to the filing of any bankruptcy petition against the Target Company under any similar law, or liquidate, dissolve or effect a recapitalization, reclassification of shares, stock split, reverse stock split or reorganization of the Target Company; (xiv) other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice, amend, modify, waive or terminate, in each case, in any material respect, any material right under any existing Material Contract, or enter into any contract that would, if entered into prior to the date hereof, constitute a Material Contract, except renewals of existing Material Contracts on terms that are, in the aggregate, at least as favorable to the Target Company or its Subsidiaries as the terms thereof on the date of this Agreement; provided, however, that in no event shall the Target Company or its Subsidiaries enter into, amend, modify, waive or terminate, in each case, a Material Contract referred to in Section 3.15(a)(ii) or enter into any contract that would, if entered into prior to the date hereof, constitute a Material Contract referred to in Section 3.15(a)(ii); (ixv) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside increase in the compensation payable to the Business Employees, except increases granted in the ordinary course of business and consistent with past practices, or sell Inventory increases required by Applicable Law or any Employee Plan; (xvi) other than as required under Applicable Law, adopt, amend in any material respect or terminate any Employee Plan that is maintained, entered into or sponsored by the Target Company or its Subsidiaries other than an Employee Plan not having contractual effect; (xvii) enter into any severance agreement with, or grant any severance or termination payment to, any Business Employee or individual independent contractor providing services primarily to the Business other than as required by Applicable Law, any Employee Plan or any agreement in effect on the date hereof; (xviii) hire, engage or terminate without cause any Business Employee having an annual base salary in excess of consumption consistent with past practices $100,000; (A) grant any most favored nation pricing, rebate or volume discount arrangement to any customer, or (B) other than in the ordinary course of business;, make any material change in the manner in which the Target Company or any of its Subsidiaries markets its products or extend discounts or credits to customers; or (kxx) not manufacture, or enter into any purchase commitments a Contract or otherwise agree to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew take any of the material Permits related to foregoing actions, or take any action that would result in any of the Business;foregoing. (mb) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided Nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall Agreement is intended to give Purchaser, directly or indirectly, the right to control or direct the Business or the Target Company’s or its Subsidiaries’ operations of Seller prior to the Closing. Prior to the Closing, Seller shall exercise, to the extent consistent with the terms and conditions of this Agreement and the requirements and obligations of the CMA (including, but not limited to as set forth in the CMA Final Order), complete control and supervision over the Target Company’s or its Subsidiaries’ operations.

Appears in 1 contract

Samples: Stock Purchase Agreement (Shutterstock, Inc.)

Conduct of the Business. From During the date period from the execution and delivery of this Agreement until the Closing (or by Seller and continuing until the earlier of the termination of this Agreement in accordance with Section 11.1)or the Closing, except as expressly required by applicable Law, as set forth on Schedule 7.1 without the advance written consent of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall will not be unreasonably withheld, conditioned or delayed) Seller shall (and shall cause its Subsidiaries to), Seller shall: in each case as applicable to the Business, (ai) operate and carry on the Business in the usual, regular and ordinary course of business consistent with past practice; , (bii) pay Liabilities and Taxes (other than Taxes and Liabilities, if any, that are not Assumed Liabilities and that are being contested in good faith through appropriate proceedings) consistent with Seller’s past practices (and in any event when due), (iii) pay or perform other obligations when due consistent with Seller’s past practices (other than other obligations, if any, that are not Assumed Liabilities and that are being contested in good faith through appropriate proceedings), (iv) comply with all applicable Laws in all material respects, and (v) use commercially reasonable efforts (which shall not include the making of extraordinary payments) to preserve intact the goodwill Purchased Assets and the Business, keep available the services of the Business Employees, and the preserve relationships of Seller with its customers, vendors, suppliers, Business Employees distributors, licensors, licensees, lessors, employees, independent contractors and others other Persons having business relations dealings with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, purpose and use commercially reasonable efforts to maintain in effect all material Permits required for intent of preserving unimpaired the Purchased Assets and the goodwill and ongoing operation business of the Business as presently conducted; (e) perform all of Seller’s material obligations under at the Assigned Contracts Closing. Except [****] = Certain confidential information contained in accordance this document, marked by brackets, has been omitted and filed separately with the terms thereof; (f) refrain from makingSecurities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, changing or revoking any Tax election; refrain from adopting or changing any accounting method as amended. Confidential treatment has been requested with respect to Taxes; refrain from filing the omitted portions. as expressly required by this Agreement, Seller shall not (and shall cause its Subsidiaries not to), without the prior written consent of Purchaser (which will not be unreasonably withheld or delayed), knowingly take any amended Tax Return; refrain from entering into action that would cause, or agree in writing or otherwise to take any action that Seller knows would cause, any condition to Purchaser’s closing agreement, settling obligations in Section 6.1 or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber Section 6.3 (other than Permitted EncumbrancesSection 6.3(a), fail to maintain ) (or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets Seller’s closing obligations in the ordinary course of business consistent with past practice; (iSection 6.1 or Section 6.2) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside be satisfied. Without limiting the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any generality of the material Permits related to foregoing, during the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at period from the end execution and delivery of this Agreement by Seller and continuing until the earlier of the stated term after the date hereof); (n) not waive, release, assign valid termination of this Agreement or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided required by this Agreement or the Ancillary Agreements, and except as set forth in this Section 7.1Schedule 4.1, nothing in this Section 7.1 Seller shall prohibit Seller not take, cause or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms permit any of the Agreementfollowing actions, including this Section 7.1. Nothing contained herein shall give Purchaser, directly without the prior written consent of Purchaser (which will not be unreasonably withheld or indirectly, the right to control or direct the operations of Seller prior to Closing.delayed):

Appears in 1 contract

Samples: Asset Purchase Agreement (Advanced Micro Devices Inc)

Conduct of the Business. From Each of WHF Parent and the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Sellers covenants and agrees that, except as expressly otherwise contemplated by this Agreement (including the Schedules and Exhibits hereto), during the period commencing on the date hereof and ending on the Closing Date, WHF Parent and the Sellers will cause each of WPI and WIN to use their reasonable efforts to conduct the Business in the ordinary course consistent with past practices, to keep available the services of the employees of WPI and WIN, to preserve the relationships of WPI and WIN with their customers, suppliers, advertisers, distributors and other Persons with which WPI and WIN have significant relations, to make payments and collect receivables in a manner consistent with past practice, and to maintain and preserve intact the Business in all material respects with a view toward preserving to and after the Closing Date the Business and the assets and the goodwill of WPI and WIN (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 agreement or offer or grant any financial accommodation or other benefit not otherwise required to be made by the terms of an existing agreement). Until the Closing, except as otherwise contemplated by this Agreement (including the Schedules and Exhibits hereto) or any Transaction Document, permitted by the Tax Sharing Agreement, required by any change in applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by Law or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to approved in writing by Purchaser Buyer (which consent approval shall not be unreasonably withheld, conditioned withheld or delayed), Seller shalleach of WHF Parent and the Sellers will cause WPI, WIN and the Company not to take any of the following actions: (i) (a) operate amend its Certificate of Incorporation or Bylaws; (b) authorize for issuance, issue, grant, sell, deliver, dispose of, pledge or otherwise encumber any shares of its capital stock or issue any Rights to subscribe for or acquire any shares of its capital stock; (c) amend the Certificate of Formation of the Company; or (d) authorize for issuance, issue, grant, sell, deliver, dispose of, pledge or otherwise encumber any LLC Units; (ii) declare, set aside, pay or make any dividend or other distribution with respect to its shares of capital stock, except for cash dividends and carry on any dividend or distribution to WHF Parent in respect of indebtedness owed by WHF Parent to WPI; (iii) except as required by GAAP, change any accounting methods, principles or practices; (iv) sell, transfer, license, grant permission to use or otherwise dispose of or encumber any of the assets pertaining to the Business, including the Business Intellectual Property or rights related thereto, other than in the ordinary course of business consistent with past practice; (v) (a) create, incur or assume any long-term debt that will be transferred to the Company in the Contribution, (b) use commercially reasonable efforts assume, guarantee, endorse or otherwise become liable or responsible (whether directly, contingently or otherwise) for any material obligations of any Person, (c) make any loans, advances or capital contributions to or investments in any Person other than the Sellers, WPI or the Acquired Subsidiaries (except for customary loans or advances to employees), (d) fail to preserve intact or protect their rights in all material Business Intellectual Property or to renew, maintain, or take such steps or make such payments and filings, in each case, as may be reasonably necessary to preserve the goodwill validity and enforceability of all Registered Intellectual Property, or (e) breach, terminate, nullify, fail to renew, allow to lapse or otherwise act or fail to act in such a manner as to diminish any of WPI's or WIN's rights under the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessIP Licenses; (cvi) continue to maintain (a) grant any increase in the Books, Records and Files compensation of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation employees of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingBusiness, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; except for year end salary adjustments and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable year end bonuses made in the ordinary course of businessbusiness consistent with past practice, subject (b) hire new employees other than in the ordinary course of business consistent with past practice, (c) enter into any new employment, severance, consulting or other compensation agreement with any director, officer or employee of WPI or WIN, except for the employment agreements disclosed in Section 5.1(a)(vi) of the Disclosure Schedule in the forms previously delivered to Buyer (which employment agreements and the Seller’s ability Liabilities relating thereto shall be assumed by Buyer at the Closing), or (d) adopt or commit to pursue any pension, profit-sharing, deferred-compensation, group insurance, severance pay, retirement or other Employee Benefit Plan, fund or similar arrangement or amend or terminate in good faith any bona fide disputesrespect or commit itself to amend any Employee Benefit Plan; (hvii) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail waive any claims or rights relating to maintain or otherwise dispose of any Purchased Assetsthe Business, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (iviii) not (i) exclusively licensemake any material Tax election, assign or transfer change any Purchased Business Intellectual Property or method of accounting with respect to a material Tax, file any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonmaterial amended Tax Return, or permit settle or compromise any proceeding with respect to lapse any rights a material Tax Liability, in or each case with respect to any Purchased Business Intellectual Property or any Purchased Business Technologythe Acquired Subsidiaries; (jix) not (a) grant any allowances material bonus, free or discounts on Products outside make good space to any advertiser or change the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew discount structure for any of the material Permits related to the Business; (m) not amend' advertising customers, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice, (b) (1) change the subscription pricing of any of the publications of the Business or (2) enter into, amend or terminate any material arrangements with any subscription agents, (c) change any cover prices, wholesaler discounts or make any other changes to the incentive sales programs (wholesale or retail) of the Business, (d) enter into any material licensing agreement, arrangement or understanding with respect to television, radio, Internet or other media or enter into any material licensing agreement, arrangement or understanding with respect to any "branded" merchandise bearing any of the trademarks or tradenames used in the Business owned or licensed by the Sellers or the Acquired Subsidiaries; (e) enter into, amend or terminate any agreements or arrangements with the national distributor of the publications; or (f) take any action with respect to the publications of the Business in contravention of the advice of the litigation counsel of the Business; (px) comply in all material respects enter into any contract, arrangement or commitment with all Laws applicable respect to the Business and, promptly following receipt thereof, give involving the payment of more than $100,000 or otherwise material to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andBusiness; (qxi) not take cancel any material actions that could reasonably be expected third party indebtedness owed to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit any Seller or its Affiliates from conducting their businessesAcquired Subsidiary; (xii) in connection with the transactions contemplated by the Contribution Agreement, including offer, or cause or permit the Company to offer employment to any employees of the Business, such offers of employment shall be made by the Buyer pursuant to Section 5.7(a) of this Agreement; or (xiii) agree, whether in their reasonable discretion provided it shall comply with the terms writing or otherwise, to do any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Purchase and Contribution Agreement (American Media Operations Inc)

Conduct of the Business. (a) From the date of this Agreement hereof until the Closing Date, the Company shall (1) conduct its business and the businesses of its Subsidiaries in the ordinary course of business and in substantially the same manner previously conducted, (2) use commercially reasonable efforts to maintain and preserve intact its business organization and the goodwill of those having business relationships with it and retain the services of its present officers and key employees, in each case, and (3) continue to collect accounts receivable and pay accounts payable utilizing normal procedures and without discounting or accelerating payment of such accounts, except (i) where the Purchaser shall have consented in writing (which consent will not be unreasonably withheld or delayed), or (ii) as otherwise contemplated hereby; provided that (x) no action by the Company or its Subsidiaries with respect to matters specifically addressed by any other provision of this Section 6.01 shall be deemed a breach of this Section 6.01(a), unless such action would constitute a breach of one or more of such other provisions, (y) the Company and its Subsidiaries’ failure to take any action prohibited by Section 6.01(b) shall not be a breach of this Section 6.01(a) and (z) the Company may use all available cash to repay any Indebtedness or make cash dividends on or prior to the Closing. (b) From the date hereof until the earlier termination of this Agreement in accordance with Section 11.1)Closing Date, except as expressly required by applicable Law, (i) as set forth on the Conduct of Business Schedule 7.1 of the Seller Disclosure Scheduleattached hereto, (ii) as contemplated by specifically and affirmatively permitted or required to implement by this Agreement or any Ancillary Agreement, (iii) as disclosed by the Company to the Purchaser prior to the Closing (so long as the cost of such disclosed item is treated as a Transaction Expense) or (iv) as otherwise waived or consented to in writing by the Purchaser (which consent shall will not be unreasonably withheld, conditioned withheld or delayed), Seller shall:the Company shall not, and shall not permit any Subsidiary of the Company to: (A) (1) issue, sell, grant, pledge or otherwise encumber any shares of its or any of its Subsidiaries’ capital stock (other than in connection with the exercise of options or warrants outstanding as of the date hereof or obligations to issue Company Stock as set forth on the Capital Stock Schedule) or issue or sell any securities convertible into, or options with respect to, or warrants to purchase or rights to subscribe for, any shares of its or any of its Subsidiaries’ capital stock, or (2) adversely (from the Company’s perspective) amend (including by reducing an exercise price or extending a term) or waive any of its rights under, or accelerate the vesting under, any provision of any stock plan or any agreement evidencing any outstanding stock option or other right to acquire capital stock of the Company or any restricted stock purchase agreement or any similar or related contract; (B) effect any recapitalization, reclassification, stock dividend, stock split or like change in its capitalization or declare, set aside or pay any non-cash dividends on, or make any other non-cash distributions in respect of, any of its capital stock; (C) amend its or any of its Subsidiaries’ certificate or articles of incorporation or bylaws (or equivalent organizational documents); (D) make any redemption or purchase of any shares of its or any of its Subsidiaries’ capital stock (other than with respect to the repurchase of shares of Company Stock from former employees of the Company or its Subsidiaries pursuant to existing agreements or pursuant to any agreement set forth on the Capital Stock Schedule); (E) acquire or sell, assign, transfer, license, convey, lease or otherwise dispose of, any properties or assets (whether by merger, consolidation, equity sale or otherwise) that are material, individually or in the aggregate, to the (a1) operate hire any employee or consultant that is entitled to severance and carry will receive annual compensation in excess of $150,000, (2) take any action to increase or accelerate the vesting or payment (or fund or in any other way secure the payment) of compensation or benefits of any of its current or former directors, officers, employees, consultants or independent contractors except (x) as required by an existing Company Employee Plan or existing agreement set forth on the Business Contracts Schedule as of the date of this Agreement, or (y) increases in salaries, wages and benefits of employees made in the ordinary course of business and in amounts and in a manner consistent with past practice; (3) enter into, establish, amend, terminate, or create any new collective bargaining agreement or Company Employee Plan with, for or in respect of, any stockholder, director, officer, other employee, consultant or Affiliate, other than as required pursuant to applicable Law; or (4) grant any severance, termination or change in control bonus pay to any current or former director, officer, employee, consultant or independent contractor, except as required by an existing Company Employee Plan or existing agreement set forth on the Contracts Schedule; (P) enter into any new line of business or change in any material respect its risk management or similar policies; (Q) terminate, materially and adversely (from the Company’s perspective) amend, restate, supplement or waive any rights under any inbound license for Intellectual Property, other than in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts , or fail to preserve intact pay all maintenance and similar fees or to take all other appropriate actions as necessary to prevent the goodwill abandonment, loss or impairment of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related all owned Company Intellectual Property that is material to the Business on a basis consistent with past practicebusiness; and (dR) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing settle or revoking compromise any Tax election; refrain from adopting pending or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (threatened Legal Proceedings other than Permitted Encumbrances), fail to maintain settlements and compromises that are less than $100,000 or otherwise dispose of that do not create binding precedent for other pending or potential third party claims or Legal Proceedings; or (S) authorize any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit commit or agree to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectlyof, the right to control or direct the operations of Seller prior to Closingforegoing actions.

Appears in 1 contract

Samples: Merger Agreement (Vantiv, Inc.)

Conduct of the Business. From The Seller and the date of this Agreement Shareholders (as applicable) covenant and agree with the Buyer that from and after the Effective Date until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required authorized by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or expressly consented to in writing by Purchaser the Buyer, the Seller and the Shareholders (which consent shall not be unreasonably withheldas applicable) shall, conditioned or delayed), Seller shalland to the extent the same would affect the Proprietary Rights: (a) operate and carry on the Business and the Transferred Assets only in the usual, regular and ordinary course of business with a view to maintaining the goodwill that the Seller now enjoys and, to the extent consistent with past practicesuch operation, will use all reasonable efforts to preserve intact its present business organization, keep available the services of its employees and preserve its relationships with its customers, suppliers, jobbers, distributors and other Persons having business relations with it; (b) use commercially all reasonable efforts to preserve intact maintain the goodwill Transferred Assets in a state of the Business repair, order and the relationships of Seller condition consistent with its customers, vendors, suppliers, Business Employees and others having ordinary course of business relations in connection with the Business; (c) continue to maintain the Books, Records its books of account and Files of Seller and its Affiliates exclusively or primarily related records relating to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to in accordance with the Seller’s ability to pursue in good faith any bona fide disputesusual accounting practices applied on a consistent basis; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pd) comply in all material respects with all Laws statutes, laws, orders and regulations applicable to it and to the conduct of the Business; (e) not sell, assign, transfer, lease or otherwise dispose of any Proprietary Rights, Equipment or any of the other Transferred Assets except for dispositions of Inventories for value in the usual and ordinary course of business or other than to the Buyer pursuant to the terms of this Agreement; (f) preserve and maintain all rights that it now enjoys in and to the Proprietary Rights and not sell, assign, transfer, lease or otherwise dispose of any Proprietary Rights other than to the Buyer pursuant to the terms of this Agreement; (g) not mortgage, pledge or otherwise create a security interest in any of the Transferred Assets or permit there to be created or exist any Liens thereon other than Permitted Liens; (h) not enter into any contract, commitment or lease in relation to the Business andthat is out of the ordinary course of the Business or, promptly following receipt thereofif effective on the date hereof, give would be required to be disclosed in Schedule 3.05(a) of the Disclosure Schedule; (i) not amend or modify any of the Contracts and Other Agreements disclosed in Schedule 3.05(a) of the Disclosure Schedule or any other contract, commitment, lease or other agreement that would, if entered into on the date hereof, be required to be disclosed on any Schedule to this Agreement, including the Disclosure Schedule; (j) not consent to the Purchaser copies termination of any notice received from of the Contracts and Other Agreements disclosed in Schedule 3.05(a) of the Disclosure Schedule or waive any Governmental Authority of the Seller’s rights with respect thereto; (k) not grant any increase in the compensation or other Person alleging rate of compensation or commissions or bonuses payable to or severance obligations for any violation of employees or in any bonus plan and not transfer or otherwise change any of the terms or conditions of employment of any of the employees except the bonuses contemplated in Section 6.02; (l) not permit any insurance policy naming it as a beneficiary or a loss payee relating to the Business or the Transferred Assets to be canceled or terminated or any of the coverage thereunder to lapse unless simultaneously with such Lawstermination or cancellation replacement policies providing substantially the same coverage are in full force and effect; and (qm) not take pay when due all accounts payable, all payments required by any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the AgreementContracts and Other Agreements, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, and all Taxes other than Taxes that are being contested in good faith and for which adequate reserves against the right to control or direct Transferred Assets exist and which would not result in a Lien being imposed on any of the operations of Seller prior to ClosingTransferred Assets.

Appears in 1 contract

Samples: Asset Purchase Agreement (DXP Enterprises Inc)

Conduct of the Business. From During the date of this period from the Agreement until the Closing (or Date and continuing until the earlier of: (a) the termination of this Agreement Agreement; (b) the date that Capricorn and its Affiliates have purchased the SPR and PCR Business in accordance with Section 11.1the Capricorn Repurchase Right (as defined below); (c) the date that the Deed of Share Charge (as defined below) is duly terminated; or (d) the date the amount of the Escrow Deposit (as defined in the Deed of Share Charge) reflects the Qualified Amount (as defined in the Deed of Share Charge), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as Parties shall and shall cause the Seller Group to (except to the extent expressly contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Capricorn or Capricorn Sub in their reasonable discretion) to carry on such businesses in the usual, regular and ordinary course, consistent with past practice, in substantially the same manner as heretofore conducted, to pay debts and Taxes when due subject to good faith disputes over such debts or Taxes, to pay or perform other obligations when due, and to use all reasonable efforts consistent with past practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees and preserve its relationships with customers, suppliers, distributors, licensors, licensees, and others having business dealings with it, to the end that its goodwill and ongoing Business shall be unimpaired. The Seller Parties shall and shall cause the Seller Group to promptly notify Capricorn and Capricorn Sub of any event or occurrence not in the ordinary course of its business, consistent with past practice, and of any event which could have a Material Adverse Effect on any Seller Group Member or which could reasonably be expected to result in the representations and warranties of the Seller Parties not being true and correct as of the Closing. Without limiting the foregoing, except as expressly contemplated by this Agreement or with the prior written consent of the Capricorn or Capricorn Sub (which such consent shall not to be unreasonably withheld, conditioned or delayed), no Seller shallParty shall do, cause or permit any of the following, nor shall any Seller Party cause or permit any Seller Group Member to do cause or permit any of the following: (a) operate and carry on Issuance of Securities. Issue, deliver or sell or authorize or propose the Business in issuance, delivery or sale of, or purchase or propose the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts purchase of, any shares or securities convertible into, or subscriptions, rights, warrants or options to preserve intact the goodwill of the Business and the relationships of Seller with its customersacquire, vendorsconvertible loans, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing other agreements or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose commitments of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology character obligating it to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with issue any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority shares or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.convertible securities;

Appears in 1 contract

Samples: Business Acquisition Agreement

Conduct of the Business. From (a) During the period commencing on the date of this Agreement until the Closing (or until hereof and ending on the earlier of the termination of this Agreement in accordance with Section 11.1its terms and the Closing (the “Interim Period”), except as (i) otherwise expressly provided in this Agreement, (ii) set forth in Schedule 6.1, (iii) required by any Law or Order applicable Law, as set forth on Schedule 7.1 of to Seller or the Seller Disclosure Schedule, as contemplated by Acquired Assets or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or (iv) consented to in writing by Purchaser Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: shall use commercially reasonable efforts to (aA) operate and carry on the Business in the ordinary course of business consistent with past practice; business; (bB) use commercially reasonable efforts to maintain and preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Acquired Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business; and (C) maintain and preserve the relationships and goodwill with customers, subject suppliers and other third parties having material business dealings with the Business. Asset Purchase Agreement-23- (b) Without limiting the generality of the foregoing Section 6.1(a), during the Interim Period, except as (i) otherwise expressly provided in this Agreement, (ii) set forth in Schedule 6.1(a) or (iii) required by any Law or Order applicable to Seller or any of its Subsidiaries or the assets or operation of the Business, Seller shall not take any of the following actions with respect to the Seller’s ability Business without the prior written consent of Buyer (which consent shall not be unreasonably withheld, conditioned or delayed): (i) (A) terminate or materially amend in writing any Material Contract (other than any automatic renewal or expiration of such Material Contract in accordance with its terms), (B) enter into any Contract that creates a material Liability for the Business following the Closing, or (C) cancel, compromise or settle any material claim, or intentionally waive or release any material right with respect to pursue in good faith any bona fide disputesMaterial Contract or with regard to any Contract described by clause (B) above; (hii) not grant or suffer to exist any material Lien, other than any Permitted Liens, on any of the Acquired Assets; (iii) sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain assign or otherwise dispose of any Purchased Assets, other than the sale of Inventory and material Acquired Assets except (A) pursuant to existing Contracts or (B) for sales or other dispositions of assets inventory in the ordinary course of business consistent with past practice; (i) for the avoidance of doubt, liquidating or substantially discounting inventory shall not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices be considered a sale in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (niv) not waiveincrease the base salary, releasewage rate, assign change in control, retention, bonus, severance or modify termination pay of any material benefit or claim under any Assigned ContractDivision Employee; (ov) settle or compromise any material legal proceeding relating to the Acquired Assets that does not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practiceconstitute an Excluded Liability; (pc) comply abandon, dispose of or terminate ownership rights in all material respects with all Laws applicable to any Intellectual Property of the Business and, promptly following receipt thereof, give or otherwise permit any of their rights to any Intellectual Property of the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such LawsBusiness to lapse; andor (qd) not agree in writing to take any material of the actions that could reasonably be expected to delay in the Closing; provided, however, except as expressly provided in foregoing clauses of this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing6.1(b).

Appears in 1 contract

Samples: Asset Purchase Agreement (Houston Wire & Cable CO)

Conduct of the Business. From the date of Notwithstanding anything contained in this Agreement until to the Closing contrary, Purchaser acknowledges and agrees that neither of the Companies nor the Seller is making any representations or warranties whatsoever, expressed or implied, beyond those expressly giving by the Companies and the Seller, as the case may be, in Article III, ‎Article IV and VI, respectively (as modified by the Schedules hereto as supplemented or until amended), and Purchaser acknowledges and agrees that, except for the earlier termination representations or warranties contained therein, the assets and the business of the Companies are being transferred on a “where is” and, as to condition, “as is” basis. Any claims Purchaser may have for breach of representations or warranties shall be based solely on the representations and warranties of the Companies and the Seller, set forth in Article III, ‎Article IV or Article VI, respectively (as modified by the Schedules hereto as supplemented or amended). Purchaser further represents that none of the Companies, any Seller or any of their respective Affiliates, nor any other Person has made any representations and warranties, express or implied, as to the accuracy or completeness of any information regarding the Companies, the Seller, or the transactions contemplated by this Agreement in accordance with Section 11.1), except as not expressly required by applicable Law, as set forth on Schedule 7.1 in this Agreement, and none of the Seller Disclosure ScheduleCompany, as contemplated by or required to implement this Agreement the Seller, any of their respective Affiliates or any Ancillary Agreementother Person will have or be subject to any liability to Purchaser or any other Person resulting from the distribution to Purchaser or its representatives or Purchaser’s use of, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheldany such information, conditioned or delayed), Seller shall: (a) operate and carry including any confidential memoranda distributed on the Business in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill behalf of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related Companies relating to the Business on a basis consistent with past practice; and (d) continue Companies or other publications or data room information provided to make all necessary and material filings and payments with Governmental Authorities Purchaser or its representatives in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation sale of the Business as presently conducted; (e) perform all Companies and the Transaction. Purchaser acknowledges that it has conducted to its satisfaction, its own independent investigation of Seller’s material obligations under the Assigned Contracts condition, operation and business of the Companies and, in accordance making its determination to proceed with the terms thereof; (f) refrain from makingTransaction, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver Purchaser has relied on the results of its own independent investigation based upon the information supplied by Seller. As of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of businessdate hereof, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) Purchaser is not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose aware of any Purchased Assetsfacts, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign events or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew circumstances that would cause any of the material Permits related to the Business; (m) not amend, modify, cancel representations or terminate any Assigned Contract (other than terminations or expirations at the end warranties of the stated term after the date hereof); (n) not waive, release, assign Companies set forth in Article III hereof to be untrue or modify incorrect in any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingrespect.

Appears in 1 contract

Samples: Share Purchase Agreement (Myecheck, Inc.)

Conduct of the Business. From (a) During the date of Interim Period, except (i) as otherwise expressly permitted or required by this Agreement until the Closing (or until the earlier termination of this Agreement including as described in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 6.1 of the Seller Disclosure ScheduleSchedule or the Intercompany Transfers) and the Transaction Documents, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or (ii) as otherwise waived or consented to approved in writing by Purchaser Buyer (which consent approval shall not be unreasonably withheld, conditioned or delayed) or (iii) making any dividend, payment or other distribution of cash or cash equivalents on or prior to the Effective Time, and, in each case, without limiting the rights of Sellers or their Affiliates to the extent with respect to Retained Assets and the Retained Liabilities, Sellers shall, with respect to the Company Entities and the Business, and shall cause the Company Entities and, with respect to the Business, the other Seller Entities to conduct the Business in the ordinary course of business, and shall use reasonable best efforts to preserve, maintain and protect the goodwill, material insurance policies, material business relationships including with respect to key employees and Governmental Authorities and the assets and properties of the Company Entities and the Business (ordinary wear and tear excepted). (b) In furtherance and not in limitation of Section 6.1(a), during the Interim Period, except (i) as otherwise expressly permitted or required by this Agreement (including as described in Section 6.1 of the Seller shallDisclosure Schedule or in connection with the Intercompany Transfers) and the Transaction Documents, (ii) as required by applicable Law, or (iii) as otherwise approved in writing by Buyer, and, in each case, without limiting the rights of Sellers or their Affiliates to the extent with respect to the Retained Assets and the Retained Liabilities, Sellers shall not, with respect to the Company Entities or the Business, and shall cause the Company Entities and, with respect to the Business and the Transferred Assets, the other Seller Entities not to, take any of the following actions: (ai) operate and carry amend the Governing Documents of (A) any Company Entity or (B) to the extent such amendment would materially delay or impact the ability of the parties to consummate the transactions contemplated herein, BKG (other than solely to reflect any changes of the names of the Company Entities); (ii) except as required under any Employee Benefit Plan, authorize for issuance, issue, grant, sell, deliver, dispose of, pledge or otherwise encumber any Equity Interests any Company Entity, or grant any Rights with respect to any Company Entity; (iii) declare, set aside, make or pay any dividend, payment or other distribution, in respect of the Company Interests to Sellers, other than any dividend, payment or other distribution of cash or cash equivalents made or paid on or prior to the Effective Time; (iv) (A) increase any severance or termination pay (or amend any existing severance pay or termination arrangement) for the benefit of any of the Business Employees or other service providers of the Company Entities or the Business with annual compensation (consisting of annual base salary and target cash bonus or commissions) in excess of $100,000, (B) enter into any employment, deferred compensation or other similar agreement (or amend any such existing agreement) for the benefit of any of the Business Employees or other service providers of the Company Entities or the Business with annual compensation (consisting of annual base salary and target cash bonus or commissions) in excess of $100,000, (C) increase benefits payable under any existing broad-based severance or termination pay policies applicable to the Business Employees, (D) except for the hiring of an individual made in the ordinary course of business in accordance with ordinary course hiring practices to fill a vacancy arising due to cessation of employment of a Business Employee following the date hereof (with such new hire to have a substantially comparable role and terms and conditions of employment as such former employee), hire any individual who would be treated or characterized as a Business Employee with annual compensation (consisting of annual base salary and target cash bonus or commissions) in excess of $100,000, (E) terminate the employment of any Business Employee, other than for cause, with annual base salary and incentive compensation opportunity that exceeds $100,000 or (F) increase the compensation payable (including wages, salaries or bonuses) or to become payable to any Business Employee except for increases (1) required in accordance with the terms of any Employee Benefit Plan or Labor Contract or (2) made in the ordinary course of business consistent with past practice with respect to any such Business Employee with annual base salary less than $100,000; (v) establish, adopt, enter into, amend or terminate any Employee Benefit Plan or any Labor Contract for the benefit of any Business Employee, except in the ordinary course of business consistent with past practice (including any adoption of any new Labor Contract as a result of the expiration (or pending expiration) of any current Labor Contract and any adoption or amendment of Employee Benefit Plans in connection with annual compensation and benefit review) or to the extent any such action does not disproportionately affect the Business Employees as compared to Sellers’ other employees; (vi) sell, transfer or otherwise dispose of, or grant or impose any Liens (other than Permitted Liens) on, any assets of the Business (other than (x) sales of Inventory in the ordinary course of business or sales of obsolete assets, in each case consistent with past practice and (y) use of cash and cash equivalents) to any Person (other than any Company Entity) having a value in excess of $1,000,000; (vii) purchase or acquire (by merger, consolidation or combination, or otherwise) any assets (including Equity Interests) of any Person having a value in excess of $1,000,000; (viii) without limiting, modifying or waiving the restrictions set forth in Section 6.1(b)(ix) below with respect to the Subject Agreement, (A) enter into any Contract that if entered into prior to the date hereof would be deemed a Material Contract, (B) amend in any material respect any Material Contract (other than on terms no less favorable than its existing terms), or (C) terminate any Material Contract (other than any expiration in accordance with its terms); provided that, Buyer’s consent with respect to (I) clauses (A) through (C) shall not be unreasonably withheld and (II) clauses (A) and (B) shall not be required with respect to (x) the extension or renewal of any customer Contract on terms no less favorable than as provided in the underlying customer Contract in effect as of the date hereof or (y) the amendment or renewal for a period of no longer than two (2) years of any supplier Contract otherwise on terms no less favorable than as provided in the underlying supplier Contract in effect as of the date hereof ; (ix) amend, modify or waive any material rights under the Contract set forth on Section 7.2(f)(i)(B)(2) of the Seller Disclosure Schedule (the “Subject Agreement”); (x) enter into or amend any Affiliate Contract; (xi) except as required by IFRS, make any change in any method of accounting or auditing practice with respect to the Business; (xii) (A) make, change or revoke any material Tax election, (B) adopt or change any Tax accounting method, (C) settle or compromise any claim, notice, audit report or assessment in respect of material Taxes, (D) change any Tax period, (E) file any amended material Tax Return or claim for a material Tax refund, (F) surrender or abandon any right to claim a refund of material Taxes, (G) enter into any pre-filing agreement, advance pricing agreement or closing agreement, in each case, with any Taxing authority, (H) request any Tax ruling from a competent Authority, (I) consent to any extension or waiver of the statute of limitations period applicable to any Tax claim or assessment (other than as a result of an ordinary course extension of time within which to file a Tax Return) or (J) change the tax classification of any of the Company Entities; (xiii) commence, settle, pay, discharge, compromise, waive or release any Action relating to the Business or involving the ownership of the Company Entities which would, or would be reasonably likely to, result in (A) injunctive relief or (B) a payment in excess of $1,000,000 payable by the Company Entities or Buyer following the Closing; (xiv) adopt a plan or agreement of complete or partial liquidation, dissolution, merger, restructuring, recapitalization or other material reorganization; (xv) commit to incur any capital expenditures, or any obligations or liabilities in connection therewith or fail to make or delay any capital expenditures other than in the ordinary course of business consistent with past practice; (bxvi) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable except in the ordinary course case of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets a seasonal build-up in the ordinary course of business consistent with past practice, increase, accelerate or otherwise engage in any stockpiling or excess purchasing activity with respect to inventory, supplies or raw materials; (ixvii) not (i) exclusively licensesell, assign assign, transfer, or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) otherwise dispose of, grant or impose any Liens on, license, abandon, dedicate to the public, or permit allow to lapse or expire (other than the expiration of patents in accordance with their maximum statutory term) any rights in or to any Purchased Business material Intellectual Property owned by a Company Entity or any Purchased Business Technologymaterial Intellectual Property constituting a Transferred Asset; (jxviii) not grant disclose to any allowances third party (other than the Buyer, its Affiliates or discounts on Products outside their respective Representatives) (A) any Trade Secrets related to the Business or (B) other Confidential Information (other than pursuant to a written confidentiality agreement entered into in the ordinary course of business with reasonable protections of, and preserving all rights of the Company Entities in, such Confidential Information), except for information disclosed, to the extent reasonably necessary, in connection with the exercise of any remedies provided in this Agreement or sell Inventory in excess any Transaction Document or any proceeding related to this Agreement or any Transaction Document or the enforcement of consumption consistent with past practices rights hereunder or thereunder or otherwise in the ordinary course of business;; or (kxix) not manufacture, commit or enter into any purchase commitments agree to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew do any of the material Permits related to the Business;foregoing. (mc) From and after the Effective Time through the consummation of the Closing, Sellers shall cause the Company Entities and Business not amend, modify, cancel to (i) pay or terminate otherwise remit or distribute any Assigned Contract Closing Cash (other than terminations payments or expirations at the end of the stated term after the date hereofdistributions to other Company Entities);, (ii) incur any Indebtedness or (iii) incur or become obligated to pay any Seller Transaction Expenses. (nd) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable Prior to the Business andClosing, promptly following receipt thereofSellers shall exercise, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply consistent with the terms and conditions of this Agreement, control and supervision of the Agreement, including this Section 7.1. Nothing contained herein Company Entities and the Business and shall give Purchaser, directly or indirectly, the right to at all times exercise complete control or direct the operations and supervision of Seller prior to Closingall of its other businesses and operations.

Appears in 1 contract

Samples: Purchase and Sale Agreement (Israel Chemicals LTD)

Conduct of the Business. From (a) During the period from the date of this PR Purchase Agreement until through the PR Closing (Date or until the earlier termination of this PR Purchase Agreement in accordance with pursuant to Section 11.1)9.1, except as expressly (i) otherwise contemplated by the Transaction Documents, (ii) required by applicable Law, as set forth on Schedule 7.1 (iii) Previously Disclosed or (iv) otherwise authorized by the prior written consent of Purchaser, which consent, in the Seller Disclosure Schedulecase of clauses (3) through (11) below, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallshall not, and shall cause its Affiliates not to: (a1) operate and carry on fail to use its reasonable best efforts to administer the Business Purchased Assets or administer the Assumed Liabilities in the ordinary course of business consistent with past practice; (b2) fail to use commercially reasonable best efforts to preserve intact the goodwill of the Business and the maintain its relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessBranch Customers; (c3) continue to maintain the Booksrenew, Records and Files of Seller and its Affiliates exclusively amend in any material respect or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking terminate any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased AssetsAssumed Contract, other than the sale of Inventory and other dispositions of assets when such actions are made in the ordinary course of business consistent with past practicepractice on terms that do not impose any additional material obligations on Seller, or following the PR Closing, Purchaser; (i4) not (i) exclusively licensesell, assign transfer, mortgage, encumber or transfer otherwise dispose of any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business TechnologyAssets; (j5) not grant subject any allowances or discounts on Products outside of the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businessPurchased Assets to a Lien; (k6) not manufacturematerially change the underwriting standards or risk management policies used by the PR Branch, other than changes implemented on a bank-wide basis or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of businesswithin Seller’s international banking division; (l7) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any except as permitted by Section 4.24 of the SPA with respect to any Specified Action, pay, discharge, settle or compromise any Action if such payment, discharge, settlement or compromise would reasonably be expected to impose any material Permits related to obligation or liability on the Business; (m) not amendPurchased Assets or the Assumed Liabilities, modify, cancel or terminate any Assigned Contract (other than terminations any payments, discharges, settlements or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except compromises in the ordinary course of business consistent with past practicepractice that do not involve (i) equitable relief or (ii) monetary damages or settlement amounts in an amount that exceeds (1) $1,000,000 in the aggregate for all such Actions or (2) with respect to any individual Action, the amount of any specific reserves with respect to such Action as of December 31, 2018 by more than $100,000; (p) comply 8) other than in all material respects the ordinary course of business consistent with all Laws past practice or as determined to be necessary or advisable by Seller in the reasonable bona fide exercise of its discretion based on changes in market conditions applicable to the Business andPR Branch, promptly following receipt thereofmaterially alter its interest rate, give credit policies or fee pricing policies or practices with respect to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay Assumed Deposits and the ClosingPurchased Loans; provided, however, except as expressly that Seller shall be permitted to take such actions with respect to the Assumed Deposits to the extent reasonably deemed necessary to preserve the mix, type and aggregate amount of the Assumed Deposits; (9) to the extent related to the PR Branch, the Purchased Assets or the Assumed Liabilities, make or rescind any material election relating to income Taxes or adopt or change any method of accounting in respect of income Taxes (other than any elections or changes in accounting method made by Seller on a firm-wide basis that do not increase the Taxes of Purchaser, of or with respect to the PR Branch, or with respect to the Purchased Assets or the Assumed Liabilities, and provided that Seller uses reasonable best efforts to minimize the applicability of any such changes to the PR Branch, the Purchased Assets and the Assumed Liabilities); (10) make any new Extension of Credit that would be booked at the PR Branch and become a Purchased Loan that is (i) in this Section 7.1excess of $1,000,000, (ii) not in the ordinary course of business consistent with past practice or (iii) inconsistent with Seller’s underwriting guidelines applicable to the PR Branch, a true, correct and complete copy of which have been made available to Purchaser; provided that Seller shall transmit any written request for a consent to make any new Extension or Credit (or a renewal) that is not covered by an exception above by e-mail to Purchaser’s Chief Credit Officer that shall state the principal amount of such proposed Extension of Credit and attach the loan package (with redactions of borrower names if deemed appropriate), and if Purchaser does not respond to such request for consent within forty-eight (48) hours after delivery of such e-mail, then Seller may make such Extension of Credit (including such renewal); provided, further that nothing in this Section 7.1 clause (10) shall prohibit prevent Seller or its Affiliates from conducting their businesses, including renewing any existing Extension of Credit in the Business, in their reasonable discretion provided it shall comply with ordinary course of business if such renewal only extends the maturity date of such Extension of Credit and does not otherwise alter the terms of the Extension of Credit; provided, further that Purchaser acknowledges and agrees to treat the information provided to Purchaser pursuant to this clause (10) confidentially and not use such information in any of Purchaser’s own business or underwriting activities; or (11) agree to do any of the foregoing. (b) Notwithstanding anything to the contrary in this PR Purchase Agreement, including (1) nothing in this Section 7.1. Nothing contained herein PR Purchase Agreement shall be construed to give Purchaser, directly or indirectly, the right rights to control or direct the operations of Seller the PR Branch prior to the PR Closing; and (2) prior to the PR Closing, Seller shall exercise, consistent with the terms of this PR Purchase Agreement, complete control and supervision over the operations of the PR Branch.

Appears in 1 contract

Samples: Sale and Purchase Agreement (Ofg Bancorp)

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except (x) as expressly required by applicable Lawlaw or as otherwise expressly permitted or contemplated by this Agreement, (y) as set forth on Schedule 7.1 in Section 2.8 or 4.1 of the Seller Disclosure Schedule, as contemplated by Letter or required to implement this Agreement or any Ancillary Agreement, or as (z) otherwise waived requested or consented to in writing by Purchaser (Buyer, which consent shall not be unreasonably withheldconditioned, conditioned withheld or delayed)delayed and which consent shall be deemed to have been given if Buyer fails to respond to a written request for such consent within seven (7) Business Days after the date of such request, Seller shall: (a) operate and carry on the Business in the ordinary course of business consistent with past practice; (b) shall use commercially reasonable efforts to preserve intact the its business organizations and maintain material relationships (contractual or otherwise) and goodwill with policyholders, regulators, suppliers and service providers of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller Company Group and its Affiliates exclusively or primarily related business and to cause the Company Group to conduct the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course and Seller shall not and shall not permit any member of businessthe Company Group to: (a) amend the certificate of incorporation or certificate of formation of any member of the Company Group, subject as applicable, or the by-laws or limited liability company operating agreement of any member of the Company Group, as applicable, or take or authorize any action to the Seller’s ability to pursue in good faith any bona fide disputeswind up its affairs or dissolve; (hb) not sell(i) amend or terminate any Seller Benefit Plan (including any Company Benefit Plan) in any material respect, leaseestablish, licenseenter into or adopt any new arrangement that would (if it were in effect on the date hereof) constitute a Seller Benefit Plan or a Company Benefit Plan, transfertake any action that would result in a Seller Benefit Plan becoming in whole or part a Company Benefit Plan or vice versa, abandonor take any action with respect to any Seller Benefit Plan (including any Company Benefit Plan) that would reasonably be expected to increase, pledgeaccelerate or alter the liabilities of any Company Benefit Plan or reduce or impair the assets of any Company Benefit Plan, encumber (other than Permitted Encumbrances)ii) take any action to increase, fail to maintain accelerate the payment or vesting of, or fund or otherwise dispose guarantee, freeze or secure the payment of compensation or benefits of any Purchased AssetsBusiness Employee, other than the sale of Inventory and other dispositions of assets than, in each case, in the ordinary course of business in a manner consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant applicable internal policies of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including or to the Business, extent required under any Seller Benefit Plan or other contractual arrangement as in their reasonable discretion provided it shall comply with effect on the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.date hereof,

Appears in 1 contract

Samples: Stock Purchase Agreement

Conduct of the Business. From (a) During the period from the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with pursuant to Section 11.1)7.01 hereof, except as expressly required by applicable Law, as set forth on the attached Conduct of Business Schedule 7.1 or with the prior written consent of Parent, the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Company shall (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (ai) operate and carry on the Business in the its business according to its ordinary course of business consistent with past practice; and substantially in the same manner as heretofore conducted; provided that, the foregoing notwithstanding, the Company may use all available cash to repay any Indebtedness or Holder Transaction Expenses prior to Closing or to issue dividends, (bii) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with protect its customersmaterial assets, vendorsproperties, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business organization (including all Registered IP) in a timely manner, key officers and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrancesemployees), fail goodwill and business relationships, (iii) cause all transactions with third parties to take place on arm’s length terms, (iv) maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts insurance coverage on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current such terms and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after such amounts substantially as maintained on the date hereof); , and (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pv) comply in all material respects with all Laws applicable to the Business andLaws, promptly following receipt thereoforders, give to the Purchaser copies codes, licenses, regulations and ordinances of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andBody. (qb) During the period from the date of this Agreement until the Closing or the earlier termination of this Agreement pursuant to Section 7.01 hereof, except as otherwise expressly provided for by this Agreement or consented to in writing by Parent, which consent will not take be unreasonably withheld, the Company shall not, (i) other than the borrowing of amounts pursuant to any credit facility of the Company existing as of the date hereof, incur or commit to incur any material actions that Indebtedness, (ii) except as required by Law, engage in any other activity which could reasonably be expected to delay impair the Closingability of Parent, the Merger Sub or the Company to consummate the Merger, (iii) declare or pay any dividend or other distribution of the assets of the Company except for cash dividends; (iv) hire or terminate any officers or key employees of the Company; or (v) take any action or refrain from taking any action that, if taken or not taken prior to the date hereof, would be required to disclosed pursuant to Section 3.07 or under Section 3.13(i); provided, however, except as expressly provided that in the event of any conflict between Section 3.07 and this Section 7.15.01(b), nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein 5.01(b) shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingprevail.

Appears in 1 contract

Samples: Merger Agreement (Tornier N.V.)

Conduct of the Business. From Pending Closing. Between the --------------------------------------- date of this Agreement until hereof and the Closing (or until hereunder the earlier termination of this Agreement in accordance with Section 11.1)Company shall, except as expressly required by applicable Law, as set forth on Schedule 7.1 of and the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent Shareholders shall not be unreasonably withheld, conditioned or delayed), Seller shallcause the Company to: (a) operate except as otherwise permitted by this Agreement, not take or suffer or permit any action which would render materially untrue any of the representations or warranties of the Shareholders and carry on the Business in Company herein contained, and not omit to take any action, the ordinary course omission of business consistent with past practicewhich would render materially untrue any such representation or warranty; (b) use commercially reasonable efforts to preserve intact except as permitted by this Agreement, conduct its business in a good and diligent manner in the goodwill of ordinary and usual course (except the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessCompany may stop offering Pay Day Loans and/or Consumer Loans); (c) continue not enter into any contract, agreement, commitment or arrangement with any party, other than contracts for the provision of services and contracts for the purchase of materials and supplies in the ordinary and usual course of business, and except as may be required to maintain comply with the Booksterms hereof, Records and Files not amend, modify or terminate any Real Property Lease, Personal Property Lease or Material Contract without the prior written consent of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; andPurchaser; (d) continue use their best efforts to make all necessary and material filings and payments with Governmental Authorities in connection preserve the Company s business organization intact, except as may be required to comply with the Business (including all Registered IP) in a timely mannerterms hereof, to keep available the services of its employees, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedpreserve its relationships with customers, suppliers and others with whom it deals; (e) perform all not reveal, orally or in writing, to any party, other than the Purchaser and the Purchaser s authorized agents, any of Seller’s material obligations under the Assigned Contracts business procedures and practices, intellectual property or trade secrets followed or utilized by the Company in accordance with the terms thereofconduct of its business; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; maintain in full force and refrain from consenting to any extension or waiver effect all of the limitation period applicable to insurance policies listed on Schedule 4.21 and make no change in any claim or assessment with respect to Taxes; in each case to insurance coverage without the extent taking such action would adversely affect prior written consent of the Purchased Assets or the Business in a Post-Closing Tax PeriodPurchaser; (g) pay keep the premises occupied by the Company and discharge all material Liabilities related to of the Purchased Assets as they become due Company s equipment and payable in the ordinary course of business, subject to the Seller’s ability to pursue other tangible personal property in good faith any bona fide disputesorder and repair and perform all necessary repairs and maintenance; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail continue to maintain or otherwise dispose all of any Purchased Assets, other than the sale Company s usual business books and records in accordance with its past practices and not change its method of Inventory and other dispositions of assets in the ordinary course of business consistent with past practiceaccounting; (i) not (i) exclusively license, assign or transfer issue any Purchased Business Intellectual Property capital stock or any Purchased Business Technology to any Person (including any current option, warrant or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technologyright relating thereto; (j) not grant waive any allowances right or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businesscancel any claim; (k) except as disclosed on Schedule 4.10, not manufacture, increase the compensation or enter into rate of compensation payable to any purchase commitments to purchase, Inventory in amounts outside of the ordinary course Company s employees without the prior written consent of businessthe Purchaser; (l) use commercially reasonable efforts maintain the Company s corporate existence and not fail to keep current and in full force and effect merge or renew consolidate the Company with any of the material Permits related to the Businessother entity; (m) not amendexcept as may be required to comply with the terms hereof, modifycomply with all provisions of all Real Property Leases, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof)Personal Property Leases and Material Contracts and all applicable laws, rules and regulations; (n) except as described on Schedule 4.10, not waive, release, assign or modify make any material benefit or claim under any Assigned Contractcapital expenditure; (o) not grant any Business Employee any increase in compensation amend its articles of incorporation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practicebylaws; (p) comply in all material respects with all Laws applicable not agree to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Lawsdo anything prohibited by this Section 6.2; and (q) not take make any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided Tax election or settle or compromise any Tax liability for an amount materially in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms excess of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, liability therefor that is reflected in the right to control or direct the operations of Seller prior to ClosingFinancial Statements.

Appears in 1 contract

Samples: Stock Purchase Agreement (Manor Investment Co Inc)

Conduct of the Business. From the date of this Agreement until the Closing (or Effective Date until the earlier of the Closing Date or the termination of this Agreement in accordance with pursuant to Section 11.1)6.01, except as expressly required by applicable Law, as set forth on in Schedule 7.1 of the Seller Disclosure Schedule, as contemplated 5.01 or otherwise provided for by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on shall use its commercially reasonable efforts to conduct the Business in the ordinary course of business consistent with past practice;; provided that, the foregoing notwithstanding, Seller may use or distribute all Cash prior to the Closing for any purpose. Without limiting the foregoing, from the date hereof until the Closing Date, Seller shall: (ba) use commercially reasonable efforts to maintain and preserve intact the goodwill current organization, business and franchise of the Business and to preserve the goodwill and relationships of Seller with its the employees, customers, vendors, suppliers, Business Employees and others having business relations with regulators of the Business; (b) preserve and maintain all of the Permits used in the Business, including the Mining Permits; (c) continue cause the Tangible Personal Property to maintain be maintained in substantially the Bookssame condition, Records in the aggregate, as it was on the date of this Agreement, subject to reasonable wear and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; andtear; (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) fulfill any orders for coal from customers in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedmanner that is consistent with past practices; (e) perform perform, in all material respects, all of Seller’s material its obligations under all Contracts relating to the Assigned Contracts in accordance with the terms thereofBusiness; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect maintain its books and records related to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodaccordance with past practice; (g) pay and discharge comply in all material Liabilities related respects with all applicable Laws with respect to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputesBusiness; (h) not sellrefrain from subjecting any material portion of the Purchased Assets to any Lien, leaseexcept for Permitted Liens; (i) refrain from entering into, licenseamending waving any material right with respect to, transferor terminating (excluding, abandonfor the avoidance of doubt, pledgeby permitting expiration in accordance with its terms) (A) any Material Contract, encumber DCS Contract or Lease (other than Permitted Encumbrancesor any contract which would, if it were in existence on the date hereof, be required to be set forth as a Material Contract or Lease), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); practice and (iiB) dispose ofany contract set forth on Schedule 5.01(i) hereto, abandonprovided that nothing in this Section 5.01(i) shall restrict the exercise by Seller of its contractual remedies under any Material Contract, DCS Contract or permit to lapse any rights in Lease for breach or to any Purchased Business Intellectual Property or any Purchased Business Technologydefault by a counterparty thereto; (j) not grant any allowances or discounts on Products outside maintain the ordinary course of business or sell Inventory Real Property in excess of consumption a manner and consistent with past practices in its current practices, provided that Seller shall not be responsible for any capital improvements or repairs to the ordinary course Real Property, except as required by any Lease or other Contract with respect thereto, and not transfer, sell, mortgage, pledge, encumber, or otherwise dispose of business;the Real Property, or any portion thereof; and (k) not manufactureimplement or effect any material reduction in labor force or lay-off, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which as Seller determines may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except reasonably required in the ordinary course of its sole business consistent with past practice; (p) comply in all material respects with all Laws applicable judgment after giving notice to the Buyer at least 2 Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller Days prior to Closingimplementation thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Peabody Energy Corp)

Conduct of the Business. From During the period from the date of this Agreement hereof until the Applicable Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Agreement, except (a) as expressly contemplated or required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or (b) as otherwise waived or consented to in writing by Purchaser (the Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed), (c) as set forth in Section 5.1 of the Disclosure Schedules or (d) as required by applicable Law, the Seller shall, and shall cause the Seller Group (x) to conduct the Business in all material respects in the ordinary course of business and use commercially reasonable efforts to preserve intact the Business and (y) not to, to the extent relating to the Business: (ai) operate amend the organizational documents of any Transferred Entity or (only insofar as such amendment would materially adversely affect the Business) any member of the Seller Group or subject any Transferred Entity to any bankruptcy, receivership, insolvency or similar proceedings; (ii) (A) issue, sell, pledge, transfer, dispose of or encumber, or authorize or propose the issuance, sale, pledge, transfer, disposal or encumbrance of, any Transferred Equity Interests or equity interests convertible into or exchangeable for any other equity interests of any Transferred Entity or any direct or indirect rights in respect of the equity interests of any Transferred Entity or (B) reclassify, combine, split, subdivide, redeem or purchase or otherwise acquire, directly or indirectly, any of the outstanding equity interests of any Transferred Entity; (iii) (A) make or grant any wage or salary or other compensation or benefit increase to any Business Employee or make any increase in the payments of benefits, including severance and carry on termination benefits, to any Business Employee, in each case, other than (w) in the ordinary course of business and consistent with past practice to Business Employees (other than Business Employees in Band G or greater), with such increases not to exceed 2% of the aggregate costs of such amounts (including annual grants of equity awards and annual cash bonuses under the Pitney Xxxxx Incentive Plan), (x) as required by existing agreements, commitments or benefit plans, (y) as required by Law or (z) pursuant to changes to a Business Benefit Plan, that is not an Assumed Benefit Plan, applicable to all employees of the Seller, (B) adopt, terminate or materially amend any plan that would be an Assumed Benefit Plan or (C) (1) terminate any employee in Band E or above (other than for cause), or transfer any Business Employee out of the Business or (2) hire or transfer into the Business any would-be Business Employee; (iv) (A) enter into any Contract that would be a Material Contract if entered into prior to the date hereof, or materially amend, modify, supplement or consent to the termination of or terminate any Material Contract, in each case, excluding (x) any new Contracts or modifications, supplements or amendments to existing Contracts entered into with customers or vendors of the Business (including Contracts of the type described in subsections (iv) and (v) of Section 3.15(a)) in the ordinary course of business, (y) Intellectual Property licenses entered into in the ordinary course of business or (z) lease extensions or similar amendments to leases (including the Transferred Real Property Leases or the prime leases to which the Real Property Subleases are subject) entered into in the ordinary course of business, (B) waive or release any material rights under such Material Contracts other than in the ordinary course of business or (C) enter into any Contract of the type set forth in Section 3.15(a)(i); (v) enter into or consummate any transaction involving the acquisition by the Transferred Entities of the business, stock or substantially all of the assets of any other Person, by merger or consolidation, purchase of substantially all of the assets or equity interests, or by any other manner, in a single transaction or a series of related transactions (other than capital expenditures identified in a capital expenditures budget previously provided to the Purchaser); (vi) sell, transfer, license, pledge, mortgage, encumber, abandon, dispose of or otherwise subject to any Encumbrance (other than Permitted Encumbrances) any of the Transferred Equity Interests or the Transferred Assets, other than (A) non-exclusive Intellectual Property licenses granted in the ordinary course of business; (B) obsolete or worn out equipment sold, disposed or transferred or non-material Intellectual Property abandoned, in each case, in the ordinary course of business consistent with past practice; or (C) pursuant to Contracts in force as of the date hereof; (bvii) use commercially reasonable efforts make any material change in (A) any method of accounting or auditing practice with respect to preserve intact the goodwill of the Business and other than those required by GAAP, (B) the relationships policies, procedures or practices relating to credit collection or payment (including any acceleration in the collection of Seller with any receivables or delay in the payment of payables) or (C) its customers, vendors, suppliers, Business Employees and others having business relations with privacy policies or security of its IT Assets in any manner that is materially adverse to the Business, in each case, except as required by Law; (cviii) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable other than in the ordinary course of business, subject make any loans, advances or capital contributions to, or investments in, any other Person (in each case, other than as would be discharged, assumed, or canceled on or prior to the Seller’s ability to pursue in good faith any bona fide disputesApplicable Closing); (hix) not selldeclare, leaseauthorize, licensemake or pay any dividend or other distribution (payable in stock, transferproperty or otherwise) with respect to the equity interests of a Transferred Entity, abandonexcept for lawful Cash dividends and distributions paid in their entirety prior to the Principal Closing Date, pledgeany dividends or distributions payable to a Transferred Entity, encumber or any lawful dividends or distributions consisting solely of Excluded Assets; (x) with regard to any Transferred Entity, (A) issue any note, bond, or other debt security, or create, incur, assume or guarantee any Indebtedness or any material capitalized lease obligation other than intercompany debt that will be paid, settled, forgiven, canceled or extinguished as of the Principal Closing, (B) make any payments in respect of Indebtedness owed by such Transferred Entity to any third party, (C) payoff, redeem, repay or otherwise retire for value any Indebtedness or (D) pay any Transaction Expenses, in each of the case of clauses (B), (C) and (D), such restrictions shall apply only on the Principal Closing Date and only with respect to payments utilizing Cash of such Transferred Entity; (xi) initiate, settle, compromise or discharge any Action (other than Permitted EncumbrancesTax Actions, which are governed by Section 5.1(xv)), fail to maintain settlements or otherwise dispose compromises involving solely money damages (and not equitable remedies) not in excess of $1,000,000 in the aggregate; (xii) enter into any Purchased AssetsAffiliate Agreement, or materially amend or modify or terminate any existing Affiliate Agreement, other than the sale entry into, amendments or modifications of, or terminations of Inventory and other dispositions of assets Affiliate Agreements (x) in the ordinary course of business consistent with past practiceand on arm’s-length terms or (y) that will terminate at or prior to the Applicable Closing Date, provided, however, the Seller may terminate any existing Affiliate Agreements to the extent required pursuant to this Agreement; (ixiii) not (i) exclusively licenseadopt or effect a plan of complete or partial liquidation, assign dissolution, merger, consolidation, restructuring, recapitalization or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside other reorganization involving the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract Transferred Entities (other than terminations or expirations at the end of the stated term after the date hereofReorganization); (nxiv) not waive, release, assign or modify recognize any material benefit or claim under any Assigned Contract; (o) not grant Employee Representative as the representative of any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination payEmployees, or enter into any new employment, deferred compensation or similar agreement with any such employee (amended Labor Contract except for any retention bonus plan which may be mutually agreed between Seller and Purchaseras required by applicable Law or pursuant to the Seller’s obligations under Section 5.10(q), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pxv) comply (A) make, change or revoke any entity classification election or other material Tax election, (B) change any annual accounting period, (C) change or adopt any material method of Tax accounting, (D) request any ruling from any Taxing Authority, (E) amend any material Tax Return, (F) surrender any right to claim a material refund of Taxes, (G) settle or compromise any claim, assessment or dispute with respect to a material amount of Taxes, (H) enter into any closing agreement as described in all Section 7121 of the Code (or any similar provision of state, local or non-U.S. Law) with a Taxing Authority, or (I) consent to any extension or waiver of any statute of limitations regarding the assessment or collection of any material respects Tax, in each case other than with all Laws applicable respect to any Seller Consolidated Group; or (xvi) authorize, commit or agree to take any of the foregoing actions in respect of which it is restricted by the provisions of this Section 5.1. Notwithstanding anything in this Agreement to the Business andcontrary, promptly following receipt thereof, give the Purchaser acknowledges and agrees that prior to the Purchaser copies Principal Closing Date (but not, for the avoidance of doubt, on the Principal Closing Date), (A) the Seller may (but shall have no obligations to) cause any notice received from Transferred Entity to distribute its cash and cash equivalents to the Seller or any Governmental Authority of its Affiliates (it being understood that any cash or other Person alleging cash equivalents not so distributed and held by such Transferred Entity shall be included in calculation of Closing Cash) and (B) the Seller and/or any violation of its Affiliates may consummate the Reorganization and terminate any such Laws; and (q) not take any material actions that could reasonably be expected intercompany contracts or intercompany Indebtedness pursuant to delay Section 5.12. For the Closing; providedavoidance of doubt, however, except as expressly provided nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including Agreement is intended to give the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller Group’s business, including, prior to the Applicable Closing, the Business. Prior to the Applicable Closing, the Seller Group shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over its businesses and operations.

Appears in 1 contract

Samples: Stock and Asset Purchase Agreement (Pitney Bowes Inc /De/)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except a) Except as expressly required or permitted by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, required by Requirements of Law or as otherwise waived or consented to in writing by Purchaser Coty US (which such consent shall not to be unreasonably withheld, conditioned or delayed), Seller shallX. Xxxxxxxx covenants and agrees that, from the date hereof until the Closing, he shall cause the Company and each of its Subsidiaries to, and the Company agrees that it shall and shall cause each of its Subsidiaries to, operate and carry on, the business and operations of the Company and its Subsidiaries only in the ordinary course and consistent in all material respects with past practices. Consistent with the foregoing, except as expressly required or permitted by this Agreement or by Requirements of Law or as consented to in writing by Coty (such consent not to be unreasonably withheld, conditioned or delayed), from the date hereof until the Closing, X. Xxxxxxxx shall cause the Company and each of its Subsidiaries to, and the Company shall and shall cause each of its Subsidiaries to, use commercially reasonable efforts consistent with past practice to keep and maintain the assets of the Company and its Subsidiaries in good operating condition and repair and use their respective commercially reasonable efforts to maintain the business organization of the Company and its Subsidiaries intact, preserve the business operations of the Company and its Subsidiaries and to preserve the goodwill of the suppliers, licensors, employees, independent contractors, customers, Presenters, distributors and others having business relations with the Company or any of its Subsidiaries. (b) Notwithstanding Section 5.1(a), except as expressly required or permitted by this Agreement or required by Requirements of Law or except as set forth on Schedule 5.1(b) or as consented to in writing by Coty (such consent not to be unreasonably withheld, conditioned or delayed), between the date hereof and the Closing, X. Xxxxxxxx shall cause the Company and each of its Subsidiaries not to, and the Company agrees that it shall not and shall cause its Subsidiaries to not prior to the Closing: (ai) operate amend any of the Organizational Documents of the Company or any of its Subsidiaries; (ii) issue, sell or transfer any Equity Securities of the Company or any of its Subsidiaries or any options, warrants, calls, rights (including preemptive rights) or commitments of any character relating to the issuance, sale, transfer, purchase or redemption of any of the Equity Securities of the Company or any of its Subsidiaries; (iii) reclassify, combine, split, subdivide or redeem, or purchase or otherwise acquire, directly or indirectly, any Equity Securities of the Company or any of its Subsidiaries, or make any other change with respect to their capital structures; (iv) adopt a plan of complete or partial liquidation, or authorize or undertake a dissolution, consolidation, restructuring, recapitalization or other reorganization; (v) declare, set aside, make or pay any dividends or other distributions (whether in cash, stock, property or otherwise) with respect to any of the Equity Securities of the Company or any of its Subsidiaries (other than to a Company or any wholly-owned Subsidiary of the Company); provided, that the Company and carry on its Subsidiaries may declare, set aside, make or pay cash dividends and cash distributions so long as the Business aggregate cash in the Company and its Subsidiaries equals or exceeds $10,000,000, as of the Closing; (vi) amend, modify or terminate any Material Contract, or enter into any Contract that would be considered a Material Contract if in effect as of the date hereof, in each case other than in the ordinary course of business consistent with past practices in respect of any Contract that constitutes a Material Contract, or would constitute a Material Contract if in effect as of the date hereof, pursuant to Section 3.14(a)(viii), 3.14(a)(x), 3.14(a)(xi), 3.14(a)(xii) or 3.14(a)(xiii) (so long as (A) in the case of a modification or amendment to such a Material Contract in effect as of the date hereof, such modification or amendment does not modify or amend in a manner adverse to the Company any provisions that would make it a Material Contract under Section 3.14(a)(iv) and (B) in the case of the entry into a Contract, such Contract does not contain any provisions described in Section 3.14(a)(iv)); (vii) (A) sell, lease, license, exchange, transfer, assign or otherwise dispose of any assets having a value in excess of $250,000 individually or in the aggregate, or impose or suffer to exist any Encumbrance upon any such assets (other than Permitted Encumbrances), of the Company or any of its Subsidiaries, in each case except for sales of inventory in the ordinary course of business consistent with past practice or (B) sell, lease, license, exchange, transfer, assign or otherwise dispose of, or mortgage, pledge or otherwise subject to an Encumbrance (other than Permitted Encumbrances) or permit to lapse, any material Owned Intellectual Property, other than expirations in accordance with respective statutory terms; (viii) develop or implement discount or promotion activities outside of those offered in the ordinary course of business consistent with past practice; (bix) use commercially reasonable efforts to preserve intact merge with, enter into a consolidation agreement with or acquire the goodwill Equity Securities of any Person, or acquire any substantial portion of the Business and the relationships assets or business of Seller any Person, or otherwise acquire any assets with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files a value in excess of Seller and its Affiliates exclusively $250,000 individually or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assetsaggregate, other than the sale of Inventory and other dispositions acquisitions of assets in the ordinary course of business consistent with past practice; (ix) not (i) exclusively license, assign cancel or transfer compromise any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); Indebtedness other than for fair value and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (kxi) not manufacturecommence or settle any action, suit, proceeding or enter into any purchase commitments to purchaseinvestigation, Inventory other than such settlements in amounts outside the ordinary course of businessbusiness that (A) are only for money damages of less than $250,000 individually and $1,000,000 in the aggregate, (B) include a full release of the Company and its Affiliates and (C) do not include any admission of wrong-doing; (lxii) use commercially reasonable efforts not fail to keep current and in full force and effect or renew incur any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (Indebtedness for borrowed money other than terminations or expirations at draws on the end of the stated term after the date hereof); (nCompany’s credit facilities described in Schedule 5.1(b)(xii) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pxiii) comply in all material respects with all Laws applicable terminate any insurance policy maintained by the Company or its Subsidiaries and pertaining to the Business andassets, promptly following receipt thereofoperations or employees of the Company, give any of its Subsidiaries or the Business; (xiv) permit any Permit to be cancelled or lapse; (xv) make any capital expenditure or commitment for any capital expenditure other than (A) capital expenditures in the amounts contemplated by the budget provided by the Company to Coty prior to the Purchaser copies date hereof, (B) capital expenditures in the ordinary course of business not in excess of $200,000 in the aggregate, and (C) purchases of inventory in the ordinary course of business; (xvi) adopt, enter into, modify or terminate any Company Benefit Plan (or any arrangement that would be a Company Benefit Plan if in effect as of the date hereof) other than modifications in the ordinary course of business consistent with past practice that do not increase (other than immaterial increases) the amount of compensation or benefits to any employee of the Company or any of its Subsidiaries or otherwise increase (other than immaterial increases) the costs of such Company Benefit Plans to the Company and its Subsidiaries; (xvii) modify the compensation or benefits of any notice received from employee or independent contractor of the Company or any Governmental Authority of its Subsidiaries (including through the exercise of discretion under any Company Benefit Plan), other than as expressly permitted or contemplated by this Agreement, required by the terms of a Company Benefit Plan or in the ordinary course of business consistent with past practice to the extent such modifications do not result in any increase in costs (other Person alleging than immaterial increases in the aggregate) to the Company and its Subsidiaries; (xviii) recognize any violation labor union or enter into or modify any Collective Bargaining Agreement, other than as required by law; (xix) terminate without cause the employment of any such Laws; andofficer or employee, or any engagement with any independent contractor, of the Company or any of its Subsidiaries who is paid more than $250,000 on an annual basis, or remove any director; (qxx) not except as otherwise required by applicable Requirements of Law, make any material election, or adopt any material accounting method on any Tax Return that is inconsistent with elections made or accounting methods used in preparing or filing similar Tax Returns in prior periods (including elections or accounting methods that would have the effect of deferring income to periods ending after the Closing Date or accelerating deductions to periods ending on or before the Closing Date to the extent such election or method is inconsistent with elections made or methods used in preparing or filing similar Tax Returns in prior periods); (xxi) settle or otherwise compromise any material claim relating to Taxes other than the payment of Taxes owed in the ordinary course of business consistent with past practice, enter into any closing agreement or similar agreement relating to Taxes, otherwise settle any dispute relating to Taxes, or request any ruling or similar guidance with respect to Taxes; (xxii) make any material change in any method of accounting other than changes required by GAAP or applicable Requirements of Law; or (xxiii) enter into any agreement to take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided specified in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing5.1(b).

Appears in 1 contract

Samples: Contribution Agreement (Coty Inc.)

Conduct of the Business. (a) From the date of this Agreement until the earlier of the Closing (or until Date and the earlier termination of this Agreement in accordance with Section 11.1), (except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement otherwise provided in this Agreement or any Ancillary Agreementas TDCC or HSB, or as otherwise waived or consented to the case may be, may consent in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayedwriting), Seller shallTDCC and DEI shall cause the Contributed Business of DEI, and HSB and Radian shall cause the Contributed Business of Radian, to be conducted in the ordinary course of business consistent with past practice and shall use their commercially reasonable efforts to: (ai) operate preserve intact the business organizations and carry on relationships with third parties relating to such Contributed Business; (ii) keep available the services of the present employees connected with such Contributed Business; (iii) continue making marketing, advertising, promotional, and other similar expenditures relating to such Contributed Business in the ordinary course of business consistent with past practice; (biv) use commercially reasonable efforts duly comply in all material respects with all laws, regulations or ordinances, including without limitation all Environmental Laws, applicable to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the such Contributed Business; (cv) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect its Books and Records relating to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Contributed Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (ivi) not (i) exclusively license, assign or transfer any Purchased continue the maintenance and repair of the Contributed Assets relating to such Contributed Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant the making of Seller or any contractor or commercial partner of Seller); and (iischeduled capital expenditures) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices practice; (vii) maintain in effect insurance with respect to the Contributed Assets related to such Contributed Business in the ordinary course of business and against risks, with carriers and in amounts (including deductibles) consistent with past practice; (viii) maintain inventory and equipment related to such Contributed Business at levels consistent with past practice; and (ix) comply in all material respects with all material contracts relating to such Contributed Business. (b) Without limiting the generality of the foregoing, without the prior written consent of TDCC, in the case of Radian, or HSB, in the case of DEI, from the date of this Agreement until the Closing Date or the earlier termination of this Agreement, no Contributing Subsidiary will: (i) merge or consolidate with any other Person; (ii) acquire from any other Person, other than in the ordinary course of business, assets relating to its Contributed Business having a fair market value in excess of an aggregate of $1,000,000; (kiii) not manufacturesell, lease, license, pledge or enter into otherwise dispose of any purchase Contributed Assets except (i) pursuant to existing contracts or commitments to purchase, Inventory and (ii) in amounts outside the ordinary course of business;business consistent with past practice; or (liv) use commercially reasonable efforts not fail to keep current and in full force and effect or renew defer the payment of any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination payamounts, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate accelerate the employment collection of any such employee without causereceivables, except in the ordinary course of business consistent with past practice; (pv) comply in all create or suffer to exist any new Lien or encumbrance on any of its Contributed Assets, other than Permitted Liens; (vi) enter into any material respects with all Laws applicable contract or agreement (or, except for technical amendments to substitute the Business andname of Newco for the name of such party, promptly following receipt thereofany amendment, give to the Purchaser copies modification or waiver of any notice received from existing contract or agreement), that would be an Assumed Liability except in the ordinary course of business consistent with past practice; (vii) except in the ordinary course of business consistent with past practice, accept, receive or allow any Governmental Authority customer to make any prepayment related to its Contributed Business or its Assets; (viii) except in the ordinary course of business consistent with past practice, waive or release any right of value relating to its Contributed Assets or its Contributed Business; (ix) declare, set aside or pay any dividend or other Person alleging distribution (whether in cash or stock, or property or any violation combination thereof) in respect of any such Laws; andits capital stock; (qx) not take purchase any material actions that could reasonably be expected Derivative Financial Instrument; or (xi) agree or commit to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms do any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Contribution Agreement (Hartford Steam Boiler Inspection & Insurance Co)

Conduct of the Business. From the date of (a) The Sellers covenant and agree that, except (i) as otherwise expressly contemplated by this Agreement until (including as described in Schedule 7.1) and the Closing other Transaction Documents, (or until ii) for the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 effect of the Seller Disclosure Schedule, as announcement and consummation of the transactions contemplated by hereby or required to implement this Agreement thereby or any Ancillary Agreement, or (iii) as otherwise waived or consented to approved in writing by Purchaser Buyer (which consent approval shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on during the Interim Period, the Sellers shall cause the Company Business to be operated in the ordinary course Ordinary Course of business consistent with past practice;Business of Company, and shall use reasonable best efforts to preserve, maintain and protect the assets and properties of the Company Business; provided, that such efforts shall not include any requirement or obligation to make any payment or assume any liability not otherwise required to be paid or assumed by the terms of an existing Contract or offer or grant any financial accommodation or other benefit not otherwise required to be made by the terms of an existing Contract. (b) use commercially reasonable efforts In furtherance and not in limitation of Section 7.1(a), during the Interim Period, except (i). as otherwise expressly contemplated by this Agreement (including as described in Schedule 7.1) and the other Transaction Documents, (ii) as required by applicable Laws, or (iii) as otherwise approved in writing by Buyer (which approval shall not be unreasonably withheld, conditioned or delayed), the Sellers shall not, with respect to preserve intact the goodwill Company Business, take any of the Business and following actions: (i) amend the relationships Organizational Documents of Seller with Company or any of its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessSubsidiaries; (cii) continue authorize for issuance, issue, grant, sell, deliver, dispose of, pledge or otherwise encumber any capital stock of Company or any of its Subsidiaries, or grant any rights to maintain the Books, Records and Files subscribe for or acquire any capital stock of Seller and Company or any of its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedSubsidiaries; (eiii) perform all declare, set aside, make or pay any dividend or other distribution, in respect of Seller’s material obligations under the Assigned Contracts Company Membership Interests to the Sellers; (iv) increase the compensation, benefits or fringe benefits paid or payable (including wages, salaries, bonuses or any other remuneration) or to become payable to any employee or contractor of Company or any of its Subsidiaries except for increases (A) required in accordance with the terms thereofof any Plan in effect on the date hereof, or (B) required by applicable Laws; (fv) refrain from making(A) establish, changing adopt, or revoking enter into new, or amend or terminate any existing, Plan or any labor union or collective bargaining Contract, except to the extent required by applicable Laws, or (B) except as may be required by applicable Laws or pursuant to the terms of any Plan in effect on the date hereof, fund, or agree to fund, any compensation or benefits under any Plan with respect to any current or former employee or contractor of Company, including through a “rabbi” or similar trust; (vi) terminate the service relationship or employment, other than for cause, of any employee of Company or any of its Subsidiaries or any independent contractor providing services to Company or any of its Subsidiaries or with respect to the Company Business, or transfer the employment or service relationship of any such Person, or make any variation to the terms and conditions of engagement or employment of any such Person; (vii) hire any individual who would become an employee or contractor of Company or any of its Subsidiaries unless required to replace any employee or contractor whose employment or engagement is terminated as permitted hereunder (and only subject to terms comparable to those of the employee or contractor being replaced); (viii) sell, assign, transfer, convey, lease or otherwise dispose of any assets or properties of Company that are material, individually or in the aggregate, to the Company Business, taken as a whole, to any Person or encumber any such assets, in each case, other than in the Ordinary Course of Business of Company; (ix) except as required or permitted by GAAP, make any change in any method of accounting or auditing practice with respect to the Company Business; (x) pay, discharge, settle or satisfy any liabilities of Company, other than payments, discharges, settlements or satisfactions in the Ordinary Course of Business of Company to the extent that such payment, settlement, discharge or satisfaction would not increase the liabilities of Company by an aggregate amount in excess of $10,000; (xi) other than in the Ordinary Course of Business of Company, enter into any transaction that would result in liability to Company in excess of $10,000, individually or $25,000 in the aggregate; (xii) acquire any assets that would be material, individually or in the aggregate, to the Company Business, taken as a whole, except in the Ordinary Course of Business of Company; (xiii) except as contemplated by this Agreement, make or change any material Tax election; refrain from adopting election or changing method of accounting, settle any accounting method dispute or claim with respect to Taxes; refrain from filing , surrender any amended Tax Return; refrain from entering into any closing agreementright to claim a refund of Taxes, settling or compromising any Tax claim or assessment; and refrain from consenting consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment with respect to Taxes; in each case to assessment, or take any other action that would have the extent taking such action would adversely affect effect of increasing the Purchased Assets Tax liability of Company or any Subsidiary for any period after the Business in a Post-Closing Tax PeriodDate; (gxiv) pay and discharge acquire by merger or consolidation with, or merge or consolidate with, or purchase substantially all material Liabilities related to of the Purchased Assets as they become due and payable in the ordinary course of businessassets of, subject to the Seller’s ability to pursue in good faith any bona fide disputescorporation, partnership, association, joint venture or other business organization or division thereof; (hxv) not sellmake any material loans or material advances to any Person, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail except for advances to maintain employees or otherwise dispose officers of any Purchased Assets, other than the sale of Inventory and other dispositions of assets Company for expenses incurred in the ordinary course Ordinary Course of business consistent with past practiceBusiness of Company; (ixvi) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, make or enter into any purchase commitments to purchaseMaterial Contract, Inventory in amounts outside the ordinary course of business;or amend or terminate any existing Material Contract; or (lxvii) use commercially reasonable efforts not fail commit or agree to keep current and in full force and effect or renew do any of the material Permits related foregoing. (c) Notwithstanding the foregoing or anything in this Agreement to the Business; contrary, the Sellers may take (mor not take, as the case may be) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after actions described in Section 7.1(a) or Section 7.1(b) above if reasonably necessary under emergency circumstances (or as required pursuant to applicable Laws); provided, that the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment Sellers shall promptly provide notice of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable action to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingBuyer.

Appears in 1 contract

Samples: Membership Interest Purchase Agreement (New York Mortgage Trust Inc)

Conduct of the Business. From (a) During the period from the date of this Agreement and continuing until the Closing (or until and through the earlier of the termination of this Agreement in accordance with Section 11.1‎8 and the Closing (the “Pre-Closing Period”), Seller shall and shall cause its Affiliates to (except as to the extent expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Guarantor) use its commercially reasonable efforts to: (which consent i) carry on the Business in the usual regular and ordinary course in substantially the same manner as heretofore conducted, including complying with all material applicable Laws and complying with the Rehovot Facility Leases, and to pay or perform other obligations when due, (ii) preserve intact the present Business, keep available the services of the Identified Service Providers, keep and preserve the Cell Banks, the Cell Lines and the Acquired Assets and preserve the relationships of Seller and its Affiliates with landlords, customers, suppliers, distributors, licensors, licensees, and others having dealings with Seller and its Affiliates that are necessary for the operations of the Business and (iii) promptly repair, restore or replace any Tangible Property constituting Acquired Assets that are destroyed or damaged and promptly notify the landlord under each of the Rehovot Facility Leases to remediate any deficiencies discovered at the Rehovot Facility. (b) Without limiting the foregoing, except as expressly contemplated by this Agreement, during the Pre-Closing Period, Seller shall not and shall cause its Affiliates not to, and shall not permit any of the following, without the prior written consent of Purchaser Guarantor (such consent not to be unreasonably withheld, conditioned delayed or delayed), Seller shall:conditioned): (ai) operate and carry on Sell, lease, license or otherwise transfer, or agree or commit to sell, lease, license or otherwise transfer any interest in the Acquired Assets or the Business or any interest in or right relating to any such interest, or dispose any of the Inventory (other than in the ordinary course of business); (ii) permit, or agree, commit or offer (in writing or otherwise) to permit, any interest in the Acquired Assets or the Business to become subject, directly or indirectly, to any Lien; (iii) terminate the employment of any Identified Service Provider (other than for good reason); (iv) amend the terms of, or enter in to, any Contract with any labor union, works council, or similar organization; (v) amend the terms of, or enter in to, any employment agreement, consulting agreement, or independent contractor agreement; grant, agree to grant, pay or modify the terms of any existing discretionary bonus, retention award, change in control award, special remuneration or special noncash benefit unless such bonus, award, etc. would be the responsibility of Seller and not Purchaser, and would not obligate Purchaser to make any payments on a going-forward basis; or (other than annual increases to annual base salary and wages in the ordinary course of business consistent with past practice), materially increase the benefits, salaries, wage rates or other annual compensation, of any Business Service Provider; (bvi) use commercially reasonable efforts to preserve intact the goodwill (i) terminate (other than by expiration) or amend or modify (other than by automatic extension or renewal if deemed an amendment or modification of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IPany such Contract) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; any respect any Material Contract or (eii) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering enter into any closing agreementContract that may constitute an Acquired Contract at Closing, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable other than in the ordinary course of business, subject business and does not result in material Liability to the Seller’s ability to pursue in good faith any bona fide disputesbe assumed by Purchaser (or its Affiliates) following Closing; (hvii) not sell, lease, license, transfer, abandon, pledge, encumber commence any Action relating to the Business or the Acquired Assets or settle any Action relating to the Business or the Acquired Assets; (viii) enter into any transaction or take any other than Permitted Encumbrances), fail to maintain action in the conduct of or otherwise dispose of any Purchased Assets, other than relating to the sale of Inventory and other dispositions of assets in Business or the Acquired Assets outside the ordinary course of business consistent with Seller’s past practicepractices that would have a Material Adverse Effect on the Business or the Acquired Assets; (iix) not (i) exclusively licenseadopt a plan of complete or partial liquidation, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose ofdissolution, abandonrestructuring, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority recapitalization or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.reorganization;

Appears in 1 contract

Samples: Asset Purchase Agreement (VBI Vaccines Inc/Bc)

Conduct of the Business. 9.01. From the date of this Agreement hereof and until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or expressly consented to in writing signed by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)Buyer, Seller and the Principals shall: , and shall cause their Affiliates to: (ai) operate and carry on conduct the Business only in the ordinary course Ordinary Course of business Business, (ii) maintain and preserve the Business's properties in good repair, working order and condition, including but not limited to, performing maintenance in a manner and on a basis consistent with past practice; , (biii) use commercially reasonable efforts to preserve intact the Business's operations and organizations intact, (iv) use commercially reasonable efforts to keep available the services of the Business's current officers, (v) use commercially reasonable efforts to preserve the Business's current business relationships, including, but not limited to, the goodwill of the Business its customers and the relationships of Seller with its customers, vendors, suppliers, Business Employees suppliers and others having business relations relationships with it, (vi) except as set forth on Schedule 9 attached hereto, not change the rate or terms of compensation payable, or to become payable, to any of the Business's officers or employees, except in the Ordinary Course of its Business, (vii) not grant any change in the rate or terms of any Seller Plan, (viii) not enter into any agreement or make any other commitment in connection with the Business; Business or the Purchased Assets involving an amount in excess of $50,000, (cix) continue to maintain not sell, lease (as lesser), transfer, license (as licensor), encumber, grant or create a Lien on, any of the BooksPurchased Assets, Records other than in a manner and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and , (dx) not terminate or amend any Assumed Contract, (xi) refrain from doing, or causing to be done, anything which would cause the representations and warranties set forth in Article V of this Agreement from not being true, complete and correct on the Closing Date as if made on such date, (xii) continue to make insure itself and the Purchased Assets and all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts property owned by Seller in accordance with the terms thereof; manner disclosed in this Agreement, and to use, operate, maintain and repair the Purchased Assets consistent with past practices, (fxiii) not enter into any agreement to sell Purchased Assets or supply services to others without Buyer's prior written consent, except in the Ordinary Course of Business, (xiv) refrain from makingdoing any act or omitting to do any act, changing or revoking permitting any Tax election; refrain from adopting act or changing omission to act, which will cause a breach of any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreementcontract, settling commitment or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver obligation of the limitation period applicable to any claim or assessment with respect to Taxes; in each case Seller related to the extent taking such action would adversely affect Business, the Purchased Assets or the Assumed Liabilities, (xv) promptly notify Buyer in writing of any written or Threatened investigation or proceeding by or relating to Seller, the Purchased Assets, the Business in a Post-Closing Tax Period; or this Agreement before any court or governmental department, commission, board, bureau, agency or instrumentality, (gxvi) pay and discharge all material Liabilities related refrain from doing any act or omitting to do any act, or permitting any act or omission to act, which will cause any of the Purchased Assets as they become due and payable to be depleted or any of the Accounts Receivables or trade payables to be collected on an accelerated basis, other than in the ordinary course Ordinary Course of businessBusiness, subject (xvii) use its best efforts to cause all of the conditions to the Seller’s ability obligations of Seller under this Agreement to pursue in good faith any bona fide disputes; be satisfied on or prior to the Closing Date and (hxviii) not sellterminate any of its employees without the prior written consent of Buyer, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise in the Ordinary Course of Business; (xix) not dispose of any or modify or alter the Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course Ordinary Course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonBusiness, or permit to lapse incur, create or assume any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract Lien (other than terminations Permitted Liens, which must be discharged on or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable prior to the Business and, promptly following receipt thereof, give to the Purchaser copies of Closing Date) on any notice received from any Governmental Authority Purchased Asset; or other Person alleging any violation of any such Laws; and (qxx) not take any material actions that action which could reasonably be expected to prevent or materially delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms consummation of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingContemplated Transactions.

Appears in 1 contract

Samples: Asset Purchase Agreement (Cross Country Healthcare Inc)

Conduct of the Business. From Pending the Closing. The Seller and the Company agree that from the date of this Agreement until hereof through the Closing (or until Date, the earlier termination of this Agreement Business will be conducted only in accordance the usual and ordinary course consistent with Section 11.1)past practice, and, except as expressly required may be permitted by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived shown on Schedule 4.02 or consented to approved in writing in advance by Purchaser (which consent shall not be unreasonably withheldPurchaser, conditioned or delayed), the Seller shalland the Company agree as follows: (a) operate and The Company 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 Company 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 Company shall not institute any new methods of accounting except in accordance with generally accepted accounting principles. (c) The Company shall use commercially reasonable efforts to preserve the Business intact, to protect and preserve the Company's assets, and preserve its relationships with licensors, suppliers, distributors, customers, contractors and employees. (d) Except as otherwise specifically permitted pursuant to this Agreement, the Company shall not: (A) 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), except in the case of clause (B) obligations and liabilities incurred in the ordinary course of business and consistent with past practice; (ii) Permit or allow any of its assets to be subjected to any Encumbrance of any kind or description (except Encumbrances created by law); (iii) declare any dividend or make any payment or distribution of property (other than cash and cash equivalents) to the Seller; (iv) Dispose of or permit to lapse any rights to the use of any Intellectual Property (and the Company 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; (v) Make any single capital expenditure or future commitment 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; (vi) Pay, loan or advance (other than in the ordinary course of business consistent with past practices) any amount to, or sell, transfer or lease any properties or assets to, or enter into any agreement or arrangement with, any Affiliate of the Company; (vii) Change any of the Company's banking or safe deposit arrangements; (viii) 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; (ix) Other than in the ordinary course of business consistent with past practice, pay any amounts (whether in cash or property) to any employee of the Company, whether or not pursuant to any Subsisting Contract, any plan, policy or program identified on Schedule 5.22 hereto or any employment agreement under Schedule 5.18 hereto; (bx) use commercially reasonable efforts Grant to preserve intact any officer or employee any increase in compensation or benefits, other than increases in compensation or benefits for employees in the goodwill ordinary courses of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and; (dxi) continue Pay any pension, retirement allowance or other employee benefit not required by any plan, policy or program identified on Schedule 5.22 hereto or any employment agreement set forth on Schedule 5.18(a) hereto; (xii) Adopt, agree to adopt, or make all necessary and material filings and payments with Governmental Authorities any announcement regarding (i) the adoption of any new pension, retirement or other employee benefit plan, policy or program, (ii) adoption of any amendments to any existing plan, policy or program identified on Schedule 5.22 as sponsored by the Company unless otherwise required by applicable Law, or (iii) consent to the amendment of any existing plan, policy or program identified on Schedule 5.22 as sponsored by the Seller unless otherwise required by applicable Law; or (xiii) Agree, whether in connection with the Business (including all Registered IP) in a timely mannerwriting or otherwise, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation do any of the Business as presently conducted;foregoing. (e) perform all No contract or commitment will be entered into, and no purchase of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking supplies and no sale of any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim Company's assets will be made, by or assessment with respect to Taxes; on behalf of the Company, except (i) normal contracts or commitments for the purchase of, and normal purchases of, supplies or inventory or for the sale of inventory, in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable made in the ordinary course of businessbusiness and consistent with past practice, subject to and (ii) other contracts, commitments, purchases or sales in the Seller’s ability to pursue in good faith any bona fide disputes;ordinary course of business and consistent with past practice. (hf) not sellThe Company shall maintain the insurance set forth on Schedule 5.17 hereto and all property insured thereby shall be used, leaseoperated, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory maintained and other dispositions of assets repaired in the ordinary course of business consistent with past practice;. (ig) The Company shall not (i) exclusively license, assign do any act or transfer omit to do any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonact, or permit any act or omission to lapse act (to the extent the Company has control over such act or omission), which will cause a breach of any rights in material contract or to commitment of the Company or which would cause the breach by the Company of any Purchased Business Intellectual Property representation, warranty, covenant or any Purchased Business Technology;agreement made hereunder. (jh) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) The Company shall duly comply in all material respects with all Laws laws applicable to the Business andit and its properties, promptly following receipt thereofoperations, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andbusiness and employees. (qi) not take any material actions that could reasonably The Company shall file all Federal, state, local and foreign Tax Returns and amendments thereto required to be expected to delay the Closing; providedfiled by it and shall pay all Taxes shown as due and payable thereon. All returns and reports in respect of employee withholdings, howeverFICA, except unemployment and other similar items and other applicable taxes shall be timely made as expressly provided shall all deposits and payments due in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms respect of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingsuch taxes and obligations.

Appears in 1 contract

Samples: Stock Purchase Agreement (Official Information Co)

Conduct of the Business. From The Seller, DCCI and the Shareholders (as applicable) covenant and agree with the Buyer that from and after the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required authorized by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or expressly consented to in writing by Purchaser the Buyer (which such consent shall not to be unreasonably withheld, conditioned or delayed), Seller shall: withheld in respect of any request for the actions described in subsection (ai) operate and carry on hereof to the Business extent that such action would be in the ordinary course of business for the Business or otherwise would not result in any adverse effect to the Business), the Seller shall: operate the Business and the Transferred Assets only in the usual, regular and ordinary manner with a view to maintaining the goodwill that the Seller now enjoys and, to the extent consistent with past practice; (b) such operation, will use commercially all reasonable efforts to preserve intact its present business organization, keep available the goodwill services of the Business its employees and the relationships of Seller preserve its relationship with its customers, vendors, suppliers, Business Employees jobbers, distributors and others other Persons having business relations with the Business; (c) continue it; use all reasonable efforts to maintain the BooksTransferred Assets in a state of repair, Records order and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis condition consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities its usual practice in connection with the Business; maintain its books of account and records relating to the Business (including all Registered IP) in a timely the usual, regular and ordinary manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business usual accounting practices applied on a consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller)basis; and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws statutes, laws, orders and regulations applicable to it and to the conduct of the Business; not sell, assign, transfer, lease or otherwise dispose of any Proprietary Rights, Equipment or any of the other Transferred Assets, except for dispositions of Inventories for value in the usual and ordinary course of business; preserve and maintain all rights that it now enjoys in and to the Proprietary Rights; not mortgage, pledge or otherwise create a security interest in any of the Transferred Assets or permit there to be created or exist any Liens thereon that would not be released upon the transfer of the Transferred Assets to the Buyer pursuant to this Agreement; not enter into any contract, commitment or lease in relation to the Business andthat is not in the ordinary course of the Business; not amend, promptly following receipt thereof, give modify or consent to the Purchaser copies termination of any notice received from Assumed Contract or Lease or waive any Governmental Authority of the Seller’s rights with respect thereto; not grant any increase in the compensation or other Person alleging rate of compensation or commissions or bonuses payable to or severance obligations for any violation of the Transferred Employees or in any bonus plan and not transfer or otherwise change any of the terms or conditions of employment of any of the Transferred Employees; not permit any insurance policy naming it as a beneficiary or a loss payee relating to the Business or the Transferred Assets to be canceled or terminated or any of the coverage thereunder to lapse unless simultaneously with such Lawstermination or cancellation replacement policies providing substantially the same or better coverage are in full force and effect; and pay when due all trade payables and all payments required by any of the Contracts and Other Agreements, and all Taxes of the Seller or with respect to the Business or the Transferred Assets that are or become due and owing, other than Taxes that are being contested in good faith and which would not result in a Lien being imposed on any of the Transferred Assets; not change or modify its credit or collection policies, procedures or practices, including acceleration of collections or receivables (qwhether or not past due); promptly notify the Buyer in writing if the Seller becomes aware of any change that shall have occurred or that shall have been threatened (or any development that shall have occurred or that shall have been threatened involving a prospective change) not take any material actions in the Transferred Assets or the Business that could would reasonably be expected to delay have a Material Adverse Effect, whether or not occurring in the Closingordinary course of business; provided, however, except as expressly provided in this Section 7.1, nothing in and not agree to anything prohibited by this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms which would make any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations representations and warranties of Seller prior to Closingin this Agreement untrue or incorrect.

Appears in 1 contract

Samples: Asset Purchase Agreement (DXP Enterprises Inc)

Conduct of the Business. From the date of this Agreement hereof until the Closing (Date, Seller shall conduct the operation of the Business in the ordinary course consistent with past practice and use its commercially reasonable efforts to preserve intact the business organization and relationships with third parties relating to the Business and to keep available the services of its employees or until the earlier termination of this Agreement in accordance with Section 11.1)independent contractors, except as expressly required by applicable Law, as set forth on Schedule 7.1 those Persons who voluntarily resign in the normal course of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, business or as otherwise waived or consented agreed to in writing by Purchaser (which Buyer. Without limiting the generality of the foregoing, from the date hereof until the Closing Date, except as set forth in Schedule 5.01, without the prior written consent shall not be unreasonably withheld, conditioned or delayed)of Buyer, Seller shallshall not: (a) operate and carry on Take action to accelerate the payment of any account receivable of the Business so as to cause such account receivable to be paid prior to the date the applicable accounts receivable debtor has generally caused equivalent accounts receivable to be paid in the ordinary cause of the Business for periods prior to the date hereof; (b) delay payment of any account payable of the Business beyond the date Seller has generally caused equivalent accounts payable to be paid in the ordinary cause of the Business for periods prior to the date hereof; (c) conduct the Business other than in the ordinary course of business; (d) make any sale, transfer, lease or other disposition of any Purchased Assets having an aggregate value exceeding $50,000 or mortgage, pledge or otherwise create a security interest in any of the Purchased Assets other than Permitted Liens and other than in the ordinary course of business; (e) increase the cash compensation of any Transferred Employee in any material respect other than (i) as required by any agreement or employee benefit plan in effect as of the date hereof, (ii) as required by any applicable law, regulation, judgment, injunction, order or decree or (iii) in connection with regularly scheduled salary increases consistent with past practice; (f) cease the sale and distribution of any products related to the Business other than in the ordinary course of business; (g) fail to maintain the books, accounts and records of the Business on a basis consistent with past practice; (h) create, incur or assume any indebtedness (except for accounts payable in the ordinary course of business) in excess of $50,000 in the aggregate for money borrowed in connection with the Business or secured by any Purchased Assets; (i) modify or change in any material respect any Assigned Contract except (i) renewals of Contracts on substantially similar or better terms and conditions, (ii) any Assigned Contract relating exclusively to Excluded Assets or Excluded Liabilities, (iii) as required by any agreement or benefit plan in effect as of the date hereof, (iv) as required by any applicable law, regulation, judgment, injunction, order or decree or (v) in the ordinary course of business consistent with past practice; (bj) use commercially reasonable efforts to preserve intact the goodwill take any action that would cause any of the Business representations and the relationships of warranties made by Seller with its customers, vendors, suppliers, Business Employees in this Agreement not to remain true and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities correct in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businessrespects; (k) not manufacture, undertake any action or enter into engage in any purchase commitments omission which shall impair or jeopardize in any material respect Seller’s rights to purchase, Inventory in amounts outside the ordinary course of businessSeller Intellectual Property; (l) use commercially reasonable efforts not fail to keep current and change in full force and effect any material respect the methods or renew procedures for billing, collecting, or recording customer accounts receivable or reserves for doubtful accounts, or change in any of material respect the material Permits related methods, procedures or timing for paying or recording accounts payable in each case, as it relates to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract fail to use commercially reasonable efforts to (other than terminations or expirations at i) keep available the end services of the stated term after Transferred Employees engaged in the date hereofBusiness, subject to Seller’s personnel termination decisions approved in writing by Buyer (such approval not to be unreasonably withheld), and (ii) preserve present relationships and goodwill with entities or persons having material business dealings with Seller in connection with the Business, including existing material customers, suppliers, subcontractors and distributors of Seller; (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) fail to comply in all material respects with all Laws statutes, ordinances, regulations, orders, judgments and decrees of every Governmental Authority applicable to the Business and, promptly following receipt thereof, give and to the Purchaser copies conduct of the Business and perform all of its or its Affiliates’ obligations with respect thereto without default; (o) enter into any notice received from any Governmental Authority contract, contractual obligation, bank debt, lease, loan or other Person alleging any violation commitment, written or oral, or agreement for amounts to be due to third parties having an aggregate value exceeding $40,000 in each case in connection with the Business, other than in the ordinary course of any such Lawsbusiness, or except as provided herein; andor (qp) not take fail to keep in full force and effect all of Seller’s insurance policies related to the Business or the Purchased Assets or allow any material actions that could reasonably be expected breach, default, termination or cancellation of such insurance policies to delay occur or exist. In addition, from the Closing; provideddate hereof until the Closing Date, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 Seller shall prohibit Seller or its Affiliates from conducting their businessesuse commercially reasonable efforts to preserve the business and prospects of the Business, including the Business, in their reasonable discretion provided it shall comply with the terms goodwill of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingits customers and employees.

Appears in 1 contract

Samples: Asset Purchase Agreement (Tollgrade Communications Inc \Pa\)

Conduct of the Business. From (a) The Seller and the Company agree that, during the period from the date of this Agreement until to the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as otherwise contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller shallwill cause the Company to, and the Company will and will cause each Company Subsidiary to: (ai) operate conduct the business and carry on operations of the Business Company and the Company Subsidiaries in the Ordinary Course in all material respects; (ii) use their commercially reasonable efforts to (i) preserve, in all material respects, the present business operations, organization (including officers and employees) and goodwill of the Company and the Company Subsidiaries and (ii) preserve, in all material respects, the present relationships with Persons having business dealings with the Company and the Company Subsidiaries (including customers and suppliers); (iii) use their commercially reasonable efforts to maintain the assets and properties of, or used by, the Company and the Company Subsidiaries, in reasonably good operating condition (ordinary course wear and tear excepted, including taking into account the age and circumstances of use of such property in the Ordinary Course); and (iv) maintain the books, accounts and records of the Company and Company Subsidiaries, in all material respects, in the Ordinary Course. (b) The Seller and the Company agree that, during the period from the date of this Agreement to the Closing, except as otherwise contemplated by this Agreement, or as consented to in writing by Buyer, the Seller will cause the Company not to, and the Company will not and will cause each Company Subsidiary not to: (i) amend the charter, bylaws or similar organizational documents of the Company or any Company Subsidiaries; (ii) declare, set aside or pay any non-cash dividends on or make any other non-cash distributions in respect of any Company Shares; (iii) issue or agree to issue any additional Company Shares or other debt or equity securities of the Company or any Company Subsidiary or securities convertible into, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any character obligating it to issue any Company Shares or such other securities; (iv) incur any Indebtedness that will not be paid at or prior to Closing; (v) mortgage, pledge or otherwise encumber any material assets of the Company and any Company Subsidiaries, except for Permitted Liens incurred in the Ordinary Course and Liens to secure Indebtedness that will be repaid in full at or prior to Closing; (vi) other than in the Ordinary Course, (A) acquire or dispose of all or a portion of the assets or capital stock of any business or Person or (B) sell, lease, license or otherwise dispose of any properties or tangible assets which are material, individually or in the aggregate, to the Company and the Company Subsidiaries taken as a whole; (vii) make any capital expenditures, capital additions or capital improvements in excess of One Hundred Thousand Dollars ($100,000) individually or in excess of Five Hundred Thousand Dollars ($500,000) in the aggregate; (viii) except as set forth on Schedule 6.1(b), or as required by the terms of the Company Benefit Plan or applicable Laws, (A) adopt, amend or accelerate payment under any Company Benefit Plan, (B) increase the salary or other compensation of any director, officer or employee of the Company or any Company Subsidiary, other than in the Ordinary Course, (C) hire any new employee with total annual compensation in excess of Two Hundred Thousand Dollars ($200,000), (D) grant any unusual or extraordinary bonus, benefit or other direct or indirect compensation to any director, officer, employee or consultant, (E) 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 any Company Subsidiary, or otherwise modify or amend or terminate any such plan or arrangement, except in the Ordinary Course, or (F) enter into any employment, deferred compensation, severance, special pay, consulting, non-competition or similar agreement or arrangement with any directors or officers of the Company or any Company Subsidiary (or amend any such agreement to which the Company or any Company Subsidiary is a party) except in the Ordinary Course. Notwithstanding the foregoing, the Company may seek from applicable employees waivers to certain parachute payments pursuant to Section 280G of the Code and the regulations promulgated thereunder; (A) enter into any agreement or arrangement that materially limits or otherwise restricts in any material respect the Company or any Company Subsidiary from engaging or competing in any line of business consistent in any location or with any Person or (B) other than the expiration or non-renewal of a Company Material Contract by the other party or parties thereto in accordance with its terms, amend or modify in any material respect any Company Material Contract or terminate any Company Material Contract; (x) materially change or modify the credit, collection or payment policies, procedures or practices of the Company or any Company Subsidiary, including acceleration of collections of receivables (whether or not past due) or fail to pay or delay payment of payables or other liabilities, in each case, in a manner materially inconsistent with past practice; (bxi) use commercially reasonable efforts grant any license, sublicense, covenant, release or right under or with respect to preserve intact any Company Intellectual Property, other than non-exclusive licenses granted by the goodwill of Company or any Company Subsidiary to any customer or end user in the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessOrdinary Course; (cxii) continue dispose of or permit to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and lapse any material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedIntellectual Property rights; (exiii) perform settle, compromise, discharge or agree to settle any litigation, investigation, arbitration or proceeding other than those that provide for a complete release of the Company and the Company Subsidiaries from all claims subject to such dispute and do not provide for any admission of Seller’s material obligations under liability by the Assigned Contracts in accordance with the terms thereofCompany or any Company Subsidiary; (fxiv) refrain from makingmake, changing change or revoking revoke any Tax election; refrain from adopting material election in respect of Taxes, adopt or changing change any accounting method with in respect to of Taxes; refrain from filing , file any amended material Tax Return other than in the Ordinary Course, amend a material Tax Return; refrain from entering , enter into any material closing agreement, settling or compromising settle any Tax material claim or assessment; and refrain from consenting assessment in respect of Taxes, or consent to any extension or waiver of the limitation statutory period of limitations applicable to any claim or assessment with in respect to of Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (gxv) pay and discharge all material Liabilities related make any change to the Purchased Assets its accounting methods, principles, policies, procedures or practices, except as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; may be (i) not (i) exclusively license, assign required by GAAP or transfer any Purchased Business Intellectual Property Law or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology;recommended by the Company’s independent auditors; or (jxvi) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments written agreement to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in do anything prohibited by this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing6.1(b).

Appears in 1 contract

Samples: Stock Purchase Agreement (Trimble Navigation LTD /Ca/)

Conduct of the Business. From Unless otherwise approved in writing by Bxxxx, the date of this Agreement until Company will comply with the Closing (or following covenants until the earlier of the Effective Time and the termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall:. (a) operate The Company will: (i) maintain its legal existence; (ii) use all commercially reasonable efforts to preserve the Business and carry its business organization intact, retain its licenses, permits, authorizations, franchises and certifications, and preserve the existing contracts and goodwill of its customers, suppliers, vendors, service providers, personnel and others having business relations with it; (iii) use all commercially reasonable efforts to keep available to services of present Employees, consultants and independent contractors, in each case in accordance with past practice, it being understood that termination of Employees, consultants and independent contractors with poor performance or for cause shall not constitute a violation of this covenant; (iv) conduct its business only in the ordinary course (including the collection of receivables and the payment of payables and capital expenditures) and use commercially reasonable efforts to duly and timely file all Tax Returns or reports required to be filed with the applicable tax authorities and promptly pay all Taxes, assessments and governmental charges levied or assessed upon them or any of their properties (unless contesting the same in good faith and adequate provision has been made therefor); DB3/200169974.12 (v) keep in effect casualty, public liability, worker’s compensation and other insurance policies in coverage amounts not less than those in effect on the Business Agreement Date; (vi) use all commercially reasonable efforts to preserve and protect the Company Intellectual Property; and (vii) use all commercially reasonable efforts to operate in such a manner as to assure that the representations and warranties of the Company set forth in this Agreement will be true and correct as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. (b) The Company will not: (i) change its method of management or operations in any material respect; (ii) dispose, acquire or license any assets or properties, or make any commitment to do so, other than in the ordinary course of business; (iii) (A) incur any obligation or liability other than (1) in the ordinary course of business or (2) for Transaction Expenses, (B) incur any indebtedness for borrowed money, make any loans or advances, assume, guarantee or endorse or otherwise become responsible for the obligation of any other Person, or (C) subject any of its properties or assets to any Lien other than Permitted Liens, in each case other than in the ordinary course of business; (iv) prepay any Change in Control Payments or Transaction Expenses; (v) modify, amend, cancel or terminate any Material Contract or any Company Benefit Plan; (vi) make any change in the compensation paid or payable to any Employee, manager or consultant as shown or as would be required to be shown on Schedule 2.21(a) of the Company Disclosure Schedule or make any change in the fringe benefits of any Employee; (vii) promote, change the job title of, or otherwise alter in any material respect the responsibilities or duties of, any Company management or Employee; (viii) other than in the ordinary course of business consistent with past practice, enter into any licensing, distribution, sponsorship, advertising, merchant program or other similar contracts, agreements, or obligations which may not be cancelled without penalties by the Company upon notice of thirty (30) days or less; (ix) (A) sell, assign, lease, terminate, abandon, transfer or otherwise dispose of or grant any security interest in and to any item of Company Intellectual Property, in whole or in part, (B) grant any license with respect to any Company Intellectual Property, other than license of Company Products to customers and resellers of the Company to whom the Company licenses such Company Products in the ordinary course of business, (C) develop, create or invent any Intellectual Property jointly with any third party, (D) disclose, or allow to be disclosed, any confidential Company Intellectual Property, unless such Company Intellectual Property is subject to a confidentiality or non-disclosure covenant protecting against disclosure thereof or (E) allow any Company Intellectual Property owned by the Company to become abandoned, dedicated, disclaimed, or lapse, provided that the Company shall not be required to make any filings, DB3/200169974.12 registrations or take any prosecution actions with respect to such Company Intellectual Property that it would not take in the ordinary course of business consistent with past practice; (bx) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering enter into any closing agreement, settling contract or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action agreement which would adversely affect the Purchased Assets or the Business in otherwise be considered a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (Material Contract other than Permitted Encumbrances), fail contracts or agreements with customers and resellers to maintain or otherwise dispose of any Purchased Assets, other than whom the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Company licenses Company Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (kxi) not manufacturemake or cause to be made any dividend, distribution, redemption, repurchase, recapitalization, reclassification, grant, issuance, repricing, split, combination or other transaction involving the Company Securities (other than in the connection with the exercise of Purchase Rights outstanding as of the Agreement Date), or any preemptive right, subscription right, option, warrant or right to acquire any such units or equity securities; provided, however, the Company may use up to 50% of its Unrestricted Cash to pay all or a portion of the Aggregate Preferred Dividends (the amount actually used for such purpose, the “Dividend Prepayment”). (xii) accelerate the collection of any accounts receivable, fail to pay, or delay in paying accounts payable when due (except any account payable being disputed in good faith), or otherwise make any change in or otherwise deviate from its accounting practices or procedures; (xiii) except as otherwise required by applicable Law, change any method of Tax accounting, make or change any Tax election, file any amended Tax Return, settle or compromise any Tax liability, agree to an extension or waiver of the statute of limitations with respect to the assessment or determination of Taxes, enter into any purchase commitments closing agreement with respect to purchaseany Tax, Inventory surrender any right to claim a Tax refund, prepare any Tax Returns in amounts outside a manner inconsistent with the past practices of the Company with respect to the treatment of items on such Tax Returns or incur any material liability for Taxes other than in the ordinary course of business; (lxiv) use commercially reasonable efforts not fail to keep current and in full force and effect change its customer pricing or renew offer any of the material Permits related to the Business; (m) not amendrebates, modifydiscounts or promotions, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practicebusiness; (pxv) comply in all material respects with all Laws applicable to the Business andacquire any business or Person, promptly following receipt thereofwhether by merger or consolidation, give to the Purchaser copies purchase of assets or equity securities or any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andmanner; (qxvi) not take cancel or waive any material actions that could reasonably be expected rights of substantial value, or pay, discharge or settle any claim of substantial value; (xvii) amend the Company Certificate of Formation or Company Operating Agreement, other than as contemplated by the Operating Agreement Amendment; (xviii) make any capital expenditures that, individually or in the aggregate, exceed $50,000; or (xix) commit to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms do any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right foregoing referred to control or direct the operations of Seller prior to Closingin clauses (i) - (xviii).

Appears in 1 contract

Samples: Merger Agreement (PTC Inc.)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, a) Except as set forth on Schedule 7.1 of the Seller Disclosure Schedule, 5.02(a) or as required or expressly contemplated by or required to implement the terms of this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which consent Buyer will not unreasonably withhold, delay or condition) or except as required by Applicable Law or any Governmental Body, from the date of this Agreement to the Closing Date, Seller shall cause each of the Companies to: (i) use commercially reasonable efforts to conduct their business in the Ordinary Course of Business; (ii) to the extent consistent therewith, use commercially reasonable efforts to keep substantially intact their business and to keep available the services of principal officers and key employees; and (iii) make capital expenditures consistent with the Budgeted Capital Expenditures subject to deviations therefrom that may occur in the Ordinary Course of Business in connection with mine development and operations. (b) In addition (and without limiting the generality of the foregoing), except as set forth on Schedule 5.02(b) or as required or expressly contemplated by the terms of this Agreement or consented to in writing by Buyer (which consent Buyer will not unreasonably withhold, delay or condition) or except as required by Applicable Law or any Governmental Body, Seller shall not and shall not cause or permit any of its Affiliates (including any Company) to do, and shall prevent each of its Affiliates (including any Company) from doing, any of the following, without the prior written consent of Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall:): (ai) operate and carry on amend the Business in Charter Documents of the ordinary course of business consistent with past practiceCompanies; (bii) use commercially reasonable efforts to preserve intact the goodwill issue any equity interest in any of the Business and Companies or any option, warrant or right relating thereto or any securities convertible into or exchangeable for any equity interest in any of the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessCompanies; (ciii) continue to maintain the Booksadopt or amend in any material respect any material Plan (or any plan that would be a Plan if adopted) except in each case (A) as required by any existing agreement or Plan, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (dB) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business actions that are not specifically targeted at Company Employees or (including all Registered IPC) in a timely mannerthe Ordinary Course of Business; provided, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation that, none of the Business as presently conductedCompanies shall be restricted from entering into or making available to newly hired employees or to employees in the context of promotions based on job performance or workplace requirements, in each case in the Ordinary Course of Business, plans, agreements, benefits and compensation arrangements that have a value that is consistent with the past practice of making compensation and benefits available to newly hired or promoted employees in similar positions; (eiv) perform all grant to any officer or employee of Seller’s any Company, or who will be an officer or employee of any Company as of the Closing any increase in compensation or benefits, except as may be required under any existing agreement or Plan and for annual compensation adjustments in the Ordinary Course of Business; provided, that, the foregoing shall not restrict any Company from entering into or making available to newly hired employees or to employees in the context of promotions based on job performance or workplace requirements, in each case in the Ordinary Course of Business, plans, agreements, benefits and compensation arrangements that have a value that is consistent with the past practice of making compensation and benefits available to newly hired or promoted employees in similar positions; (v) voluntarily recognize any labor union or other employee representative, or enter into any collective bargaining agreement or other Contract with any labor union or representative with respect to any Company Employees or to which any Company would be a party, except as otherwise required by Applicable Laws; (vi) (A) engage or hire, other than in the Ordinary Course of Business, or terminate the service relationship or employment of, other than for cause or in the Ordinary Course of Business, any individual contractor or employee of any Company, or who will be an officer or employee of any Company as of the Closing, or (B) transfer the employment or service relationship of any individual contractor or employee to or from a Target Company, other than pursuant to Section 6.01(g); (vii) impose any Liens on any of the assets of any Company, or any assets expressly contemplated by the Restructuring Agreement to be transferred to any Company, other than Permitted Liens or Liens released at Closing; (viii) redeem or purchase any equity interests of a Company; (ix) make any loans, advances or capital contributions to any other Person outside of the Ordinary Course of Business or which would be an obligation of the Company as of the Closing; (x) pay, loan or advance any amount to, or enter into any Contract between any Company, on the one hand, and Seller or any of its Affiliates, on the other hand except for: (A) transactions between or among the Companies; (B) cash dividends, cash distributions or transfers of cash to equity holders of the Companies; (C) intercompany transactions in the Ordinary Course of Business; and (D) payments, loans or advances made pursuant to existing agreements; (xi) cancel any material obligations under debts owed to or waive any material Claims or material rights of the Assigned Contracts Companies or with respect to any of the assets of any Company, or any assets expressly contemplated by the Restructuring Agreement to be transferred to any Company; (xii) cause any Company to make any capital expenditure in excess of $1,000,000 in the aggregate (other than (A) capital expenditures made in accordance with the terms Budgeted Capital Expenditures or (B) in connection with an emergency, as reasonably determined by Seller or any Company); (xiii) make any material change in the accounting methods or practices, collection policies, pricing policies or payment policies used by any of the Companies, except as required by GAAP or applicable securities listing standards; (xiv) cause any Company to acquire by merging or consolidating with, or by purchasing a substantial portion of the equity interests or assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof; (fxv) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain license or otherwise dispose of any Purchased Assetsassets of any Company, or any assets expressly contemplated by the Restructuring Agreement to be transferred to any Company, except inventory and obsolete or excess equipment or other than the sale assets sold or disposed of Inventory and other dispositions of assets in the ordinary course Ordinary Course of business consistent with past practiceBusiness; (ixvi) not (i) exclusively licenseamend in any material respect or terminate any Material Contract, enter into any Contract that would be a Material Contract or that would otherwise require disclosure on the Schedules in response to the representations and warranties made by Seller in Article III if entered into prior to the date hereof, or waive or assign or transfer any Purchased Business Intellectual Property material right under any Material Contract or any Purchased Business Technology other Contract disclosed on the Schedules prepared in response to any Person (including any current or former employee or consultant the representations and warranties made by Seller in Article III, in each case other than in the Ordinary Course of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business TechnologyBusiness; (jxvii) not grant enter into any allowances lease of real property solely used in, or discounts on Products outside substantially dedicated for use in, the ordinary course of business or sell Inventory in excess of consumption consistent with past practices Business, except in the ordinary course Ordinary Course of businessBusiness (provided that any such lease would not require consent of the counterparty to (x) assign to a Company or (y) consummate the transactions contemplated by this Agreement); (kxviii) not manufacturemake or change any material Tax election of any Company, make any material change in any method of Tax accounting of any Company or any Tax accounting period of any Company, file any material amended Tax return of any Company, waive or extend the statute of limitations applicable to, or settle, compromise or surrender (or enter into any purchase commitments to purchaseclosing agreement with respect to), Inventory any material Tax liability or refund of any Company, except in amounts outside each case as required under the ordinary course Ordinary Course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (mxix) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at exercise the end option set forth in Section 6.2.3 of the stated term after PRB Agreement (as defined in the date hereofSubject Contract);; or (nxx) not waiveauthorize any of, releaseor commit or agree to take, assign whether in writing or modify otherwise, any material benefit or claim under any Assigned Contract;of the foregoing actions. (oc) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided Nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein Agreement shall give PurchaserBuyer, directly or indirectly, the right to control or direct the any Company’s operations of Seller prior to Closing. Each Company shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over its business, assets and operations.

Appears in 1 contract

Samples: Purchase and Sale Agreement (Peabody Energy Corp)

AutoNDA by SimpleDocs

Conduct of the Business. From (a) Between the date of this Agreement until Execution Date and the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement provided for in this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallshall use commercially reasonable efforts to: (i) continue and conduct the Business in Seller’s (and, if applicable, its Affiliates’) ordinary and usual course of business and in a manner consistent in all material respects with past practices, which shall include using commercially reasonable efforts to maintain a level of Inventory consistent with past practice or as otherwise reasonably necessary to operate the Business (except where such conduct would conflict with Seller’s other obligations under this Agreement or any Other Agreement) and (ii) preserve in all material respects the Business, which shall include using commercially reasonable efforts to maintain good working relationships with all of its customers, distributors, wholesalers, suppliers, licensors, licensees and any others with whom or with which it has business relations. (b) Between the Execution Date and the Closing Date, unless otherwise agreed by Purchaser, Seller shall not (and Seller shall not permit any of its Affiliates to) do any of the following without the written consent of Purchaser: (ai) operate and carry on sell the Business Products other than in the ordinary course of business or in amounts that are inconsistent with sales by Seller (and as applicable, its Affiliates) during Seller’s fiscal quarter ended June 30, 2012; (ii) terminate or fail to exercise any rights of renewal with respect to any Assigned Contracts set forth on Schedule 1.1(b) of the Seller Disclosure Schedule that by its terms would otherwise expire, except to the extent that such termination or failure to renew is in the ordinary course of business and consistent with past practice; (biii) use commercially reasonable efforts settle or compromise any material claims of Seller or its Affiliates (to preserve intact the goodwill extent relating to any Product or the Business); (iv) enter into any Contract relating in any way to the Business, except to the extent that such Contract is (A) entered into in the ordinary course of business and consistent with past practice and (B) does not involve Liabilities in excess of fifty thousand dollars ($50,000) individually or two hundred fifty thousand dollars ($250,000) in the aggregate; (v) make any budgeted or unbudgeted capital expenditure or commitment or addition to property, plant or equipment of Seller in respect of the Business and or the relationships Purchased Assets, individually or in the aggregate, in excess of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Businesstwo hundred fifty thousand dollars ($250,000); (cvi) continue take, or fail to maintain take, any other action that could reasonably be expected to result in a breach or inaccuracy in any of the Books, Records and Files representations or warranties of Seller contained in this Agreement; SD\906843.15 (vii) (A) incur, create, assume or permit the incurrence, creation or assumption of any Encumbrance (other than Permitted Encumbrances) with respect to the Purchased Assets, (B) dispose of any of the Purchased Assets, except for sales or use of Inventory and its Affiliates exclusively Promotional Materials in the ordinary course of business, or primarily (C) waive, release, grant, license or transfer any right, title or interest in or to any Purchased Asset, except in the ordinary course of business; (viii) revise or modify any Promotional Materials (including any Labeling) except as required by any Governmental Authority or applicable Law; (ix) commence any litigation related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with or the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedPurchased Assets; (ex) perform all of Seller’s material obligations under abandon, cease prosecution on, fail to maintain, or fail to pay any fees or expenses in connection with, any Patent or pending patent application relating to the Assigned Contracts in accordance with the terms thereofProduct Intellectual Property; (fxi) refrain from makingabandon, changing fail to maintain, or revoking fail to pay any fees or expenses in connection with, any Applicable Permits; (xii) modify or amend in any material respect any Assigned Contract; (xiii) make, change or revoke any Tax election; refrain from adopting adopt or changing any change an accounting policy, method or period with respect to Taxes; refrain from filing file any amended Tax Return; refrain from entering enter into any closing agreement, settling ; settle or compromising compromise any Tax claim or assessmentassessment or surrender any right to claim a Tax refund; and refrain from consenting or consent to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period;Business; or (gxiv) pay and discharge all material Liabilities related agree to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew take any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase actions specified in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, howeverthis Section 6.2, except as expressly provided in contemplated by this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including Agreement and the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingOther Agreements.

Appears in 1 contract

Samples: Asset Purchase Agreement (Alphatec Holdings, Inc.)

Conduct of the Business. From The Company will, and the date of this Agreement until Sellers will cause the Closing (or until Company to, comply with the earlier termination of this Agreement in accordance with Section 11.1)following covenants prior to the Closing, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as unless otherwise waived or consented to approved in writing by the Purchaser (which consent approval shall not be unreasonably withheld, conditioned delayed or delayedconditioned), Seller shall:except as set forth on Schedule 5.1 or pursuant Section 5.12(a). (a) operate The Company will, and carry on the Business in Sellers will cause the ordinary course of business consistent with past practiceCompany to: (i) maintain its legal existence; (bii) use commercially reasonable efforts to preserve intact the goodwill of the Business and its business organization intact, retain its licenses, permits, authorizations, franchises and certifications, and preserve the relationships existing Contracts in accordance with their respective terms and goodwill of Seller with its customers, suppliers, vendors, suppliersservice providers, Business Employees personnel and others having business relations with the Businessit; (ciii) continue to maintain conduct its Business only in the Books, Records ordinary course (including the collection of receivables and Files the payment of Seller payables and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; andcapital expenditures); (div) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain operate in effect such a manner as to assure that the representations and warranties of the Company and the Sellers set forth in this Agreement will be true and correct in all material Permits required for the ongoing operation respects as of the Business Closing Date with the same force and effect as presently conductedif such representations and warranties had been made on and as of the Closing Date; (ev) perform all of Seller’s material obligations under maintain the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingbooks, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; accounts and refrain from consenting to any extension or waiver records of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices Company in the ordinary course of business; (kvi) comply in all material respects with all contractual and other obligations of the Company; (vii) comply in all material respects with all Legal Requirements; and (viii) form Holdings and cause Holdings to execute and deliver the Joinder Agreement as soon as reasonably practicable following the date of this Agreement. (b) Without limiting the generality of the foregoing, the Company will not, and the Sellers will cause the Company not manufactureto: (i) change its method of management or operations in any material respect; (ii) dispose, acquire or license any assets or properties in an aggregate amount in excess of $25,000 or make any commitment to do so; (iii) except in the ordinary course of business, incur any Indebtedness for borrowed money, make any loans or advances (other than employee advances, credit cards and expense reimbursements), assume, guarantee or endorse or otherwise become responsible for the obligation of any other Person, or subject any of its properties or assets to any Lien, other than Permitted Liens; (iv) modify, amend, cancel or terminate any Material Contract or any other existing Contract material to the Company or the Business; (v) other than as contemplated by the Incentive Plan, make any change in the compensation paid or payable to any indirect personnel of the Company whose annual compensation is greater than $100,000; (vi) except for the payments contemplated by Section 1.2(c)(iii) and other than as contemplated by the Incentive Plan, (A) increase the salary or other compensation of any director, officer or employee of the Company, (B) grant any bonus, benefit or other direct or indirect compensation to any director, officer, employee or consultant, (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 or (D) enter into any employment, deferred compensation, severance, special pay, consulting, non-competition or similar Contract or arrangement with any directors or officers of the Company (or amend any such Contract to which the Company is a party); (vii) promote, change the job title of, or otherwise alter in any material respect the responsibilities or duties of, any management employee or officer of the Company; (viii) enter into any Contract with respect to which the Company has any liability or obligation involving more than $100,000, contingent or otherwise, or which may otherwise have any continuing effect after the Closing (other than in the ordinary course of business, and other than such liabilities or obligations that are billable directly to a client or customer of the Company), or which may place any express limitation on the method of conducting or scope of the Business; (ix) make or cause to be made any redemption, repurchase, recapitalization, reclassification, issuance, split, combination or other transaction involving the capital stock or other equity securities or interests of the Company or Holdings, or any option, warrant or right to acquire any such capital stock, equity securities or interests (except as contemplated by the Pre-Closing Transactions); (x) declare, set aside, make or pay any dividend or other distribution in respect of the capital stock of, or other equity interests of, the Company or Holdings, except for any distribution for the purpose of paying taxes with respect to ownership of the Shares or the Interests; (xi) transfer, issue, sell, pledge, encumber or dispose of any shares of capital stock or other securities of, or other equity interests in, the Company or Holdings 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 Holdings (except as contemplated by the Pre-Closing Transactions); (xii) amend the articles of incorporation, certificate of formation, by-laws, operating agreement or equivalent organizational or governing documents of the Company or Holdings; (xiii) make any change in its accounting or Tax reporting principles, methods, policies, practices or procedures, except as required by GAAP or any Legal Requirements (except as contemplated by the Pre-Closing Transactions); (xiv) except as required by law, (A) file, make or change any Tax election or any Tax Return (or any amendment thereof) (except as contemplated by the Pre-Closing Transactions), (B) settle or compromise any Tax claim or liability or enter into a settlement or compromise or (C) surrender any purchase commitments right to purchaseclaim a refund of any Taxes; (xv) change its customer pricing, Inventory rebates or discounts, other than in amounts outside the ordinary course of business; (lxvi) use commercially reasonable efforts not fail acquire any Person or the business of any Person, whether by merger or consolidation, purchase of assets or equity securities or any other manner; (xvii) cancel or waive any rights of substantial value, or pay, discharge or settle any claim of an amount in excess of $10,000; (xviii) make any capital expenditures that, individually or in the aggregate, exceed $10,000; (xix) take any other action which could reasonably be expected to keep current have a Company Material Adverse Effect, or could reasonably be expected to materially and in full force and effect adversely affect or renew any detract from the value of the material Permits related to Company, its assets or the Business; (mxx) not amend, modify, cancel or terminate take any Assigned Contract (other than terminations or expirations at action which would adversely affect the end ability of the stated term after parties to consummate the date hereof)transactions contemplated by this Agreement; (nxxi) not waiveenter into any Contract or arrangement that restrains, releaserestricts, assign limits or modify impedes the ability of the Company to compete with or conduct any material benefit business or claim under line of business in any Assigned Contractgeographic area or solicit the employment of any Persons; (oxxii) not grant recognize any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, labor union or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practicecollective bargaining agreement; (pxxiii) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of commence or settle any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andLegal Proceeding; (qxxiv) not take enter into any material actions that Contract or arrangement with, make any loans to, or borrow money from, either directly or indirectly, any of its officers, directors, employees, stockholders, or any of their respective relatives or Affiliates; (xxv) (A) submit any bid that, if accepted or awarded, could reasonably be expected to delay result in any loss to the Company (or, following the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller the Purchaser or its Affiliates from conducting their businessessubsidiaries) or (B) enter into any Contract which could reasonably be expected to result in any loss to the Company (or, including following the BusinessClosing, in their reasonable discretion provided it shall comply with the terms Purchaser or its subsidiaries); or (xxvi) commit to do any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right foregoing referred to control or direct the operations of Seller prior to Closingin clauses (i)-(xxv).

Appears in 1 contract

Samples: Stock Purchase Agreement (L-1 Identity Solutions, Inc.)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule Section 7.1 of the Seller Disclosure Schedule, as expressly contemplated by or required to implement this Agreement, any Ancillary Agreement or any Ancillary Affiliate Transition Agreement, or as otherwise waived or consented to in writing by the Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller shall: (a) operate and carry on conduct the Business in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve substantially intact the organization of the Business; (c) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of the Seller with its the customers, vendors, suppliers, suppliers of the Business Employees and others having significant business relations with the Business; (cd) use commercially reasonable efforts to keep available the services of the current Business Employees (provided that terminations of Business Employees with “cause” shall not require consent); (e) continue to maintain the Books, Records and Files of the Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and; (df) pay all accounts payable and other current obligations of the Seller related to the Business when they become due and payable in the ordinary course of business, except for account payable or other current obligations that are the subject of a good faith dispute; (g) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits existing permits required for the ongoing operation of the Business as presently conducted; (eh) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; not (fi) refrain from makingsell, changing assign, convey, transfer, intentionally subject to an Encumbrance or revoking lease (as lessor) any Tax election; refrain from adopting Purchased Assets, other than assets used, consumed or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable replaced in the ordinary course of business, subject to (ii) accelerate the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sellcollection of or discount, leasewrite off, licenseforgive, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain waive or otherwise dispose of cancel, in whole or in part, any Receivable included in the Purchased Assets, other than in the sale ordinary course of Inventory and business consistent with past practice or except as required by GAAP or applicable Law, or (iii) enter into any Contract to do any of the foregoing; (i) except as may be required under any Employee Benefit Plan or applicable Law or agreement, not grant to any Business Employee any increase in compensation or benefits, or adopt, enter into or amend any material Employee Benefit Plan; (j) not make, revoke or modify any Tax election, settle or compromise any Tax liability or file any Tax Return relating to the Business in each case other dispositions of assets than on a basis consistent with past practice or as required by Law; (k) not cancel, compromise, waive or release any right or claim relating to the Business or the Purchased Assets, other than in the ordinary course of business consistent with past practice; (il) not (i) exclusively license, assign allow to lapse or transfer abandon any Purchased Business Registered IP or (ii) grant any license to any Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except non-exclusive licenses granted in the ordinary course of business consistent with past practice; (pm) comply in all material respects with all Laws applicable not settle any Action relating to the Business andBusiness, promptly following receipt thereofthe Purchased Assets or the Assumed Liabilities; (n) not enter into or materially amend, give waive, modify or consent to the Purchaser copies termination of any notice received from material Business Contract, or materially amend, waive, modify or consent to the termination of the Seller’s rights thereunder, except in the ordinary course of business; (o) incur any Governmental Authority or other Person alleging any violation indebtedness for borrowed money in respect of any such Lawsthe Business; and (qp) not take agree in writing to do any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1foregoing. Nothing contained herein shall give the Purchaser, directly or indirectly, the right to control or direct the operations of the Seller prior to Closing.

Appears in 1 contract

Samples: Asset Purchase Agreement (Costar Group Inc)

Conduct of the Business. From Pending the Initial Closing. Subject to any obligations as debtors in possession under the Bankruptcy Code and except as otherwise expressly contemplated by this Agreement or any Orders of the Bankruptcy Court or except as described on Schedule 6.2 hereto, from the date hereof until the Initial Closing Date, Sellers shall conduct the Business substantially in the manner as conducted on the date of this Agreement until Agreement. Without limiting the Closing (or until generality of the earlier termination of this Agreement foregoing, subject to any obligations as debtors in accordance with Section 11.1), possession under the Bankruptcy Code and except as otherwise expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, Orders of the Bankruptcy Court or as otherwise waived or consented to in writing by with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, conditioned withheld or delayed)) or except as described on Schedule 6.2 hereto, Seller from the date hereof until the Initial Closing Date, Sellers shall: (a) operate use, preserve and carry maintain the Acquired Assets on a basis consistent with Sellers' practice as of the Business date of this Agreement and all Applicable Laws 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 them in the operation of the PSCs and the Acquired Assets in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact Sellers' obligations under the goodwill Bankruptcy Code and their practice as of the Business and the relationships date of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Businessthis Agreement; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue not commit any act or omit to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in do any act, nor permit any act or omission to act, which may cause a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation breach of any of the Business as presently conductedMaterial Acquired Contracts; (e) perform all of Seller’s material obligations under not take any action or omit to take any action whereby any Intellectual Property included in the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingAcquired Assets may lapse, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreementbecome abandoned, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case dedicated to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandonpublic, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices unenforceable except in the ordinary course of business; (kf) not manufacturetake any action which would downgrade or otherwise re-position its Trademarks; provided that Seller may abandon, cancel, not renew, cease use or otherwise not maintain any Trademark so long as such Trademark is not used or useful in the Business or is not otherwise material to the Business; (g) maintain its books, accounts and records with respect to such Acquired Assets and the PSCs in the usual manner and on a basis consistent with past practice; (h) not enter into any purchase commitments to purchaseagreement or agreements for the sale of a material amount of any of the Acquired Assets or a material portion of any Operating PSC, Inventory except for sales of inventory in amounts outside the ordinary course of business; (i) not create, assume or permit to exist any Lien, other than the Liens of Sellers' pre- and post-petition lenders under the Pre-Petition Credit Agreement and the DIP Credit Agreement, respectively, upon the Acquired Assets, except for Permitted Encumbrances; (j) take no action inconsistent with promoting an ordinary and smooth transition of the Operating PSCs and the Acquired Assets to a Purchaser; (k) not amend or terminate (i) any Material 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 Sellers shall provide reasonable notice of any renewal option under any Material Acquired Contract and, so long as and to the extent that Purchaser has expressly agreed to assume such Material Acquired Contract or to indemnify Sellers for any Liabilities resulting from such renewal, Sellers shall renew such Material Acquired Contract and, provided, further, that Sellers shall 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 Sellers for any Liabilities resulting from such renewal; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew permit any of the material Permits related insurance policy relating to the BusinessBusiness naming any Seller or any Affiliate thereof as a beneficiary or a loss payable payee to be cancelled or terminated without prior notice to Purchaser; (m) not amendfile with the Bankruptcy Court, modifyor permit any controlled Affiliate to file with the Bankruptcy Court, cancel any plan of complete or terminate any Assigned Contract (partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other than terminations or expirations at reorganization that is inconsistent with the end of the stated term after the date hereof)transactions contemplated by this Agreement; (n) not waivetake, releaseor agree to or commit to take, assign or modify permit any material benefit controlled Affiliate to take, or claim under agree to or commit to take, any Assigned Contractaction that would or is reasonably likely to result in any of the conditions to the Initial Closing set forth in Article VIII not being satisfied, or that would materially impair the ability of Sellers or Purchaser to consummate the transactions contemplated by this Agreement in accordance with the terms hereof or materially delay such consummation; (o) Use commercially reasonable efforts to maintain the operations of Sellers and their Affiliates to enable Sellers to satisfy their obligations under the Transition Services Agreement after the Initial Closing provided that Purchaser acknowledges that Sellers are likely to lose employees as a result of the Chapter 11 Case and that Sellers shall not grant be obligated, except as otherwise provided under the Transition Services Agreement, to provide for any Business Employee any increase in compensation or in severance or termination payretention programs for employees; (p) not, without prior consent of Purchaser, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without causeraises to Employees, except (i) in the ordinary course of business consistent and in accordance with past practice; practices, (pii) comply in all material respects with all Laws applicable to the Business andraises or bonuses set forth on Schedule 6.2(p), promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws(iii) retention bonuses or severance payments; and (q) not take enter into any material actions contract or agreement that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply is inconsistent with the terms any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Asset Purchase Agreement (Fleming Companies Inc /Ok/)

Conduct of the Business. From During the period from the date of this Agreement until to the Closing (or until First Closing, except as otherwise expressly permitted under the earlier termination terms of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth or provided on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement5.1, or as otherwise waived or consented upon receipt of Purchaser’s prior written consent (such consent not to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), the Seller Parties shall:, and shall cause the Subject Entities, the LIHTC Funds and their respective Subsidiaries to, conduct the Business only in the ordinary course consistent with past practice and shall, and shall cause the Subject Entities, the LIHTC Funds and their respective Subsidiaries to, use their commercially reasonable efforts to preserve intact the present organization of the Subject Entities, the LIHTC Funds and their respective Subsidiaries and the Business, keep available the services of the Business Employees, and to preserve relationships with customers, suppliers, licensors, licensees, contractors, distributors, investors and others having business dealings with any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries or with the Business. Without limiting the generality of the foregoing, from the date of this Agreement to the First Closing, except as otherwise expressly permitted under the terms of this Agreement or as may be required to effect the transactions contemplated by this Agreement (including the Restructuring, the Remainder Funds Restructuring and the Second Closing Restructuring), the Seller Parties shall not, and shall cause the Subject Entities, the LIHTC Funds and their respective Subsidiaries not to, do any of the following without Purchaser’s prior written consent (such consent not to be unreasonably withheld, conditioned or delayed): (a) operate and carry on sell, lease, transfer or dispose of any Assets, any assets of the Subject Entities, the LIHTC Funds or their respective Subsidiaries or any assets otherwise primarily used in the Business except in the ordinary course of business and as would not be material to the Business; (b) any acquisition by the Subject Entities, the LIHTC Funds or their respective Subsidiaries, or otherwise by any Seller Party or any of its Affiliates (other than the Subject Entities, the LIHTC Funds or their respective Subsidiaries) for use primarily in the Business, of assets or properties for an aggregate purchase price in excess of $150,000; (c) incur, create or assume any Indebtedness relating to the Business, or of the Subject Entities, the LIHTC Funds or their respective Subsidiaries, which exceeds $25,000 individually, or $100,000 in the aggregate, except as may be required to effect a Bridge Resolution in accordance with this Agreement, or take any action that results in an Encumbrance, other than a Permitted Encumbrance, being imposed on any Assets, any assets of the Subject Entities, LIHTC Funds or their respective Subsidiaries or any assets otherwise primarily used in the Business; (d) enter into, adopt, amend or terminate any Company Plan as it applies to the Business Employees or the Business or any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries; (e) materially increase the compensation or benefits of any Business Employee or pay or otherwise grant any material benefit not required by any such Company Plan to a Business Employee; (f) except as provided in Section 5.7 of this Agreement, enter into or offer to enter into or amend, terminate or waive any right under any employment or consulting agreement or arrangement with any Business Employee; (g) make or commit to make capital expenditures by the Subject Entities, the LIHTC Funds or their respective Subsidiaries in excess of $25,000 individually or $150,000 in the aggregate; (h) enter into any contract or agreement that, if it were in effect as of the date hereof, would constitute a Material Contract, or amend or terminate any Material Contract; (i) amend the Organizational Documents of any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries; (j) merge or consolidate any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries with any other Person; (k) liquidate or dissolve or adopt any plan of complete or partial liquidation or dissolution; (l) issue, sell, otherwise dispose of, repurchase or redeem any capital stock or other equity or ownership interests or securities of, or Indebtedness of, any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries, or grant any options, warrants, calls, rights or commitments or any other agreements of any character obligating any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries to issue any capital stock or other equity or ownership interests or securities, or any Indebtedness, thereof; (m) declare, set aside or pay any dividend or other distribution with respect to any capital stock or other equity or ownership interests or securities of any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries, other than (i) dividends or other distributions payable to any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries, (ii) dividends or other distributions of Paid Management Fees (which, for the avoidance of doubt, shall reduce the First Closing Purchase Price as provided in Section 2.3), or (iii) the LP Sale Proceeds; (n) change any accounting or Tax procedure or practice, make or change any Tax election or settle or compromise any Tax liability, or amend any material Tax Return, in each case relating to the Business or any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries and that may adversely affect Purchaser, the Business, or any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries after the First Closing Date (or, in the case of the Acquired Remainder Funds, the Second Closing Date) with respect to taxable periods or portions thereof beginning after the First Closing Date (or, in the case of the Acquired Remainder Funds, the Second Closing Date), in each case except as required by Law or by the independent auditors of such Persons; (o) waive or release any material claim or right relating to the Business or of any of the Subject Entities, the LIHTC Funds or their respective Subsidiaries; (p) redeem, repurchase, prepay, defease, incur or otherwise acquire any indebtedness for borrowed money, or otherwise make an advance or payment with respect to the Advanced Loans, except for the payment of accrued interest; (q) request or accept or acknowledge receipt of any reimbursement from Landlord in respect of any Landlord Contribution, as such term is defined pursuant to Section 5.2(b) of the Real Property Lease; (r) release or otherwise utilize Fund Cash Balances other than in the ordinary course of business consistent with past practice;; or (bs) use commercially reasonable efforts agree or otherwise commit to preserve intact the goodwill do any of the foregoing. Notwithstanding any of the foregoing, the Seller Parties, Subject Entities, LIHTC Funds or their respective Subsidiaries shall be permitted to take any action (a “Fiduciary Duty Action”), or cause any action to be taken, which, the Seller Parties, Subject Entities, LIHTC Funds or their respective Subsidiaries reasonably believe would be required to prevent the Seller Parties, the Subject Entities or their respective Subsidiaries from violating any fiduciary duty owed by them in their capacity as the general partner of any of the LIHTC Funds, provided that (i) the Seller Parties, Subject Entities, LIHTC Funds or their respective Subsidiaries provide Purchaser with electronic or written notice (a “Fiduciary Duty Action Notice”) four Business Days prior to taking any Fiduciary Duty Action, (ii) the Fiduciary Duty Action does not involve or result in any payment or disbursement to the Seller Parties or their respective Subsidiaries and (iii) the relationships Seller Parties, Subject Entities, LIHTC Funds or their respective Subsidiaries (as the case may be) take only the actions required to be taken in order to not violate any fiduciary duty owed by them in their capacity as the general partner of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with any of the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related LIHTC Funds. If Purchaser reasonably believes such Fiduciary Duty Action is materially adverse to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with or the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation value of the Business as presently conducted; LIHTC Funds, Purchaser shall provide electronic or written notice (ea “Fiduciary Duty Action Dispute Notice”) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect Seller Parties within four Business Days of receipt of a Fiduciary Duty Action Notice indicating that Purchaser believes the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may Fiduciary Duty Action will be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable materially adverse to the Business and, promptly following receipt thereof, give to or the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms value of the Agreement, including this Section 7.1LIHTC Funds. Nothing contained herein shall give Purchaser, directly or indirectlyIn the event that Purchaser does not provide a timely Fiduciary Duty Action Dispute Notice, the right to control Fiduciary Duty Action taken by the Seller Parties, Subject Entities, LIHTC Funds or direct their respective Subsidiaries shall not have any effect on the operations of First Closing Purchase Price and shall not result in a First Closing Purchase Price adjustment. If Purchaser timely delivers a Fiduciary Duty Action Dispute Notice, the Seller prior to ClosingParties and Purchaser will enter into good faith negotiations regarding a First Closing Purchase Price adjustment.

Appears in 1 contract

Samples: Purchase and Sale Agreement (Municipal Mortgage & Equity LLC)

Conduct of the Business. From During the date of this period from the Agreement Date until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, Seller shall, except as expressly required otherwise contemplated by applicable Law, this Agreement or as set forth on Schedule 7.1 4.01 and shall cause its Affiliates to, operate the Business only in the ordinary course of business consistent with past practices and shall, and shall cause its Affiliates to, use its or their reasonable efforts to preserve intact the Acquired Assets and the Business. Without limiting the generality of the Seller Disclosure Scheduleforegoing, and except as otherwise contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by from the Agreement Date until the Closing Date, without the prior written consent of Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: Seller: (a) operate shall not, and carry on the Business in the ordinary course of business consistent with past practice; shall cause its Affiliates not to, mortgage, pledge or subject to any Lien (other than Permitted Liens) any Acquired Asset; (b) shall, and shall cause its Affiliates to, use commercially its and their reasonable efforts to maintain satisfactory relationships with and preserve intact the goodwill of the Business suppliers and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities customers in connection with the Business conduct of the Business; (including all Registered IPc) in a timely mannershall not, and use commercially reasonable efforts shall cause its Affiliates not to, transfer or grant any rights or options in or to maintain in effect all material Permits required any of the Acquired Assets except for the ongoing operation transfer of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable inventory in the ordinary course of business; (d) shall not, subject and shall cause its Affiliates not to, transfer to any Third Party any rights under any licenses, sublicenses or other agreements with respect to any Intellectual Property; (e) shall, and shall cause its Affiliates to, conduct its marketing and promotional activities with respect to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets Products in the ordinary course of business the Business consistent with past practice; practices; (if) shall not, and shall cause its Affiliates not (i) exclusively licenseto, assign institute any new methods of purchase, sale or transfer operation nor institute any Purchased Business Intellectual Property changes in the product pricing or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any promotional allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices other than in the ordinary course of business; the Business consistent with past practices; (kg) shall not, and shall cause its Affiliates not manufactureto, make any material changes in selling, pricing or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (advertising practices other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business the Business consistent with past practice; practices; and (ph) comply shall not launch any Product packaging changes or Product line extensions and (i) not agree to take any of the foregoing actions. Without limiting the foregoing in all material respects with all Laws applicable to the Business andclause (g), promptly following receipt thereofSeller shall not, give to the Purchaser copies and shall cause its Affiliates not to, engage in any special promotions of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingProduct.

Appears in 1 contract

Samples: Option Agreement (Galen Holdings PLC)

Conduct of the Business. From the date of this Agreement Signing Date until the Closing (Closing, or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser without the prior written consent of OpCo Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller Sellers shall:, with respect to the ownership of the Assets and the operation of the Hospital and the Practices, use commercially reasonable efforts to, in each case except as would not have a material adverse effect (other than as noted below): (a) operate and without regard to material adverse effect, carry on Sellers’ ownership of the Business Assets and the operation of the Hospital, the Practices and the graduate medical education residency and fellowship programs in the ordinary course of business consistent with past practicepractice of hospital operations; (b) use commercially reasonable efforts maintain in effect the insurance and equipment replacement coverage with respect to preserve intact the goodwill Assets; (c) maintain the Assets in materially the same condition as at present, ordinary wear and tear excepted; (d) perform its obligations under all Assumed Contracts and Assumed Leases; (e) following entry of the Business Sale Order, permit and allow reasonable access by OpCo Buyer and its representatives (which shall include the right to send written materials, all of which shall be subject to Sellers’ reasonable approval prior to delivery) to make offers of post- Closing employment to any of Sellers’ personnel (including access by OpCo Buyer and its representatives for the purpose of conducting open enrollment sessions for OpCo Buyer’s employee benefit plans and programs) and to establish relationships of Seller with its customersphysicians, vendors, suppliers, Business Employees medical staff and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereofSellers; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing material deficiencies, if any, cited by any amended Tax Return; refrain from entering into any closing agreementgovernmental authority or accreditation body in the most recent surveys conducted by each, settling cure or compromising any Tax claim develop and timely implement a plan of correction that is acceptable to such governmental authority or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodaccreditation body; (g) pay and discharge timely file or cause to be filed all material Liabilities related reports, notices and tax returns required to be filed and pay all required taxes as they come due to the Purchased Assets as they become due and payable extent that nonpayment would result in a lien that would not be divested by the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputesSale Order; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws Legal Requirements (including environmental laws) applicable to the Business and, promptly following receipt thereof, give to conduct and operation of the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such LawsHospital and Practices; and (qi) not take any without regard to material actions that could reasonably be expected adverse effect, maintain all material approvals, Permits and environmental Permits relating to delay the Closing; providedHospital and the Practices, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including and the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingAssets.

Appears in 1 contract

Samples: Asset Purchase Agreement

Conduct of the Business. From the date of this Agreement hereof until the Closing (Closing, or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)Article IX hereof, Seller shallwill: (a) operate and carry on the Business only in the usual and ordinary course of business consistent with past practice and do all acts and things as may be necessary to preserve, protect and maintain intact the Assets and the Business as a going concern; (b) make payments on payables relating to the Business in a manner consistent with past practice and collect receivables relating to the Business in a manner consistent with past practice; (c) use reasonable efforts to preserve the business relationships of Seller with respect to the Business; (d) refrain from entering into any contract or renewing any lease relating to the Business which (i) calls for payments exceeding $50,000 or (ii) does not expire within one year or is not cancelable by Buyer within one year without penalty, without the prior written approval of Buyer; (e) refrain from taking any action which reasonably could be expected to render any representation or warranty of Seller contained herein untrue or incorrect in any material respect (except to the extent a representation or warranty is qualified by materiality, in which case Seller will refrain from taking any action which would render such representation or warranty untrue or incorrect) as of the Closing; (f) comply in all material respects with all laws applicable to the Business, including, but not limited to, Environmental Laws; (g) refrain from making any disposition of any assets relating to the Business other than in the ordinary course of business consistent with past practice; (bh) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related refrain from making any commitment for capital expenditures relating to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with excess of $50,000 without the Business (including all Registered IP) in a timely mannerprior written consent of Buyer, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) which consent shall not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practicebe unreasonably withheld; (i) not (i) exclusively license, assign or transfer refrain from permitting any Purchased Business Intellectual Property or any Purchased Business Technology of the Assets owned by it to become subject to any Person (including any current Encumbrances, except Permitted Encumbrances or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Real Property or any Purchased Business TechnologyEncumbrances; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory maintain insurance as currently in excess of consumption consistent with past practices in the ordinary course of businesseffect; (k) not manufacturegive Buyer a copy of any notice from any governmental or regulatory authority or any other person alleging any violation of any rule, regulation, law or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of businessruling; (l) use commercially reasonable efforts not fail to keep current and refrain from making any change in full force and effect accounting methods, principles or renew any of the material Permits related practices relating to the Business;; and (m) not amend, modify, cancel or terminate refrain from agreeing to do any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Purchase and Sale Agreement (Russell-Stanley Holdings Inc)

Conduct of the Business. From the date of hereof to the Closing Date (or earlier date if this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with is terminated pursuant to Section 11.18.01 hereof), Seller and its Affiliates shall, except as expressly required in connection with the transactions contemplated by applicable Law, this Agreement and except as otherwise set forth on Schedule 7.1 of the Seller Disclosure Schedulein, as or expressly permitted or contemplated by or required to implement by, this Agreement or any Ancillary Agreement, or as otherwise waived disclosed in the Disclosure Schedules hereto or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallBuyer: (a) operate and carry Carry on the Business in the ordinary course, including with respect to the purchase of Inventory and the conduct of Trade Programs and Consumer Programs, consistent with Seller’s past practice and in substantially the same manner as previously conducted; (b) Not sell, or grant options, warrants or rights to purchase, the Business or any of the Purchased Assets other than in the ordinary course of the Business; (c) Not enter into, amend, modify, terminate (partially or completely), grant any waiver under or give any consent with respect to, or enter into any agreement to amend, modify, terminate (partially or completely), grant any waiver under or give any consent with respect to, any of the Purchased Contracts other than in the ordinary course of the Business; (d) Use commercially reasonable efforts to (i) preserve intact the present business organization, contractual and other arrangements of the Business (ii) maintain existing business relationships with customers, suppliers and distributors of or to the Business in the ordinary course of the Business and (iii) continue all current sales, service, marketing, promotional and product development activities relating to the Business in the ordinary course of the Business; (e) Except to the extent required by applicable law, other than in the ordinary course of Business and consistent with past practice, (i) cause the Business Books and Records to be maintained in the usual, regular and ordinary manner, and (ii) not permit any change in any accounting, financial reporting, credit policies, or allowance policies that would adversely affect the Business or the Purchased Assets, or materially increase the Assumed Liabilities; (f) Continue in full force and effect all material insurance policies (or comparable insurance policies) insuring the Business and the Purchased Assets; (g) Comply in all material respects with any applicable law, statute, rule, regulation, ordinance, extension order, or other pronouncement having the effect of law of the United States, any foreign country or any U.S. or foreign state, county, city or other political subdivision of any Governmental Body applicable and material to the Business (“Laws and Orders”), and promptly following receipt thereof deliver to Buyer copies of any written notice received from any Governmental Body or other Person alleging any violation of any such Law or Order; (h) Not acquire, lease, license or dispose of or agree to acquire, lease, license or dispose of any assets that would constitute Purchased Assets hereunder, other than in the ordinary course of business consistent with past practice, or create or incur any Encumbrance, other than a Permitted Encumbrance, on any assets that would constitute Purchased Assets hereunder; (bi) use commercially reasonable efforts Not violate, breach or default in any material respect under, or take or fail to preserve intact the goodwill take any action that (with or without notice or lapse of the Business and the relationships time or both) would constitute a material violation or breach of, or material default under, any term or provision of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Businessany Purchased Contract; (cj) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related Not engage in any transaction with respect to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain any Affiliate of Seller that will remain in effect all material Permits required for after the ongoing operation of the Business as presently conductedEffective Time; (ek) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing Not make capital expenditures or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case commitments for capital expenditures related solely to the extent taking such action would adversely affect the Purchased Assets Business, including but not limited to additions to property, plant or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (equipment constituting capital assets other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) practice and in an aggregate amount not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of businessexceed $100,000; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of Take the material Permits related to the Business;actions set forth on Schedule 4.01(l); and (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or Not enter into any new employment, deferred compensation contract or similar agreement with understanding to do or engage in any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate of the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided foregoing items set forth in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing4.01.

Appears in 1 contract

Samples: Asset Purchase Agreement (Diamond Foods Inc)

Conduct of the Business. From The Shareholder covenants and agrees with the Buyer that from and after the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required authorized by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or expressly consented to in writing by Purchaser (which consent the Buyer, the Shareholder shall, and shall not be unreasonably withheld, conditioned or delayed), Seller shallcause each of the Companies to: (a) operate and carry on the Business Companies only in the usual, regular and ordinary course of business manner with a view to maintaining the goodwill that the Companies now enjoy and, to the extent consistent with past practicesuch operation, will use all reasonable efforts to preserve intact their present business organizations, keep available the services of their employees and preserve their relationship with their customers, suppliers, jobbers, distributors and other Persons having business relations with them; (b) use commercially all reasonable efforts to preserve intact maintain the goodwill assets and properties of the Business Companies in a state of repair, order and the relationships of Seller condition consistent with its customers, vendors, suppliers, Business Employees and others having business relations with the Businesstheir usual practice; (c) continue to maintain the Books, Records books of account and Files of Seller and its Affiliates exclusively or primarily related records relating to the Business Companies in the usual, regular and ordinary manner, in accordance with the usual accounting practices of the Companies applied on a consistent basis consistent with past practice; andand not increase the carrying value of any assets or properties above their historical costs; (d) continue comply in all Material respects with all statutes, laws, orders and regulations applicable to make all necessary the Companies and material filings and payments with Governmental Authorities in connection with to the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation conduct of the Business as presently conductedCompanies; (e) perform all not sell, assign, transfer, lease or otherwise dispose of Seller’s material obligations under any assets or properties of any of the Assigned Contracts Companies except for dispositions of the inventories of the Companies for value in accordance with the terms thereofusual and ordinary course of business; (f) refrain from making, changing or revoking not move any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable Assets to any claim or assessment with respect to Taxes; a new geographic location other than in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodusual and ordinary course of business; (g) pay preserve and discharge maintain all material Liabilities related rights that the Companies now enjoy in and to the Purchased Assets as they become due Intellectual Property and payable in the ordinary course not sell, assign, transfer, lease or otherwise dispose of business, subject to the Seller’s ability to pursue in good faith any bona fide disputesIntellectual Property; (h) not sellmortgage, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain pledge or otherwise dispose create a security interest or permit there to be created or exist any Liens on the assets or properties of any Purchased Assets, of the Companies other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practicePermitted Liens; (i) not (i) exclusively licenseincur any obligation for borrowed money or purchase money indebtedness whether or not evidenced by a note, assign bond, debenture or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose ofsimilar instrument, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices except in the ordinary course of business; (kj) not manufacture, or enter into any purchase commitments contract, commitment or lease in relation to purchase, Inventory in amounts outside any of the Companies that is out of the ordinary course of businessthe Companies or that is with an Affiliate of any of the Companies or that would be binding on the Buyer; (k) not amend or modify any of the contracts or agreements disclosed in Section 2.6 of the Disclosure Schedule; (l) use commercially reasonable efforts not fail consent to keep current and in full force and effect or renew the termination of any of the material Permits related to contracts and agreements disclosed in Section 2.6 of the BusinessDisclosure Schedule or waive any of the rights of any of the Companies with respect thereto; (m) not amend, modify, cancel permit any insurance policy naming the Shareholder or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after Companies as a beneficiary or a loss payee relating to any of the date hereof)Companies to be cancelled or terminated or any of the coverage thereunder to lapse unless simultaneously with such termination or cancellation replacement policies providing substantially the same coverage are in full force and effect and, further, not settle or permit any of the Companies to settle any claim under any such insurance policy in an amount in excess of $50,000; (n) pay all accounts payable in a manner consistent with past practice, all payments required by any of the contracts and agreements set forth in Section 2.6 of the Disclosure Schedule, and all Taxes other than Taxes that are being contested in good faith and for which adequate reserves exist in the Financial Statements and that would not waive, release, assign result in a Lien being imposed on any assets or modify properties of any material benefit or claim under any Assigned Contractof the Companies; (o) not grant make any Business Employee Tax elections that would affect any increase in compensation of the Companies or in severance change any method of accounting or termination pay, grant application of any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee principles under GAAP; (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate p) not change the terms of employment of any such officer or senior employee without cause, except in or increase the ordinary course compensation or rate of business compensation or commissions or bonuses payable by any of the Companies to any of its employees that is not consistent with past practice; (pq) comply not declare or pay any dividend on or make any other distribution in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies respect of any notice received from any Governmental Authority or other Person alleging any violation of the shares in the capital of any of the Companies or purchase, redeem or otherwise acquire any of such Lawsshares; (r) not authorize or issue, sell, pledge, dispose of or encumber any shares in the share capital of any of the Companies, including the Shares; (s) not grant any stock options or rights to acquire shares in the capital of the Companies including the Shares; (t) not amend or otherwise modify the organizational documents or Bylaws of any of the Companies; (u) not amend any Company Benefit Plan except as required by law or this Agreement; and (qv) not take promptly notify the Buyer in writing if the Shareholder becomes aware of any material actions change that could shall have occurred or that shall have been threatened (or any development that shall have occurred or that shall have been threatened involving a prospective change) in any of the Companies that would reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms have a Material Adverse Effect on any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly Companies whether or indirectly, not occurring in the right to control or direct the operations ordinary course of Seller prior to Closingbusiness.

Appears in 1 contract

Samples: Share Purchase Agreement (Allis Chalmers Energy Inc.)

Conduct of the Business. From The Shareholders covenant and agree with Weatxxxxxxx xxxt from and after the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required authorized by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or expressly consented to in writing by Purchaser (which consent Weatxxxxxxx, xxe Shareholders shall, and shall not be unreasonably withheld, conditioned or delayed), Seller shallcause the Companies and the Subsidiaries to: (a) operate each Company and carry on the Business each Subsidiary only in the usual, regular and ordinary course of business manner with a view to maintaining the goodwill that the Companies and the Subsidiaries now enjoy and, to the extent consistent with past practicesuch operation, will use all reasonable efforts to preserve intact their present business organization, keep available the services of their employees and preserve their relationships with their customers, suppliers, jobbers, distributors and other Persons having business relations with them; (b) use commercially all reasonable efforts to preserve intact maintain the goodwill assets of the Business each Company and the relationships each Subsidiary in a state of Seller repair, order and condition consistent with its customers, vendors, suppliers, Business Employees and others having business relations with the Businesstheir usual practice; (c) continue to maintain the Booksbooks of account and records relating to each Company and each Subsidiary in the usual, Records regular and Files ordinary manner, in accordance with the usual accounting practices of Seller the Companies and its Affiliates exclusively or primarily related to the Business Subsidiaries applied on a basis consistent with past practice; andbasis, and not increase the carrying value of any assets above their historical costs; (d) continue comply in all respects with all statutes, laws, orders and regulations applicable to make all necessary each Company and material filings each Subsidiary and payments with Governmental Authorities in connection with to the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation conduct of the Business as presently conductedCompanies and the Subsidiaries; (e) perform all not sell, assign, transfer, lease or otherwise dispose of Seller’s material obligations under any assets of either Company or any Subsidiary except for dispositions of the Assigned Contracts inventories of the Companies and the Subsidiaries for value in accordance with the terms thereofusual and ordinary course of business and except as provided for in Section 7.21 hereof; (f) refrain from makingpreserve and maintain all rights that the Companies, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; the Subsidiaries and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; Shareholders now enjoy in each case and to the extent taking such action would adversely affect Intellectual Property and not sell, assign, transfer, lease or otherwise dispose of any Intellectual Property other than to Weatxxxxxxx xxxsuant to the Purchased Assets or the Business in a Post-Closing Tax Periodterms of this Agreement; (g) pay and discharge all material Liabilities related not mortgage, pledge or otherwise create a security interest or permit there to the Purchased Assets as they become due and payable in the ordinary course be created or exist any Liens on any assets of business, subject to the Seller’s ability to pursue in good faith either Company or any bona fide disputesSubsidiary; (h) not sellincur any obligation for borrowed money or purchase money indebtedness whether or not evidenced by a note, leasebond, licensedebenture or similar instrument, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices except in the ordinary course of business; (ki) not manufacture, or enter into any purchase commitments contract, commitment or lease in relation to purchase, Inventory in amounts outside either Company or any Subsidiary or any of their respective assets that is out of the ordinary course of businessbusiness of such Company or Subsidiary or that is with an Affiliate of either Company or any Subsidiary or that would bind Weatxxxxxxx xxxer a contract or other obligation with either Company, any Subsidiary or any of their respective Affiliates; (j) not amend or modify any of the contracts or agreements disclosed in Section 3.5(a) of the Disclosure Schedule; (k) not consent to the termination of any of the contracts and agreements disclosed in Section 3.5(a) of the Disclosure Schedule or waive any of the rights of either Company or any Subsidiary with respect thereto; (l) use commercially reasonable efforts except as set forth in Section 6.2(l) of the Disclosure Schedule, not fail permit any insurance policy naming either Company, any Subsidiary or any Shareholder as a beneficiary or a loss payee relating to keep current and either Company or any Subsidiary to be canceled or terminated or any of the coverage thereunder to lapse unless simultaneously with such termination or cancellation replacement policies providing substantially the same coverage are in full force and effect or renew any of the material Permits related to the Businesseffect; (m) not amendpay when due all accounts payable, modifyall payments required by any of the contracts and agreements set forth in Section 3.5(a) of the Disclosure Schedule, cancel or terminate any Assigned Contract (and all Taxes other than terminations Taxes that are being contested in good faith and for which adequate reserves exist in the Financial Statements and that would not result in a Lien being imposed on any assets of either Company or expirations at the end of the stated term after the date hereof)any Subsidiary; (n) collect the accounts receivable of each Company and each Subsidiary only in the ordinary course of business and not waive, release, assign or modify accelerate the payment of any material benefit or claim under any Assigned Contractaccount receivable; (o) not grant make any Business Employee Tax elections that would affect either Company or any increase in compensation Subsidiary or in severance change any method of accounting or termination pay, grant application of any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee principles under GAAP; (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate p) not change the terms of employment of any such officer or senior employee without cause, except in or increase the ordinary course compensation or rate of business compensation or commissions or bonuses payable by either Company or any Subsidiary to any of their respective employees that is not consistent with past practice; (pq) comply not declare or pay any dividend on or make any other distribution in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies respect of any notice received from of the shares in the capital of either Company or any Governmental Authority Subsidiary or other Person alleging purchase, redeem or otherwise acquire any violation of such shares; (r) not authorize or issue, sell, pledge, dispose of or encumber any such Lawsshares of capital stock of either Company or any Subsidiary; (s) not grant any stock options or rights to acquire capital stock of either Company or any Subsidiary; (t) not amend or otherwise modify the organizational documents of either Company or any Subsidiary; (u) not amend any Company Benefit Plan except as required by law or this Agreement; and (qv) not take promptly notify Weatxxxxxxx xx writing if the Shareholders become aware of any material actions change that could shall have occurred or that shall have been threatened (or any development that shall have occurred or that shall have been threatened involving a prospective change) in either Company or any Subsidiary that would reasonably be expected to delay adversely affect either Company or any Subsidiary, whether or not occurring in the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms ordinary course of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingbusiness.

Appears in 1 contract

Samples: Agreement and Plan of Reorganization (Weatherford International Inc /New/)

Conduct of the Business. From Pending the date of this Agreement Closing. Seller covenants that until the Closing (or until Closing, each of the earlier termination of this Agreement in accordance Subsidiaries shall comply, and Seller shall cause the Subsidiaries to comply, with Section 11.1), except as expressly required by applicable Law, as the provisions set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallbelow: (a) Each Subsidiary shall operate and carry on the its respective Business in the ordinary course of business consistent with past practicecourse; (b) use commercially reasonable efforts Seller shall promptly notify Buyer of, and furnish to preserve intact Buyer any information that Buyer may reasonably request with respect to, the goodwill occurrence of any event or the existence of any fact that may result in the representations and warranties of Seller not being true if they were made at any time prior to or as of the Business and date of the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessClosing; (c) continue Except as set forth in Schedule 6.2, neither the Seller nor any of its Subsidiaries shall (i) grant or agree to maintain grant any bonuses to any employee, officer, director, representative or agent of any Subsidiary, (ii) grant any general increase in the Booksrates of salaries or compensation of employees, Records and Files officers, directors, representatives or agents of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; andany (d) continue to make all necessary No Subsidiary shall amend its certificate of incorporation or by-laws and material filings and payments with Governmental Authorities in connection with neither the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation Seller nor any of the Business as presently conductedSubsidiaries shall enter into any merger or consolidation agreement involving any Subsidiary or its assets; (e) perform all Neither the Seller nor any of Seller’s material obligations under its Subsidiaries shall authorize for issuance, issue, sell, deliver or agree or commit to issue, sell or deliver (whether through the Assigned Contracts in accordance with issuance or granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise) any capital stock of any class or any other securities or equity equivalents of any Subsidiary or amend any of the terms thereofof any such securities or agreements; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect Seller shall use best efforts to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; maintain and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or preserve the Business in a Post-of each Subsidiary intact, to retain each Subsidiary's present employees so that they will be available after the Closing Tax Periodand to maintain each Subsidiary's existing relationships with customers, suppliers and others so that those relationships will be preserved after the Closing; (g) pay and discharge all None of the Subsidiaries shall sell, assign or dispose of any of its material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of businessassets or properties, subject to the Seller’s ability to pursue in good faith tangible or intangible, or incur or assume any bona fide disputes;liabilities or enter into any (h) not sellNone of the Subsidiaries shall assume, leaseguarantee, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain endorse or otherwise dispose become liable or responsible (whether directly, contingently or otherwise) for the obligations of any Purchased Assetsother person or entity or make any loans, advances or capital contributions to or investments in any other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practiceperson or entity; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights its Subsidiaries shall maintain in or to any Purchased Business Intellectual Property or any Purchased Business Technologyfull force and effect all insurance currently maintained as set forth in Schedule 4.21; (j) Neither the Seller nor any of its Subsidiaries shall take, or agree in writing or otherwise to take, any of the actions described in this Section 6.2 or any action that would make any representation or warranty inaccurate or untrue or that would result in any of the conditions set forth in Article VIII hereof not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businessbeing satisfied; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) its Subsidiaries shall comply in all material respects with all Applicable Laws applicable including, without limitation, Environmental Laws; (l) Each Subsidiary shall maintain the books of account and records in the usual, regular and customary manner consistent with practices employed prior to the Business and, promptly following receipt thereof, give to date hereof; (m) Seller and each Subsidiary shall not implement or adopt (i) any change in its accounting methods or principles or the Purchaser copies of application thereof (including depreciation lives) or (ii) any notice received from any Governmental Authority material change in its tax methods or other Person alleging any violation of any such Lawsprinciples or the application thereof (including depreciation lives); and (qn) not take No Subsidiary shall split, combine or reclassify any material actions that could reasonably be expected to delay the Closing; providedshares of its capital stock, howeverdeclare, except as expressly provided set aside or pay any dividends or other distributions in this Section 7.1respect of its capital stock or redeem, nothing in this Section 7.1 shall prohibit Seller purchase or otherwise acquire any of its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingcapital stock.

Appears in 1 contract

Samples: Stock Purchase Agreement (Nde Environmental Corp)

Conduct of the Business. From (a) With respect to the date of this Agreement until Transferred Assets other than the Call Assets, between the Effective Date and the First Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required unless otherwise agreed to by applicable LawBuyer, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required such agreement not to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned Seller shall conduct the Business in the following manner: (i) except as otherwise allowed or delayed)required pursuant to the terms of this Agreement or as reasonable to facilitate the transactions contemplated hereby, conduct the Business in the usual, regular and ordinary course in substantially the same manner as heretofore conducted; (ii) pay the debts and Taxes of the Business when due; (iii) pay or perform other obligations of the Business when due; (iv) preserve intact the current business organization of Seller relating to the Business and maintain the relations and goodwill with the suppliers, customers, distributors, licensors, licensees, trade creditors, employees, agents, and others having business relationships with Seller relating to the Business, with the goal of preserving unimpaired the goodwill and ongoing business of the Business; (v) confer promptly with Buyer concerning business or operational matters relating to the Business of a material nature; (vi) sell and ship (including to distributors) products of the Business in the regular and ordinary course, consistent with past practices, and in accordance with Seller’s standard terms, conditions and pricing. Without limiting the foregoing, Seller shall not sell or ship such products in advance of customer orders, on consignment, or if there is a likelihood that such products would be returned by the purchaser or distributor; (vii) maintain all of the Transferred Tangible Assets in their current condition, ordinary wear and tear excepted, and, in the event of any damage to or destruction of any of the Transferred Assets prior to the Closing Date, promptly replace, repair or restore such Transferred Assets; (viii) maintain the Books and Records in the usual, regular and ordinary course in substantially the same manner as heretofore maintained; (ix) promptly notify Buyer in writing of any material event or occurrence not in the usual, regular and ordinary course of the conduct of the Business or any material event involving the Business; (x) promptly notify Buyer in writing of the occurrence of any event that has resulted, will result, or is reasonably likely to result, in the failure to satisfy any of the conditions specified in Section 4.1 hereof; (xi) comply with all laws and regulations applicable to the Business; (xii) maintain insurance coverage in amounts adequate to cover the reasonably anticipated risks of the Business; and (xiii) maintain inventory levels consistent with past practice. (b) With respect to the Call Assets and the Business related to the Call Assets, between the Effective Date and the earlier of the Second Closing Date or the Call Expiration Date, unless otherwise agreed to by Buyer, such agreement not to be unreasonably withheld, Seller shall: (ai) operate perform its obligations and carry on enforce its rights under the Business in [***] and shall not terminate, amend, modify or violate the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill terms of the Business and [***] or waive any breach of the relationships obligations of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related other party to the Business on [***] provided, however, that a basis consistent failure to comply with past practice; and (dthis Section 6.3(b)(i) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation by virtue of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance Seller complying with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in this Agreement shall not be a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course breach of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Sellerthis Section 6.3(b)(i); *** Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into or amend or modify any purchase commitments agreement or take any action which would limit Buyer’s right to purchase, Inventory consummate the Second Closing on the terms set forth in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and this Agreement or result in full force and effect or renew any Lien upon any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the ClosingCall Assets; provided, however, except as expressly provided in that a failure to comply with this Section 7.1, nothing in this Section 7.1 shall prohibit 6.3(b)(ii) by virtue of the Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply complying with the terms of this Agreement shall not be a breach of this Section 6.3(b)(ii); (iii) conduct the AgreementBusiness consistent with Seller’s practices Proximate to the Effective Date relating to the Call Assets, including for the purpose of sustaining design-in opportunities (the Parties agree that the foregoing is not a guarantee by Seller that such design-in opportunities will or can be sustained) and pursuing new design-in opportunities; provided, that for the purpose of this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly6.3(b)(iii), the right term “Business” shall (A) be limited to control the activities of the six (6) Call Employees or direct other reasonably suitable employee (which may include, following Seller’s consultation with Buyer, a replacement employees in the operations event that a Call Employee terminates his or her employment with Seller) and subject to job functions or expertise adjustment as may be agreed between the Parties, (B) not involve any research and development activities and (C) not involve any development of Seller derivative products; (iv) meet with Buyer once every month at a mutually agreeable time and place (which may be by teleconference) and provide Buyer with an update on the status of the Business as it relates to the Call Products; (v) pay the debts and Taxes of the Business related to the Call Assets when due; (vi) pay or perform other obligations of the Business related to the Call Assets when due; (vii) maintain all of the tangible Call Assets in their current condition, ordinary wear and tear excepted, and, in the event of any damage to or destruction of any of the Call Assets prior to the Second Closing Date, promptly replace, repair or restore such Call Assets; (viii) maintain the Books and Records related to the Call Assets in the usual, regular and ordinary course in substantially the same manner as heretofore maintained; (ix) promptly notify Buyer in writing of any event or occurrence not in the usual, regular and ordinary course of the conduct of the Business related to the Call Assets or any material event involving the Business related to the Call Assets; (x) promptly notify Buyer in writing of the occurrence of any event that has resulted, will result, or is reasonably likely to result, in the failure to satisfy any of the conditions specified in Section 4.1 hereof related to the Second Closing; (xi) comply with all laws and regulations applicable to the Business related to the Call Assets; and (xii) maintain insurance coverage in amounts then adequate to cover the reasonably anticipated risks of the Business related to the Call Assets. (c) Notwithstanding the foregoing, a determination of non-performance or a violation by Seller of the [***] as a direct result of Seller’s compliance with the terms of this Agreement or the Business related to the Call Assets as may be agreed upon by the Parties shall not be deemed to be a breach by Seller of this Agreement.

Appears in 1 contract

Samples: Purchase Agreement (Exar Corp)

Conduct of the Business. From (1) Subject to Section 5.01(b), during the period from the date of this Agreement until the Closing (or hereof and continuing until the earlier of the termination of this Agreement in accordance with pursuant to Section 11.17.01 and the Closing (the “Pre-Closing Period”), except as expressly required by applicable Law, (i) as set forth on Schedule 7.1 Section 5.01 of the Seller Disclosure Schedule, (ii) as contemplated expressly permitted or expressly required by or required to implement this Agreement or any Ancillary AgreementDocument, (iii) as required by applicable Law or Educational Law or (iv) as otherwise waived or consented to in writing advance by Purchaser in writing (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: shall and shall cause each member of the Company Group to (aA) operate and carry on conduct the Business in the ordinary course of business consistent in all material respects, (B) use commercially reasonable efforts to maintain material Educational Approvals it currently holds (for clarity, with past practice; respect to Seller, such Educational Approvals related to the Business), (bC) use commercially reasonable efforts to maintain in full force and effect all Insurance Policies or equivalent insurance or replacements thereof without gaps in, or loss of, coverage in any material respect, (D) use commercially reasonable efforts to preserve intact its present business organization and the goodwill material business relationships of the Business and the relationships of Seller (including with its customers, vendorsstudents, instructors, suppliers, Business Employees distributors, licensors, licensees, officers, employees and others having business relations key contractors and applicable Governmental Authorities and Educational Agencies), (E) provide prompt notice to Purchaser if any Service Provider set forth on Section 5.01(a)(E) of the Seller Disclosure Schedule provides written notice to the Company Group or Seller that such Service Provider will terminate such Service Provider’s employment with the Company Group or Seller (as applicable) and (F) use commercially reasonable efforts (which shall not require any new payments or other concessions) to encourage members of the Board of Directors of the University as of the date hereof to remain on the Board of Directors of the University and provide prompt notice to Purchaser if any member of the Board of Directors of the University provides written notice to the University or Seller that such member will terminate such member’s services as a member of the Board of Directors of the University. (2) Notwithstanding anything to the contrary set forth herein, including in Section 5.01(a), during the Pre-Closing Period, except (i) as set forth on Section 5.01 of the Seller Disclosure Schedule, (ii) as expressly permitted or expressly required by this Agreement or any Ancillary Document, (iii) as required by applicable Law or Educational Law or (iv) as consented to in advance by Purchaser in writing (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall not, with respect to the Company Group, the Business, the Service Providers and any assets or properties used or held for use by the Company Group, and shall cause each member of the Company Group not to: (a) adopt any amendments to the Company Group’s Organizational Documents; (b) adopt a plan of complete or partial liquidation or dissolution (or resolutions providing for or authorizing the same) of Seller or the Company Group or otherwise reorganize or restructure or permit the reorganization or restructuring of Seller or the Company Group or declare bankruptcy, file for receivership or consent or fail to object to the appointment of a trustee or receiver; (c) continue establish a record date for, declare, set aside, make or pay any dividends on or make any other distributions (whether in securities, property or any combination thereof) in respect of the Equity Interests of the Company Group, except for cash dividends or cash distributions by a member of the Company Group solely to maintain another member of the Books, Records and Files of Company Group or to Seller and or its Affiliates exclusively or primarily related to the Business on a basis consistent extent in compliance with past practice; andSection 5.24; (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with (A) adjust, split, combine or reclassify or otherwise amend the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation terms of the Business as presently conductedEquity Interests of the Company Group or authorize the issuance of any Equity Interests of the Company Group in respect of, in lieu of or in substitution for any other Equity Interests of the Company Group or (B) purchase, redeem or otherwise acquire, directly or indirectly, any Equity Interests of the Company Group; (e) perform all issue, deliver, grant, sell, authorize, pledge or otherwise encumber any Equity Interests of Seller’s material obligations under the Assigned Contracts in accordance with Company Group, or subscriptions, rights, warrants or options to acquire any Equity Interests of the terms thereofCompany Group, or enter into other agreements or commitments of any character obligating it to issue any Equity Interests of the Company Group; (f) refrain from making(A) form any Subsidiary of the Company or the Company Subsidiary, changing (B) acquire or revoking agree to acquire, directly or indirectly, by merging or consolidating with, or by purchasing any equity or voting interest in or any assets of, or by any other manner, any business or any Person or division thereof, or otherwise acquire or agree to acquire any assets (other than the acquisition of assets in the ordinary course of business) or (C) transfer, sell, lease, exclusively out license or otherwise dispose of or encumber material assets, including by merger consolidation, asset sale or other business combination; provided that this clause (C) shall not prevent the sale of inventory by the Company Group in the ordinary course of business or sales of assets valued with a value of less than $250,000 individually and $1,000,000 in the aggregate; (g) enter into any new line of business or abandon any line of business; (h) other than transactions solely among members of the Company Group, mortgage or pledge any of its material properties or assets (tangible or intangible), or create, assume or suffer to exist any material Liens thereupon other than Permitted Liens; (i) sell, assign, transfer, convey, lease, abandon, allow to lapse or expire or otherwise dispose of any material rights, assets or properties of the Company outside the ordinary course of business; (j) (A) transfer, covenant not to assert, grant or agree to grant in the future any rights to any Person (other than the Company Group) with respect to any Owned Intellectual Property, other than non-exclusive licenses or similar non-exclusive covenants or grants in the ordinary course of business, fail to diligently prosecute any Owned Registered IP or permit any Owned Registered IP to be abandoned or expire (other than statutory expirations), (B) disclose any of the Company’s or Company Subsidiary’s trade secrets, other than pursuant to reasonable non-disclosure agreements or other reasonable confidentiality arrangements entered into in the ordinary course of business, or (C) destroy, alter, dispose of or amend any physical embodiments of any material Intellectual Property to be licensed by Seller or its Affiliates (other than the Company Group) to Purchaser or the Company Group pursuant to the IP Assignment and License; (k) except for (A) transactions solely among members of the Company Group or (B) transactions in the ordinary course with Seller or any of its Affiliates which will be repaid and terminated in full at or before the Closing, make any loans, advances or capital contributions to, or investments in, any other Person or forgive, cancel or compromise any material indebtedness of any Person, other than routine business expense advances to Employees in the ordinary course of business; (l) materially change any method of accounting or accounting practice or policy used by the Company Group or revalue any of its material assets (whether tangible or intangible), including writing up, down or off the value of any material asset, other than as required by GAAP, a Governmental Authority or Law, or as may be consistent with the Accounting Principles; (m) other than with respect to Taxes or Tax Returns of Seller (including consolidated federal or state Tax Returns of Seller) (A) make, revoke or change any Tax election; refrain from adopting election in respect of the Company Group (unless consistent with past practices of the Company Group), (B) change an annual accounting period, or changing adopt or change any accounting method with in respect of the Company Group, (C) file or amend any Tax Return to Taxes; refrain from filing any amended the extent relating to the Company Group (other than Tax Return; refrain from entering into any closing agreementReturns filed pursuant to Section 9.02(a) and, settling or compromising for the avoidance of doubt, Tax Returns of Seller), (D) settle any Tax claim or assessment; and refrain from consenting assessment to the extent relating to the Company Group, (E) consent to any extension or waiver of the limitation period applicable to any material Tax claim or assessment solely relating to the Company Group or (F) cause the Company Group to assume, become liable for or agree to pay the Taxes of any other Person; (n) enter into any collective bargaining agreement, whether written or oral; (o) (A) increase the headcount of Service Providers by more than five percent (excluding any increase resulting from any Service Provider or Potential Transferee becoming an Employee) or hire or engage the services of any individual as a Service Provider who would have a title of Vice President or higher (other than, in each case, hiring or engaging the services of any individual as a Service Provider to replace any individual whose services terminate), (B) terminate the service of any Service Provider other than for performance or “cause” who has a title of Vice President a or higher or grant any severance or termination pay to any Service Provider except such severance or termination pay that does not exceed the greater of (x) $200,000 and (y) one and one-half times the severance or termination pay that would be provided pursuant to written agreements outstanding or policies existing on the date hereof and made available to Purchaser prior to the date hereof, (C) implement or announce any employee layoffs, plant closings, reductions in force, furloughs, temporary layoffs, salary or wage reductions, work schedule changes or other such actions that would trigger the notification requirements of the WARN Act; (p) grant any increase in annual base salaries or base wage rates (as applicable) or target cash incentive compensation opportunities, or grant any increase in benefits under Seller Benefit Plans to Service Providers, except (A) as may be required by Law, (B) as may be required under agreements existing on the date hereof and made available to Purchaser prior to the date hereof, (C) for increases to (x) annual base salaries and base wage rates (as applicable) and (y) target cash incentive compensation opportunities, that in each case, do not, with respect to Taxes; all Service Providers in each case the aggregate, exceed three and a half percent (3.5%) of (1) the aggregate annual base salaries and base wage rates provided to all Service Providers for the extent taking such action would adversely affect immediately preceding fiscal year and (2) the Purchased Assets target cash incentive compensation opportunities applicable to all Service Providers for the immediately preceding fiscal year, or the Business (D) for any increases in a Postbenefits under broad-Closing Tax Periodbased Seller Benefit Plans that are generally applicable to employees of Seller or its Affiliates who are not Service Providers; (gq) pay and discharge all material Liabilities related establish, adopt, enter into, amend or terminate any Sponsored Company Benefit Plan with respect to any Service Provider, except (A) for the Purchased Assets as they become due and payable renewal of existing plans in the ordinary course of business, subject (B) pursuant to applicable Law or the terms of such Sponsored Company Benefit Plan or (C) for the entry into, establishment or adoption of a consulting or employment agreement (or similar agreement or arrangement) to replace a terminating or expiring consulting or employment agreement or arrangement on the same or more favorable terms to the Seller’s ability to pursue in good faith any bona fide disputesCompany Group; (hr) not sell(A) enter into or renew any Contract that, leaseif entered into on or prior to the date hereof, license, transfer, abandon, pledge, encumber would constitute a Material Contract (other than Permitted EncumbrancesI) of the types described in any of clause (ii), fail to maintain (iii), (iv), (vi), (vii), (viii), (ix), (x), (xi) that is a master agreement, (xiii), (xv), (xvi) or otherwise dispose (xviii) of Section 3.14(a) or (II) of the types described in any Purchased Assetsother clauses of Section 3.14(a), outside the ordinary course of business, in each case, other than the sale of Inventory and other dispositions of assets a renewal with less than 10% in price increase in the ordinary course of business consistent with past practice; and no other material modifications to terms that are adverse to the Company Group, or (iB) not (i) exclusively licensemodify or amend in any materially adverse manner or terminate, release, assign or transfer waive any Purchased Business Intellectual Property material obligation or right under any Material Contract or any Purchased Business Technology to Contract entered into in accordance with clause (A) of this Section 5.01(b)(xviii) or (C) exercise any Person material right under any Material Contract, other than in the case of clause (including any current or former employee or consultant of Seller or any contractor or commercial partner of SellerC); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business and in the case of clauses (A) and (B) the entry or modification in the ordinary course of Business to any Material Contract that is terminable on less than 30 days’ written notice with no penalty or post-termination obligation of the Company Group or any of its Affiliates; (s) incur any Indebtedness (described in clause (a), (b), (c), (l) or (m)) of the Company Group or sell Inventory or issue any debt securities, warrants, calls or other rights to acquire by debt securities of the Company Group other than (A) among members of the Company Group or, to the extent fully repaid on or before the Closing Date, with Seller or any of its Affiliates, (B) borrowings under any instruments of Indebtedness existing as of the date hereof that will be fully repaid at or before the Closing, (C) Indebtedness that will be fully repaid at or before the Closing or (D) in excess the ordinary course of consumption consistent business in an amount not to exceed $2,500,000 in the aggregate and for which incurrence after the date hereof Seller shall provide reasonably prompt notice to Purchaser; (t) (A) make or commit to make any capital expenditures other than those which do not exceed $250,000 individually or $1,000,000 in the aggregate, other than in accordance with past practices the Company Group’s capital expenditure long range plan included in Section 5.01(b)(xx) of the Seller Disclosure Schedule or (B) fail to make capital expenditures in an aggregate amount of at least $24,000,000 per year for the calendar year 2020 or at least $26,000,000 per year for subsequent years; (u) waive, release, assign, settle or compromise any claim, dispute or Proceeding other than settlements (A) solely for money in an amount payable by the Company Group not greater than $1,000,000 in the aggregate, (B) for which the Company Group’s sole obligation is to provide course credits or discounts to students or potential students in the ordinary course of business, which discounts and credits are de minimis in value and, individually and in the aggregate, are not material in value to the Company Group taken as a whole or (C) for a combination of remedies described in clauses (A) and (B); (kv) not manufacturerelinquish, terminate or fail to renew any material Educational Approval; (w) between the Balance Sheet Time and the Closing, (A) make or pay any dividends or distributions, (B) incur or pay off any Indebtedness, (C) incur or pay any Transaction Expenses or (D) take any action, or enter into fail to take any purchase commitments to purchase, Inventory in amounts action outside the ordinary course of business, in each case, which action or failure to act would actually decrease the Purchase Price relative to the Estimated Purchase Price; (lx) use commercially reasonable efforts not fail to keep current and in full force and effect or renew make any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except change in the ordinary course of business consistent with past practice; (p) comply manner in all material respects with all Laws applicable to which the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could Company Group markets its goods and services which would reasonably be expected to delay violate applicable Law or Educational Law or any Educational Approval in any material respect or otherwise materially change the Closing; providedmanner in which the Company Group extends discounts or credits (including scholarships), however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including otherwise materially reduce the Business, in their reasonable discretion provided it shall comply with the terms list price of goods or services of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly Company Group; or (y) agree in writing or indirectly, otherwise to take any of the right to control or direct the operations of Seller prior to Closingactions described in clauses (i) through (xxiv) above.

Appears in 1 contract

Samples: Membership Interest Purchase Agreement (Laureate Education, Inc.)

Conduct of the Business. From The Seller and the date of this Agreement Shareholders covenant and agree with the Buyer that from and after the Effective Date until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required authorized by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or expressly consented to in writing by Purchaser the Buyer, the Seller and the Shareholders (which consent shall not be unreasonably withheldas applicable) shall, conditioned or delayed), Seller shalland to the extent the same would affect the Proprietary Rights: (a) operate and carry on the Business and the Transferred Assets only in the usual, regular and ordinary course of business with a view to maintaining the goodwill that the Seller now enjoys and, to the extent consistent with past practicesuch operation, will use all reasonable efforts to preserve intact its present business organization, keep available the services of its employees and preserve its relationships with its customers, suppliers, jobbers, distributors and other Persons having business relations with it; (b) use commercially all reasonable efforts to preserve intact maintain the goodwill Transferred Assets in a state of the Business repair, order and the relationships of Seller condition consistent with its customers, vendors, suppliers, Business Employees and others having ordinary course of business relations in connection with the Business; (c) continue to maintain the Books, Records its books of account and Files of Seller and its Affiliates exclusively or primarily related records relating to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to in accordance with the Seller’s ability usual accounting practices applied on a consistent basis; (d) comply with all statutes, laws, orders and regulations applicable to pursue it and to the conduct of the Business; (e) not sell, assign, transfer, lease or otherwise dispose of any Proprietary Rights, Equipment or any of the other Transferred Assets except for dispositions of Inventories for value in good faith the usual and ordinary course of business or other than to the Buyer pursuant to the terms of this Agreement; (f) preserve and maintain all rights that it now enjoys in and to the Proprietary Rights and not sell, assign, transfer, lease or otherwise dispose of any bona fide disputesProprietary Rights other than to the Buyer pursuant to the terms of this Agreement; (g) not mortgage, pledge or otherwise create a security interest in any of the Transferred Assets or permit there to be created or exist any Liens thereon other than Permitted Liens; (h) not sellenter into any contract, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail commitment or lease in relation to maintain or otherwise dispose the Business that is out of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practicethe Business or, if effective on the date hereof, would be required to be disclosed in Schedule 3.05(a) of the Disclosure Schedule; (i) not (iamend or modify any of the Contracts and Other Agreements disclosed in Schedule 3.05(a) exclusively license, assign or transfer any Purchased Business Intellectual Property of the Disclosure Schedule or any Purchased Business Technology other contract, commitment, lease or other agreement that would, if entered into on the date hereof, be required to be disclosed on any Person (Schedule to this Agreement, including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technologythe Disclosure Schedule; (j) not grant consent to the termination of any allowances of the Contracts and Other Agreements disclosed in Schedule 3.05(a) of the Disclosure Schedule or discounts on Products outside waive any of the ordinary course of business or sell Inventory in excess of consumption consistent Seller’s rights with past practices in the ordinary course of businessrespect thereto; (k) not manufacture, grant any increase in the compensation or enter into rate of compensation or commissions or bonuses payable to or severance obligations for any purchase commitments to purchase, Inventory of employees or in amounts outside any bonus plan and not transfer or otherwise change any of the ordinary course terms or conditions of businessemployment of any of the employees except the bonuses contemplated in Section 6.02; (l) use commercially reasonable efforts not fail permit any insurance policy naming it as a beneficiary or a loss payee relating to keep current and the Business or the Transferred Assets to be canceled or terminated or any of the coverage thereunder to lapse unless simultaneously with such termination or cancellation replacement policies providing substantially the same coverage are in full force and effect or renew any of the material Permits related to the Business;effect; and (m) not amendpay when due all accounts payable, modifyall payments required by any of the Contracts and Other Agreements, cancel or terminate any Assigned Contract (and all Taxes other than terminations or expirations at Taxes that are being contested in good faith and for which adequate reserves against the end Transferred Assets exist and which would not result in a Lien being imposed on any of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingTransferred Assets.

Appears in 1 contract

Samples: Asset Purchase Agreement (DXP Enterprises Inc)

Conduct of the Business. From (a) Except (i) to the date of this Agreement until the Closing (extent compelled or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, (ii) as otherwise permitted or contemplated by this Agreement, (iii) as set forth on Schedule 7.1 in Section 12.1(a) of the Seller Atmel Disclosure Schedule, as contemplated by Schedule or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (iv) with the prior written consent of Buyer (which consent shall not be unreasonably withheld, conditioned withheld or delayed), Seller during the period from the date hereof to the Closing Date, Atmel shall: (a) operate , and carry on shall cause the Selling Subsidiaries and Atmel UK to, and Atmel shall, after the Incorporation Date, cause Vault-IC to, conduct the Business in the ordinary course of business, and to the extent consistent therewith (x) use commercially reasonable efforts to maintain its assets and properties and to preserve its current relationships with customers, employees, suppliers and others doing business consistent with past practice; it, (by) maintain its books and records in the ordinary course of business, and (z) use commercially reasonable efforts to preserve intact the goodwill and ongoing operations of their business. (b) Without limiting the generality of the Business and the relationships of Seller with its customersforegoing, vendors, suppliers, Business Employees and others having business relations with the Business; except (ci) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect compelled or required by applicable Law, (ii) as otherwise permitted or contemplated by this Agreement, (iii) as set forth in Section 12.1(b) of the Purchased Assets Atmel Disclosure Schedule or (iv) as consented to in writing by Buyer (which consent shall not be unreasonably withheld or delayed), during the Business in a Postperiod from the date hereof to the Closing Date, Atmel shall not, and shall cause the Selling Subsidiaries, Atmel UK, Atmel France and, after the Incorporation Date, Vault-Closing Tax Period;IC not to: (gi) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of businessdivest, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain sell or otherwise dispose of, or encumber any Asset or any asset of any Purchased Assetsthe Transferred Entities, other than the sale sales of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign products or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices services in the ordinary course of business; (kii) not manufactureenter into or adopt any Benefit Plan or employment or severance agreement (including GPEC Agreements) with respect to Employees, or enter into amend or terminate any purchase commitments Benefit Plan, except to purchasethe extent required by applicable Law or Contract; (iii) make any change in the rate of compensation, Inventory commission, bonus, or other direct or indirect remuneration payable, or agree to pay, conditionally or otherwise, any bonus, incentive, retention, change in control payment or other compensation, retirement, welfare, fringe or severance benefit or vacation pay, to or in respect of any Employee, except in the ordinary course of business or to the extent required by any applicable Law; (iv) file or cause to be filed any material amended Tax Return with respect to the Business or the Transferred Entities or agree to extend the statute of limitations in respect of any material amount of Taxes; (v) increase the amount reserved for, or reserve any new amounts outside for, payment of any contingent Tax liability with respect to the Business except in the ordinary course of business; (lvi) use commercially reasonable efforts not fail change material accounting policies or procedures of the Business except to keep current and in full force and effect the extent required to conform with UK GAAP or renew applicable Law; (vii) change the Business’ fiscal year or the accounting reference date of the Transferred Entity Employees; (viii) amend the memorandum or articles of association of Atmel UK or, after the Incorporation Date, the Vault-IC Articles of Association; (ix) create or permit the creation of any Lien (except any Permitted Lien) over, encumber, transfer or sell any UK Ordinary Shares to a third party or, after the Incorporation Date, create or permit the creation of any Lien (except any Permitted Lien) over, encumber, transfer or sell any of the material Permits related Vault-IC Shares to the Businessa third party; (mx) not amendcreate or permit the creation of any material Lien (except any Permitted Lien) over, modifytransfer or sell to any Affiliate of Atmel or a third party the Transferred IPR, cancel the Transferred Equipment or terminate the ACP Equipment outside of the Ordinary Course; (xi) incur, assume or guarantee any Assigned Contract (indebtedness for borrowed money from a third party other than terminations or expirations at trade indebtedness incurred in the end Ordinary Course, current liabilities incurred in the Ordinary Course, liabilities under Contracts entered into in the Ordinary Course, and borrowings under lines of the stated term after credit existing as of the date hereof);; or (nxii) not waiveauthorize, releaseagree, assign resolve or modify consent to any material benefit or claim under any Assigned Contract;of the foregoing. (oc) not grant any Business Employee any increase Nothing contained in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, this Agreement shall give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give PurchaserBuyer, directly or indirectly, the right rights to control or direct the operations of Seller the Business or Transferred Entities prior to Closingthe Closing Date. Notwithstanding anything to the contrary in this Agreement, no consent of Buyer shall be required with respect to any matter set forth in this Section 12.1 or elsewhere in this Agreement to the extent that the requirement of such consent would violate or conflict with applicable Law.

Appears in 1 contract

Samples: Share and Asset Purchase and Sale Agreement (Atmel Corp)

Conduct of the Business. From Seller covenants to Buyer that, from the date of this Agreement until hereof to the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)Closing, Seller shall: (a) operate will conduct and carry on use the Business Business, the Purchased Assets, and the Assumed Liabilities only in the ordinary course of business and consistent with past practice. Without limiting the generality of the foregoing, Seller hereby covenants to Buyer that, solely insofar as the Business, the Assumed Liabilities, and the Purchased Assets are concerned, Seller will: (a) use commercially reasonable efforts to preserve the business and sales organization of Seller intact, keep available the services of the present officers and directors of Seller and preserve intact their relationship and goodwill with respective suppliers, customers, employees, creditors and others having business or other dealings with the Business, consistent with past practices; (b) maintain its books of account and records in its usual, regular and ordinary manner, consistent with its past practice; (c) maintain all Business Intellectual Property in the same standing as exists on the date hereof and continue the prosecution of all applications therefor; (d) timely perform and comply with, in all material respects, the provisions of all contracts, commitments or other obligations relating to or affecting the Purchased Assets or the Business; (e) maintain and keep the Purchased Assets in at least as good condition and repair, ordinary wear and tear excepted, as the condition and repair of the Purchased Assets as of the date hereof; (f) pay when due (including any lawful extensions) all Taxes imposed on it or its income, profit or assets or otherwise required to be paid by it, and pay when due any liability or charge which, if unpaid, might become a lien or charge upon any of the Purchased Assets, except to the extent any such Tax, liability or charge is being contested in good faith through appropriate proceedings; (g) maintain in full force and effect and comply with, in all material respects, all Governmental Permits, certificates, licenses, approvals and authorizations required under all laws in connection with the Business, and comply in all material respects with all laws, rules and regulations applicable to the Business; (h) confer on a regular and frequent basis with one or more representatives of Buyer to report operational matters of materiality and the general status of ongoing operations; (i) duly comply in all material respects with all applicable laws, regulations and orders and shall not take or omit to take any action that would cause a default under or material breach of any Contract, commitment or obligation of Seller; (j) maintain with adequately capitalized insurance companies insurance coverage for its assets and its businesses in such amounts and against such risks and losses as are consistent with past practice; (bk) use commercially reasonable efforts not enter into or amend any employment (excluding any changes to preserve intact salaries of less than five percent (5%) per employee and one percent (1%) in the goodwill aggregate) severance, special pay arrangement with respect to termination of employment or other similar arrangements or agreements with any Business Employees; (l) not increase or decrease the aggregate number of the Business and Employees by more than five percent (5%) without the relationships prior written permission of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the BusinessBuyer; (cm) continue not enter into any agreement with a supplier providing for delivery to maintain Seller of materials in amounts in excess of those which Seller, using sound business judgment, reasonably project to be used during the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductednext calendar quarter; (en) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereofnot incur or agree to incur any Indebtedness; (fo) refrain from making, changing not incur or revoking agree to incur any Tax election; refrain from adopting liability or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering obligation or enter into any closing agreementagreement or transaction, settling except renewals or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver replacements of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets existing Contracts in the ordinary course of business consistent with past practiceon substantially the same or more favorable terms; (ip) not (i) exclusively licensemortgage, assign pledge, sell, lease, distribute, dispose of or transfer otherwise encumber or convey any Purchased Business Intellectual Property interest in any asset or any Purchased Business Technology to any Person (including any current or former employee or consultant property of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices other than in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not adopt or modify or pay any bonus, pension, profit sharing or other compensation plan, other than budgeted increases for Business Employees or enter into or modify any contract or terms and conditions of employment; (r) not declare or pay any dividends or distribute cash or securities to its stockholders, make any direct or indirect redemption, purchase or other acquisition of any of its capital structure, or issue any additional shares of its capital stock, including, any change in authorized, issued or outstanding capital stock or any issuance, subdivision or reclassification of any shares of capital stock or issue any options, warrants, rights or other capital stock equivalents; (s) not amend its certificate or articles of incorporation or bylaws; (t) not make any capital expenditures in excess of $10,000; (u) not waive, release or transfer any right greater than $10,000 in aggregate value; (v) not pay, compromise or settle any claim, action, suit or proceeding; and (w) not take any material actions that other action which could reasonably be expected to delay the Closing(i) result in a Material Adverse Effect; provided, however, except as expressly provided or (ii) a breach of any representation or warranty contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller Agreement if taken prior to Closingthe date hereof.

Appears in 1 contract

Samples: Acquisition Agreement (C-Cor Inc)

Conduct of the Business. From Seller covenants to Buyer that, from the date hereof to the Closing, Seller will conduct and use the Business, the Purchased Assets, and the Assumed Liabilities only in the ordinary course of this Agreement until business and consistent with past practice. Without limiting the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 generality of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)foregoing, Seller shallhereby covenants to Buyer that, solely insofar as the Business, the Assumed Liabilities, and the Purchased Assets are concerned, Seller will: (a) operate use best efforts to preserve the business and carry sales organization of Seller intact, keep available the services of the present officers and directors of Seller and preserve intact their relationship and goodwill with respective suppliers, customers, employees, creditors and others having business or other dealings with the Business; (b) maintain its books of account and records in its usual, regular and ordinary manner, consistent with its past practice; (c) maintain all Business Intellectual Property in the same standing as exists on the date hereof and continue the prosecution of all applications therefore; (d) timely perform and comply with, in all material respects, the provisions of all contracts, commitments or other obligations relating to or affecting the Purchased Assets or the Business; (e) maintain and keep the Purchased Assets in at least as good condition and repair, ordinary wear and tear excepted, as the condition and repair of the Purchased Assets as of the date hereof; (f) pay when due all Taxes imposed on it or its income, profit or assets or otherwise required to be paid by it, and pay when due any liability or charge which, if unpaid, might become a lien or charge upon any of the Purchased Assets, except to the extent any such Tax, liability or charge is being contested in good faith through appropriate proceedings; (g) maintain in full force and effect and comply with, in all material respects, all Governmental Permits, certificates, licenses, approvals and authorizations required under all laws in connection with the Business, and comply with all laws, rules and regulations applicable to the Business; (h) confer on a regular and frequent basis with one or more representatives of Buyer to report operational matters of materiality and the general status of ongoing operations; (i) duly comply in all material respects with all applicable laws, regulations and orders and shall not take or omit to take any action that would cause a default under or material breach of any Contract, commitment or obligation of Seller; (j) maintain with adequately capitalized insurance companies insurance coverage for its assets and its businesses in such amounts and against such risks and losses as are consistent with past practice; (k) not enter into or amend any employment (excluding any changes to salaries of less than five percent), severance, special pay arrangement with respect to termination of employment or other similar arrangements or agreements with any Business Employees; (l) not increase or decrease by any act of Seller the aggregate number of the Business Employees by more than 5% without the prior written permission of Buyer; (m) not enter into any agreement with a supplier providing for delivery to Seller of materials in amounts in excess of those which Seller, using sound business judgment, reasonably project to be used during the next calendar quarter; (n) not incur or agree to incur any Indebtedness other than in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts practices to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with operate the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts in no event to maintain exceed an aggregate amount of $100,000; provided, however, that nothing in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the this Agreement shall limit Seller’s ability to pursue obtain financing on an as needed basis in good faith any bona fide disputesorder to fund the operations of Seller through the Closing; which amounts, if any, shall be repaid at Closing pursuant to Section 2.6(c)(v); (ho) not sellincur or agree to incur any liability or obligation or enter into any agreement or transaction, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain except renewals or otherwise dispose replacements of any Purchased Assets, other than the sale of Inventory and other dispositions of assets existing Contracts in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign on substantially the same or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practicemore favorable terms; (p) comply not mortgage, pledge, sell, lease, distribute, dispose of or otherwise encumber or convey any interest in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies any asset or property of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andSeller; (q) not adopt or modify or pay any bonus, pension, profit sharing or other compensation plan, other than budgeted increases for Business Employees or enter into or modify any contract or terms and conditions of employment; (r) not declare or pay any dividends or distribute cash or securities to its shareholders, make any direct or indirect redemption, purchase or other acquisition of any of its capital structure, or issue any additional shares of its capital stock, including, any change in authorized, issued or outstanding capital stock or any issuance, subdivision or reclassification of any shares of capital stock or issue any options, warrants, rights or other capital stock equivalents; (s) not amend its certificate or articles of incorporation or bylaws; (t) not make any capital expenditures in excess of $50,000; (u) not waive, release or transfer any right greater than $50,000 in aggregate value; (v) not pay, compromise or settle any claim, action, suit or proceeding in excess of $50,000; and (w) not take any material actions that could reasonably be expected other action which would result in a Material Adverse Effect with respect to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectlySeller, the right to control Purchased Assets or direct the operations of Seller prior to ClosingAssumed Liabilities.

Appears in 1 contract

Samples: Acquisition Agreement (C Cor Net Corp)

Conduct of the Business. From Rice covenants and agrees that from and after the date execution of this Agreement and until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except (i) as expressly contemplated by this Agreement, (ii) as required by applicable LawLaw or (iii) subject to Section 5.3, as set forth on Schedule 7.1 with the prior written consent of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallPartnership: (a) operate Rice will not, and carry will not permit any of its Subsidiaries to: (i) sell, transfer, assign, convey or otherwise dispose of any of the Conveyed Interests; (ii) conduct any of the Business through any Person other than the Rice Water Entities (other than as contemplated by the Secondment Agreement and the Omnibus Agreement); (iii) allow any Permits material to the Business to terminate or lapse other than expirations in accordance with their respective terms, in which case Rice shall (and shall cause the applicable subsidiary to) use its commercially reasonable efforts to obtain an extension or replacement of such expired Permit if necessary for the Business (iv) amend the Organizational Documents of any Rice Water Entity; (v) utilize any Water Asset for any purpose other than in the ordinary course of business (including emergency operations) consistent with past practices in connection with the Business; (vi) permit any Lien to be imposed or granted or to exist on the Conveyed Interests other than the Rice Midstream Loan Liens that will be released at Closing and Permitted Liens; (vii) permit any of the Rice Water Entities to: (A) sell, transfer, assign, convey or otherwise dispose of any of the Water Assets except sales of inventory for fair value in the ordinary course of operating the Business consistent with past practices; (B) acquire (including by merger, consolidation or acquisition of equity interest) any Person, make an investment in or a loan to any Person (other than intercompany advances made in the ordinary course of business consistent with past practices), or acquire (including making capital expenditures or leasing (other than leases of equipment made in the ordinary course of operating the Business consistent with past practices cancelable by Rice or the Rice Water Entities upon 90 days’ or less prior notice without penalty)) any assets with an aggregate value in excess of $2,500,000 individually or in combination with any other assets acquired pursuant to this clause (B); (C) enter into any joint venture, partnership or similar arrangement; (D) incur, permit to exist, issue, repay, redeem or repurchase any Indebtedness or capital leases or issue any debt securities or assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any Person, or make any loans or advances, or delay or postpone beyond the applicable due date the payment of accounts payable or other liabilities other than (A) endorsements of checks for deposit, (B) causing the issuance of letters of credit and performance bonds in the ordinary course of operating the Business consistent with past practice, and (C) Indebtedness under the Rice Midstream Credit Facility for which the Rice Water Entities are released of any and all obligations and Liabilities at Closing; (E) permit any Lien to be imposed or granted or to exist on the Water Assets other than the Rice Midstream Loan Liens that will be released at Closing and Permitted Liens; (F) issue, sell, pledge, dispose of, grant, encumber or otherwise transfer, or authorize the issuance, sale, pledge, disposition, grant, repurchase, redemption, encumbrance or other transfer, of any equity interest or make any commitment with respect to any equity interest or declare, set aside or make any distributions or dividends, or make any capital contributions, in respect of any equity interest, except for distributions in respect of the Conveyed Interests of cash, cash equivalents and trade receivables; (b) Rice will, and will cause each of the Rice Water Entities to, use commercially reasonable efforts to preserve intact maintain the goodwill of the Business applicable Water Assets in all material respects in such working order and the relationships of Seller condition as is consistent with its customers, vendors, suppliers, Business Employees and others having business relations with the Businesspast practice; (c) continue Rice will, and will cause each of the Rice Water Entities to, use commercially reasonable efforts to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to conduct the Business on a basis in all material respects in the ordinary course of operating the Business consistent with past practicepractices, including preserving intact the goodwill and relationships with customers, suppliers and others having business dealings with them with respect thereto; (d) Rice will, and will cause the Rice Water Entities to, comply in all material respects with all applicable Laws relating to them; and (de) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerRice will, and will cause the Rice Water Entities to, use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation full force without interruption its present insurance policies or comparable insurance coverage of the Business as presently conducted; (e) perform all of Seller’s material obligations under and the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Water Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 1 contract

Samples: Purchase and Sale Agreement

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of Date, except as contemplated by this Agreement in accordance connection with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 the organization of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)New Jetride, Seller shall: (a) operate , and carry on Parent shall cause Seller to, conduct the Business in the ordinary course Ordinary Course of business consistent with past practice; (b) Business, use its commercially reasonable efforts to preserve intact the goodwill business organization and relationships with third parties and keep available the services of the present employees of the Business. Without limiting the generality of the foregoing, from the date hereof until the Closing Date, except as set forth on Schedule 5.01, unless Buyer otherwise agrees in writing, Seller will, and Parent will cause Seller to: (a) use its commercially reasonable efforts to cause its current insurance (or reinsurance) policies not to be canceled or terminated or any of the coverage thereunder to lapse, unless simultaneously with such termination, cancellation or lapse, replacement policies providing coverage at least equal to or substantially similar coverage to that provided under the canceled, terminated or lapsed policies for substantially similar premiums are in full force and effect; (b) use its commercially reasonable efforts to carry on the Business in the same manner as presently conducted and the to keep Seller’s business organization and properties intact, including its present business operations, physical facilities, working conditions and employees and its present relationships of Seller with its customerslessors, vendors, suppliers, Business Employees licensors and customers and others having business relations with it, promote the Business;smooth transition of the Business to Buyer, encourage employees to continue their employment with Seller or, if applicable, New Jetride until and through the Closing, promptly notify Buyer of any change in any officers or directors of Seller, and cause New Jetride to be duly organized under the laws of the State of Delaware under the name “Jetride, Inc.”, to be qualified to transact business in such jurisdictions where the nature or its business or ownership of its properites require such qualification, to be capitalized with the Contributed Assets and to be subject only to the New Jetride Assumed Liabilities. (c) continue to maintain the Books, Records and Files material assets of Seller in good repair, order and condition consistent with current and planned needs (normal wear and tear excepted), replace in accordance with past practices its Affiliates exclusively inoperable, worn out or primarily related obsolete assets with assets of good quality consistent with prudent practices and current needs, and in the event of a casualty, loss or damage to any of such assets or properties prior to the Business on a basis Closing Date, whether or not Seller is insured, either repair or replace such damaged property or use the proceeds of such insurance in such other manner as mutually agreed upon by Seller and Buyer, and make all capital expenditures consistent with past practice; andpractices and Seller’s current plans for continuing operations and growth; (d) continue to make all necessary maintain the books, accounts and material filings records of Seller in accordance with past custom and payments with Governmental Authorities practice as used in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation preparation of the Business as presently conductedSeller Financial Statements; (e) perform comply with all material legal requirements and contractual liabilities applicable to the operations and Business of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereofSeller and pay all applicable Taxes when due and payable; (f) refrain cooperate with Buyer, use commercially reasonable efforts and take such actions to cause the conditions to Buyer’s obligation to close to be satisfied (including, without limitation, the execution and delivery of all agreements contemplated hereunder to be so executed and delivered, cooperating in the making and obtaining of all third party and governmental notices, filings, authorizations, approvals, consents, releases and terminations, and causing New Jetride to be duly organized and capitalized with the Contributed Assets and to be subject only to the New Jetride Assumed Liabilities; (g) deliver to Buyer from makingtime to time, changing as promptly as practicable following the end of each month, an unaudited monthly balance sheet, income statement and statement of cash flow for the immediately preceding month, prepared using the same accounting principles and practices as used in the preparation of the Seller Financial Statements; (h) except in the Ordinary Course of Business, not make or revoking change any Tax election; refrain from adopting , change an annual accounting period, adopt or changing change any accounting method with respect to Taxes; refrain from filing method, file any amended Tax Return; refrain from entering return of Seller, enter into any closing settlement agreement, settling or compromising settle any Tax claim or assessment; and refrain from consenting assessment relating to Seller, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment with respect relating to Taxes; in each case Seller, or take any other similar action, or omit to take any action relating to the extent taking such action would adversely affect the Purchased Assets filing of any Tax Return or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose payment of any Purchased AssetsTax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other than action or omission would have the sale effect of Inventory and other dispositions increasing the present or future Tax liability or decreasing any present or future Tax asset of assets in the ordinary course of business consistent with past practiceSeller, New Jetride or Buyer; (i) except in connection with the organization and capitalization of New Jetride as contemplated herein, not (i) exclusively licenseissue, assign sell or transfer any Purchased Business Intellectual Property notes, bonds or other debt securities, any Purchased Business Technology equity securities, any securities convertible, exchangeable or exercisable into debt or equity securities, or warrants, options or other rights to any Person (including any current acquire debt or former employee or consultant equity securities of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property New Jetride or any Purchased Business Technologyprofits interests, economic interests or similar rights; (j) except as contemplated by this Agreement, not grant change or authorize any allowances change in its articles of incorporation or discounts on Products outside code of regulations or the ordinary course certificate of business incorporation or sell Inventory in excess bylaws of consumption consistent with past practices in the ordinary course of businessNew Jetride once such documents have been created; (k) not manufactureacquire any other business or Person (or any significant portion or division thereof), whether by merger, consolidation or enter into reorganization or by purchase of assets or stock or other equity securities or acquire any purchase commitments to purchase, Inventory in amounts outside the ordinary course of businessother material assets; (l) use commercially reasonable efforts not fail enter into or establish or, except as required by the express terms thereof and except in the Ordinary Course of Business, make or grant or promise any increase in any employee benefit plan or arrangement, or amend or terminate any existing employee benefit plan or arrangement, or make any contribution to keep current any employment or labor agreement or any employee pension benefit plan or any employee welfare benefit plan which covers employees of Seller; not make or guarantee any loans to employees; and not make, grant or promise any bonus or any wage, salary or compensation increase in full force and effect excess of $5,000 per year to any director, officer, employee or renew any sales representative, group of the material Permits related to the Businessemployees or consultant; (m) except for entering into Contracts and conducting normal operations in the Ordinary Course of Business, not amendtake any other action (or agree or commit to take any action) that, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term if taken after the date of the Seller Financial Statements and prior to the date of this Agreement, would require disclosure under Section 3.07 hereof); (n) not (i) settle or compromise any claims or litigation, (ii) modify or amend in any respect or terminate or waive any material right or benefit under any Contracts, or (iii) waive, release, release or assign any rights or modify any material benefit or claim under any Assigned Contractclaims; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in connection with the ordinary course organization of business consistent with past practiceNew Jetride, not adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization; (p) comply not agree or commit to do any of the foregoing. Seller will not (x) take or agree or commit to take any action that would make any representation and warranty of Seller hereunder inaccurate in all material respects with all Laws applicable to the Business andany respect at, promptly following receipt thereof, give to the Purchaser copies or as of any notice received from time prior to, the Closing Date or (y) omit or agree or commit to omit to take any Governmental Authority or other Person alleging any violation of action necessary to prevent any such Laws; and (q) not take representation or warranty from being inaccurate in any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingrespect at any such time.

Appears in 1 contract

Samples: Purchase Agreement (Airnet Systems Inc)

Conduct of the Business. From (a) The Sellers will cause each Company to, prior to the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallClosing: (ai) operate and carry on the Business in the ordinary course of business consistent with past practicemaintain its corporate or limited liability company existence; (bii) other than as contemplated in the Transactions, use commercially all reasonable efforts to preserve intact its Business and its business organization intact, retain its Authorizations, preserve the existing contracts and goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees personnel and others having business relations with the Businessit; (ciii) continue to maintain conduct its Business only in the Booksordinary course (including without limitation the maintenance of inventory levels, Records supply levels and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis operational standards, consistent with past practice); (iv) use all reasonable efforts to operate in such a manner that the representations and warranties of the Sellers set forth in this Agreement on the date hereof will be true and correct as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date; and (dv) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) perform in a timely mannermanner all of its obligations under each Facility Lease. (b) Except as set forth on SCHEDULE 5.1(B), and use commercially reasonable efforts the Sellers will cause each Company not to, prior to maintain the Closing, without Buyer's prior written consent (such consent not to be unreasonably withheld or delayed): (i) change its method of management or operations in effect all any material Permits required for the ongoing operation of the Business as presently conductedrespect; (eii) perform all dispose of Seller’s or acquire any material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingassets or properties or make any commitment to do so, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable other than inventory in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputesits Business; (hiii) not sellincur, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail create or become obligated with respect to maintain any material liabilities or otherwise dispose of any Purchased Assetsmaterial obligations to purchase or supply goods or services, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (kiv) not manufacturesubject any of its properties or assets to any lien, security interest, mortgage or enter into any purchase commitments to purchaseencumbrance, Inventory in amounts outside each case other than in the ordinary course of businessits Business; (lv) use commercially reasonable efforts not fail modify, amend, cancel or terminate any Material Contract or Authorization; (vi) make any change in the compensation paid or payable to keep current any officer, director, employee, agent, representative or consultant as shown or required to be shown on a schedule hereto, or pay or agree to pay any bonus or similar payment (other than bonus payments or other amounts to which such Company is committed and which are expressly disclosed in full force and this Agreement or a schedule hereto); (vii) promote, change the job title of, or otherwise alter in any material respect the responsibilities or duties of, any management employee or officer of such Company; (viii) enter into any lease, contract or agreement that if in existence on the date hereof would have constituted a Material Contract; (ix) make any change in its accounting practices or procedures; (x) change its customer pricing, rebates or discounts, other than in the ordinary course of its Business; (xi) take any other action which could have a material adverse effect on the Business or renew the affairs, assets, condition (financial or otherwise) or prospects of any Company, or could adversely affect or detract from the value of the material Permits related to any Company, its assets or the Business; (mxii) not amend, modifyrenew, cancel expand or terminate assign any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, Facility Lease or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice;leases; or (pxiii) comply in all material respects with all Laws applicable commit to the Business and, promptly following receipt thereof, give to the Purchaser copies of do any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right foregoing referred to control or direct the operations of Seller prior to Closingin clauses (i) - (xii).

Appears in 1 contract

Samples: Asset Purchase Agreement (Skilled Healthcare Group, Inc.)

Conduct of the Business. From Pending the Merger. Between the date of this Agreement until the Closing (or until and the earlier termination of this Agreement in accordance with (1) the Effective Time and (2) the date upon which Purchaser’s designees constitute a majority of the members on the Company Board pursuant to Section 11.17.3 (the “Control Date”), except as expressly required by applicable Law(i) the Company shall, as set forth on Schedule 7.1 and shall cause the Company Subsidiaries to, conduct the businesses of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate Company and carry on the Business Company Subsidiaries only in the ordinary course of business and in a manner consistent with past practice; practice and in compliance in all material respects with all applicable Laws; (bii) the Company shall use commercially reasonable efforts to preserve substantially intact the goodwill business organization of the Business Company and the Company Subsidiaries, to keep available the services of the current officers, employees and consultants of the Company and the Company Subsidiaries and to preserve the current relationships of Seller the Company and the Company Subsidiaries with its customers, vendors, suppliers, Business Employees distributors, licensors, licensees and others having other persons with which the Company or any of the Company Subsidiaries has business relations relations; and (iii) the Company shall not, and shall cause the Company Subsidiaries not to, take any action with an intent to adversely affect or delay in any material respect the ability of either Parent or the Company to obtain any necessary approvals of any regulatory agency or other Governmental Authority required for the Transactions. In addition, and not in limitation of the foregoing, except as (x) expressly contemplated by this Agreement, (y) set forth in Section 6.1 of the Disclosure Schedule or (z) as required in compliance with all applicable Laws, neither the Company nor any of the Company Subsidiaries shall, between the date of this Agreement and the Effective Time, directly or indirectly, do, or propose to do, any of the following without the prior written consent of Parent (which shall not be unreasonably withheld or delayed): (a) amend or otherwise change its Articles of Incorporation or By-Laws or equivalent organizational documents; (b) issue, sell, pledge, dispose of, grant or encumber, or authorize the issuance, sale, pledge, disposition, grant or encumbrance of, any shares of any class of capital stock of the Company or any of the Company Subsidiaries, or any options, warrants, convertible securities or other rights of any kind to acquire any shares of such capital stock, or any other ownership interest (including any phantom interest and including any Company RSUs, Company Stock Options or voting securities), of the Company or any of the Company Subsidiaries, except for the issuance of Company Shares pursuant to exercises of the Company Stock Options or vesting of Company RSUs outstanding on the date hereof as disclosed in Section 4.3(b) in accordance with the Businessterms of those options or Company RSUs on the date of this Agreement; (c) continue to maintain transfer, lease, sell, pledge, license, dispose of or encumber any material assets or properties of the BooksCompany or any of the Company Subsidiaries, Records and Files except in the ordinary course of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; andbusiness; (d) continue declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to make all necessary and material filings and payments with Governmental Authorities in connection with any of its capital stock (other than dividends or distributions made by a Company Subsidiary to the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conductedCompany or another Company Subsidiary); (e) perform all reclassify, combine, split, subdivide or redeem, or purchase or otherwise acquire, directly or indirectly, any of Seller’s material obligations under the Assigned Contracts its capital stock, except (i) in accordance with agreements evidencing Company Stock Options, Company Restricted Stock or Company RSUs or (ii) Tax withholdings and exercise price settlements upon the terms thereofexercise of Company Stock Options or vesting of Company RSUs; (f) refrain from making(i) acquire, changing directly or revoking indirectly (including by merger, consolidation, or acquisition of stock or assets or any Tax electionother business combination), any corporation, partnership, other business organization or any division thereof or any other business, or any equity interest in any person; refrain from adopting (ii) incur any indebtedness for borrowed money or changing issue any accounting method debt securities, or assume, guarantee or endorse, or otherwise become responsible for (contingently or otherwise), the obligations of any person; (iii) make any loans, advances or capital contributions, except for employee loans or advances for travel expenses and extended payment terms for customers, in each case subject to applicable Law and only in the ordinary course of business; (iv) make, authorize, or make any commitment with respect to Taxes(A) any single capital expenditure or other expenditure that is, individually, in excess of $10,000 or (B) collectively, in the aggregate for the Company and the Company Subsidiaries taken as a whole in excess of $50,000; refrain from filing (v) make or direct to be made any capital investments or equity investments in any entity, other than investments in any wholly-owned Company Subsidiary; or (vi) enter into or amend any Contract, commitment or arrangement with respect to any matter set forth in this Section 6.1(f); (g) (i) increase the compensation payable or to become payable (including bonus grants) or increase or accelerate the vesting of any benefits provided, or pay or award any payment or benefit not required as of the date hereof by a Plan as existing on the date hereof and disclosed in Section 6.1(g) of the Company Disclosure Schedule, to its directors, officers or employees or other service providers, (ii) grant any severance or termination pay or benefits to, or enter into any employment, severance, retention, change in control, consulting or termination Contract with, any director, officer or other employee or other service providers of the Company or of any Company Subsidiary, subject to Section 6.1(g)(iv) below, other than offer letters, employment agreements, or consulting agreements entered into in the ordinary course of business that are terminable at will and without material liability to the Company or any Company Subsidiary, (iii) establish, adopt, enter into or amend any collective bargaining, work council, work force, bonus, profit-sharing, thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or other plan, Contract, trust, fund, policy or arrangement for the benefit of any director, officer or employee or other service providers, except as required by applicable Law or as necessary to maintain tax-qualified status or tax-favored treatment, or (iv) hire, elect or appoint any officer, director or employee holding a position of vice president or above; (h) except as publicly announced prior to the date hereof, announce, implement or effect any reduction in labor force greater than five percent (5%) of the total Company headcount, lay-off, early retirement program, severance program or other program or effort concerning the termination of employment of employees of the Company or any Company Subsidiary, other than routine employee terminations; (i) enter into a new line of business that (A) is material to the Company and the Company Subsidiaries taken as a whole, or (B) represents a category of revenue that is not discussed in Item 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2009; (j) make or change any election, adopt or change any accounting period or any accounting method, file any amended Tax Return; refrain from entering , enter into any closing agreement, settling or compromising settle any Tax claim or assessment; and refrain from consenting assessment relating to the Company or any of the Company Subsidiaries, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to the Company or any of the Company Subsidiaries, destroy or dispose of any books and records with respect to Taxes; Tax matters relating to periods beginning before the Effective Time and for which the statute of limitations is still open or under which a record retention agreement is in each case to place with a Governmental Authority if such election, adoption, change, amendment, agreement, settlement, surrender, consent, waiver, destruction or disposal would have the extent taking such action would adversely affect effect of materially increasing the Purchased Assets Tax liability of the Company or any of the Business in a Post-Closing Tax PeriodCompany Subsidiaries for any period ending after the Effective Time; (gk) pay and discharge all settle any material Liabilities related claim, arbitration or other Action; (l) enter into any Contract or amendment that would be a Company Material Contract, amend or modify in any material respect in a manner that is adverse to the Purchased Assets as they become due and payable Company or any Company Subsidiary, or consent to the termination of, any Company Material Contract, or waive or consent to the termination of the Company’s or any Company Subsidiary’s rights thereunder; (m) enter into any Contracts (i) under which Company or any Company Subsidiary grants or agrees to grant to any Third Party any assignment, license, release, immunity or other right with respect to any Company Intellectual Property (other than non-exclusive licenses of Software granted to customers in the ordinary course of businessbusiness consistent with Company’s or any Company Subsidiary’s past practices), subject (ii) under which Company or any Company Subsidiary establishes with any Third Party a joint venture, strategic relationship, or partnership pursuant to which Company agrees to develop or create (whether jointly or individually) any material Intellectual Property, products or services; (iii) that will cause or require (or purport to cause or require) the Surviving Corporation or Parent to (A) grant to any Third Party any license, covenant not to xxx, immunity or other right with respect to or under any of the Intellectual Property or Intellectual Property Rights of Parent; or (B) be obligated to pay any royalties or other amounts, or offer any discounts, to any Third Party (other than, with respect to the Seller’s ability Surviving Corporation only, in connection with non-exclusive licenses of Software, or Contracts for licenses to pursue in good faith any bona fide disputes; (h) not sellor other rights to use Systems, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets entered into in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waiveenter into or amend any Contract pursuant to which any other party is granted, releaseor that otherwise subjects the Company or any Company Subsidiary or Parent or any of its Subsidiaries to, assign any non-competition, “most-favored nation”, exclusive marketing or modify other exclusive rights of any material benefit type or claim under scope that materially restrict the Company or any Assigned ContractCompany Subsidiary or, upon completion of the Offer or any other Transaction, Parent or any of its subsidiaries, from engaging or competing in any line of business or in any location; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employmentlease, deferred compensation sublease or similar agreement license for real property or material operating lease; (p) enter into or amend or otherwise modify any Contract or arrangement with persons that are affiliates or are executive officers or directors of the Company, except as otherwise permitted or required by this Agreement; (q) commence any such employee material Action, except as otherwise permitted or required by this Agreement; (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate r) delay the employment payment of any such employee without causetrade payables to vendors and other Third Parties or accelerate the collection of trade receivables and other receivables by offering discounts or otherwise, except in each case outside the ordinary course of business consistent with past practicepractices; (ps) comply in all material respects with all Laws applicable to terminate, cancel, amend or modify any insurance coverage policy maintained by the Business andCompany or any of the Company Subsidiaries that is not simultaneously replaced by a comparable amount of insurance coverage; (t) enter into, promptly following receipt thereofparticipate in, give to the Purchaser copies of establish or join any notice received from any Governmental Authority new standards-setting organization, university or industry bodies or consortia, or other Person alleging any violation of any such Lawsmulti-party special interest groups or activities; andor (qu) not take otherwise make a commitment to do any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Merger Agreement (Microsemi Corp)

Conduct of the Business. (a) From the date of this Agreement hereof until the Closing (Date or until the earlier termination of this Agreement in accordance with Section 11.1(the “Interim Period”), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on Sellers will conduct the Business in the ordinary course Ordinary Course of business consistent with past practice; Business and use reasonable best efforts, to (bi) use commercially reasonable efforts to preserve intact the Intellectual Property and goodwill of the Business and the (including its relationships of Seller with its suppliers, contractors, licensors, manufacturers, customers, vendors, suppliers, Business Employees and distributors or others having business relations with the Business) and (ii) keep available the services of the employees of Sellers and others who provide substantial services with respect to the Business; provided, that, the Sellers will not be required to renew any design rights for Seller Products that have reached the end of their product cycles. (b) During the Interim Period, except as otherwise explicitly specified in this Agreement or as consented to in writing by the Buyer (such consent not to be unreasonably withheld, delayed or conditioned), the Sellers will: (i) not amend or propose to amend the respective certificates of incorporation, bylaws, certificates of formation or limited liability company agreements or other organizational documents of the Sellers in any manner; (cii) continue not issue, sell, pledge, transfer or dispose of, or agree to maintain the Booksissue, Records and Files sell pledge, transfer or dispose of, any shares of Seller and its Affiliates exclusively capital stock or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation other equity interests of the Business as presently conductedSellers; (eiii) perform all not (A) grant to any Business Employee an increase in compensation or benefits, except (I) for regularly scheduled pay increases, promotions, and bonuses made in the Ordinary Course of Seller’s material obligations under the Assigned Contracts in accordance with Business or (II) as may be required by Law or the terms thereofof any Benefit Plan; (B) modify or establish any Benefit Plan (or any arrangement that would constitute a Benefit Plan, if adopted), except to the extent required by Law or the terms of any Benefit Plan or contract; (C) terminate the employment of any Business Employee in the position of vice president or above or in a research and development or technical function, other than for cause; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (hiv) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain transfer or otherwise dispose of, any material property or assets of any Purchased Assetsthe Sellers, other than except for the sale sale, lease, transfer or disposition of Inventory and other dispositions of assets inventory in the ordinary course Ordinary Course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (mv) not amend, modify, cancel or terminate enter into any Assigned Contract (other than terminations or expirations at the end that would have been required to be disclosed on Schedule 2.13(a) if such Contract existed as of the stated term after the date hereof); (nvi) except for amendments in the Ordinary Course of Business, not waiveamend or terminate (except for a termination resulting from the expiration of a Contract in accordance with its terms or its earlier termination resulting from the exercise by a Seller of a right available to it under such Contract, release, assign including as a result of the exercise of any remedy for a breach or modify any material benefit or claim under default by the counterparty to such Contract) any Assigned Contract; (ovii) not grant amend, cancel, waive, modify, transfer or otherwise dispose of any Business Employee rights in, to or for the use of any increase Intellectual Property, except for terminations in compensation accordance with the respective terms of any of the foregoing that expire in accordance with their terms or otherwise in severance the Ordinary Course of Business; (viii) not acquire any business or termination payPerson, grant by merger or consolidation, purchase of assets or equity interests, or by any severance other manner, in a single transaction or termination paya series of related transactions; (ix) not form, contribute capital to, make a loan to or enter into any new employmenttransactions with, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practicea joint venture; (px) comply not make or change any method of accounting or auditing practice, including any working capital procedures or practices, other than changes required as a result of changes in all IFRS or applicable Law; (xi) not make or change any material respects election in respect of Taxes, settle, compromise or otherwise pay any material Tax in connection with all Laws applicable an audit, claim, investigation, inquiry or other proceeding in respect of Taxes, surrender any claim for refund of a material amount of Taxes, file an amended material Tax Return, or take any other position or action in respect of Taxes that would have the result of materially increasing Buyer’s liability for Taxes of the Business or related to the Business and, promptly following receipt Acquired Assets for any taxable period (or portion thereof, give to ) ending after the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such LawsClosing Date; and (qxii) not authorize, or commit or agree to take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided action described in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing5.1.

Appears in 1 contract

Samples: Asset Purchase Agreement (Turtle Beach Corp)

Conduct of the Business. From During the date of this period from the Agreement until the Closing (or Date and continuing until the earlier of: (a) the termination of this Agreement Agreement; (b) the date that Capricorn and its Affiliates have purchased the SPR and PCR Business in accordance with Section 11.1the Capricorn Repurchase Right (as defined below); (c) the date that the Deed of Share Charge (as defined below) is duly terminated; or (d) the date the amount of the Escrow Deposit (as defined in the Deed of Share Charge) reflects the Qualified Amount (as defined in the Deed of Share Charge), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as Parties shall and shall cause the Seller Group to (except to the extent expressly contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned Capricorn or delayed), Seller shall: (aCapricorn Sub in their reasonable discretion) operate and to carry on such businesses in the usual, regular and ordinary course, consistent with past practice, in substantially the same manner as heretofore conducted, to pay debts and Taxes when due subject to good faith disputes over such debts or Taxes, to pay or perform other obligations when due, and to use all reasonable efforts consistent with past practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees and preserve its relationships with customers, suppliers, distributors, licensors, licensees, and others having business dealings with it, to the end that its goodwill and ongoing Business shall be unimpaired. The Seller Parties shall and shall cause the Seller Group to promptly notify Capricorn and Capricorn Sub of any event or occurrence not in the ordinary course of business its business, consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign event which could have a Material Adverse Effect on any Seller Group Member or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay result in the representations and warranties of the Seller Parties not being true and correct as of the Closing; provided, however. Without limiting the foregoing, except as expressly provided in contemplated by this Section 7.1, nothing in this Section 7.1 shall prohibit Seller Agreement or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms prior written consent of the AgreementCapricorn or Capricorn Sub (such consent not to be unreasonably withheld), including this Section 7.1. Nothing contained herein no Seller Party shall give Purchaserdo, directly cause or indirectlypermit any of the following, nor shall any Seller Party cause or permit any Seller Group Member to do cause or permit any of the right to control or direct the operations of Seller prior to Closing.following:

Appears in 1 contract

Samples: Business Acquisition Agreement (China Medical Technologies, Inc.)

Conduct of the Business. From (a) During the Pre-Closing Period, except as otherwise contemplated by the Transaction Documents or required by applicable law, Seller shall, in respect of the Transferred Assets and the Acquired Business, use commercially reasonable efforts to: (i) operate and conduct the Acquired Business in the ordinary course of business and in the same manner as such operations have been conducted prior to the date of this Agreement until Agreement; (ii) (A) preserve intact its current business organization, (B) keep available the services of the Acquired Business employees, (C) maintain its relations and good will with all suppliers, customers, landlords, creditors, licensors, licensees, employees, independent contractors and other Persons having business relationships with Seller, and (D) promptly repair, restore or replace any Transferred Assets that are destroyed or damaged; (iii) comply with all material legal requirements and contractual Liabilities applicable to the operation of the Acquired Business and pay all applicable Taxes with respect thereto when due and payable; (iv) (A) confer regularly with Purchaser concerning operational matters relating to the Acquired Business and the Transferred Assets and (B) otherwise report regularly to Purchaser concerning the status of the Transferred Assets and the Acquired Business; and (v) notify Purchaser immediately of any inquiry, proposal or offer from any Person relating to any Acquisition Proposal. (b) During the Pre-Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Period, except as expressly otherwise contemplated by the Transaction Documents or required by applicable Lawlaw, as set forth on Schedule 7.1 Seller shall not, without the prior written approval of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent approval shall not be unreasonably withheld, conditioned or delayed), Seller shall) take any of the following actions with respect to the Transferred Assets or the Acquired Business: (ai) operate and carry on the Business in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships except for sales or transfers of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable Products in the ordinary course of business, subject sell or otherwise transfer, or agree, commit or offer (in writing or otherwise) to sell or otherwise transfer any interest in the Seller’s ability Transferred Assets or the Acquired Business or any interest in or right relating to pursue in good faith any bona fide disputessuch interest; (hii) not sellpermit, leaseor agree, licensecommit or offer (in writing or otherwise) to permit, transferany interest in the Transferred Assets or the Acquired Business to become subject, abandondirectly or indirectly, pledge, encumber to any Lien (other than Permitted EncumbrancesLiens), fail to maintain ; (iii) except for sales or otherwise dispose transfers of any Purchased Assets, other than the sale of Inventory and other dispositions of assets Seller Products in the ordinary course of business consistent with past practicebusiness, transfer, sell, lease, license or otherwise convey or dispose of any of the Transferred Assets; (iiv) not (i) exclusively license, assign effect or transfer any Purchased Business Intellectual Property or any Purchased Business Technology become a party to any Person (including any current or former employee or consultant transaction in respect of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technologyan Acquisition Proposal; (jv) not grant terminate (other than by expiration) or amend or modify (other than by automatic extension or renewal if deemed an amendment or modification of any allowances such contract) in any material respect any Transferred Contract; (vi) enter into any Contract relating to the Acquired Business or discounts on Products outside the ordinary course Transferred Assets or permit any of business or sell Inventory in excess of consumption consistent with past practices the Transferred Assets to become bound by any Contract, other than in the ordinary course of business; (kvii) not manufactureincur, assume or otherwise become subject to any Liability with respect to the Acquired Business or the Transferred Assets, except for liabilities (of the type required to be reflected in the “liabilities” column of a balance sheet prepared in accordance with GAAP) incurred in the ordinary course of business; (viii) commence or settle any Proceeding relating to the Transferred Assets or Transferred Liabilities; (ix) enter into any purchase commitments transaction or take any other action in the conduct of or otherwise relating to purchase, Inventory in amounts the Acquired Business or Transferred Assets outside the ordinary course of business; (lx) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employmenttransaction or take any other action that might cause or constitute a material breach of any representation or warranty made by Seller in this Agreement if (A) such representation or warranty had been made as of the time of such transaction or action, deferred compensation or similar agreement with any (B) such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser)transaction had been entered into, or terminate the employment of any such employee without causeaction had occurred, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable on or prior to the Business and, promptly following receipt thereof, give to date of this Agreement or (C) such representation or warranty had been made as of the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such LawsClosing Date; and (qxi) not agree, commit or offer (in writing or otherwise) to take any material of the actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided described in this Section 7.16.1(b). (c) Notwithstanding the foregoing, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectlyprevent Seller during the Pre-Closing Period from taking any actions to facilitate the Closing, the right to control Purchase or direct the operations consummation of Seller prior to Closingthe transactions contemplated by the Transaction Documents.

Appears in 1 contract

Samples: Asset Purchase Agreement (Wisa Technologies, Inc.)

Conduct of the Business. From Unless otherwise approved in writing by the date Buyer or set forth in Section 4.1 of this Agreement until the Closing (or Company Disclosure Schedule, the Company will comply with, and will cause each of the Subsidiaries to comply with, the following covenants until the earlier of the Effective Time and the termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall:. (a) operate The Company will, and carry will cause each of the Subsidiaries to: (i) maintain its legal existence; (ii) use all commercially reasonable efforts to preserve the Business and its business organization intact, retain its licenses, permits, authorizations, franchises and certifications, and preserve the existing contracts and goodwill of its customers, suppliers, vendors, service providers, personnel and others having business relations with it; (iii) use all commercially reasonable efforts to keep available the services of present Employees and consultants and independent contractors engaged on active projects, in each case in accordance with past practice, it being understood that termination of Employees, consultants and independent contractors with poor performance or for cause shall not constitute a violation of this covenant; (iv) conduct its business only in the ordinary course (including the collection of receivables and the payment of payables and capital expenditures) and use commercially reasonable efforts to duly and timely file all Tax Returns or reports required to be filed with the applicable tax authorities and promptly pay all Taxes, assessments and governmental charges levied or assessed upon them or any of their properties (unless contesting the same in good faith and adequate provision has been made therefor); (v) keep in effect casualty, public liability, worker’s compensation and other insurance policies in coverage amounts not less than those in effect on the Business Agreement Date; (vi) use all commercially reasonable efforts to preserve and protect the Company Intellectual Property, provided that the Company shall not be required to make any filings, registrations or take any prosecution actions with respect to such Company Intellectual Property that it would not take in the ordinary course of business consistent with past practice; and (vii) use all commercially reasonable efforts to operate in such a manner as to assure that the representations and warranties of the Company and the Subsidiaries set forth in this Agreement will be true and correct as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. (b) The Company will not, and will cause each of the Subsidiaries to not: (i) change its method of management or operations in any material respect, other than in the ordinary course of business and consistent with past practices; (ii) dispose, acquire or license any assets or properties, or make any commitment to do so, other than in the ordinary course of business; (A) incur any obligation or liability other than (1) in the ordinary course of business or (2) for Transaction Expenses, (B) incur any indebtedness for borrowed money, make any loans or advances, or assume, guarantee or endorse or otherwise become responsible for the obligation of any other Person, or (C) subject any of its properties or assets to any Lien other than Permitted Liens, in each case other than in the ordinary course of business; (iv) prepay any Change in Control Payments; (v) modify, amend, cancel or terminate any Material Contract, other than the addition of optional addendums to alliance and joint marketing agreements in the ordinary course of business, or any Company Benefit Plan; (vi) make any change in the compensation paid or payable to any Employee, manager, agent, representative or consultant as shown or required to be shown on Schedule 2.21(a) of the Company Disclosure Schedule or make any material change in the fringe benefits of any Employee; (vii) promote, change the job title of, or otherwise alter in any material respect the responsibilities or duties of, any Company management or Employee; (viii) other than in the ordinary course of business consistent with past practice, enter into any licensing, distribution, sponsorship, advertising, merchant program or other similar contracts, agreements, or obligations which may not be cancelled without penalties by the Company upon notice of 30 days or less; (ix) (A) sell, assign, lease, terminate, abandon, transfer or otherwise dispose of or grant any security interest in and to any item of Company Intellectual Property, in whole or in part, (B) grant any exclusive license with respect to any Company Owned Intellectual Property, (C) develop, create or invent any Intellectual Property jointly with any third party, unless such Intellectual Property is subject to a Contract which provides for the ownership of such Intellectual Property to the Company, (D) disclose, or allow to be disclosed, any confidential Company Intellectual Property, unless such Company Intellectual Property is subject to a confidentiality or non-disclosure covenant protecting against disclosure thereof or (E) allow any Company Owned Intellectual Property owned by the Company to become abandoned, dedicated, disclaimed, or lapse, provided that the Company shall not be required to make any filings, registrations or take any prosecution actions with respect to such Company Intellectual Property that it would not take in the ordinary course of business consistent with past practice; (bx) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering enter into any closing agreement, settling contract or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action agreement which would adversely affect the Purchased Assets or the Business in otherwise be considered a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (Material Contract other than Permitted Encumbrances), fail contracts or agreements with customers and resellers to maintain or otherwise dispose of any Purchased Assets, other than whom the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Company licenses Company Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (kxi) not manufacturemake or cause to be made any dividend, distribution, redemption, repurchase, recapitalization, reclassification, grant, issuance, repricing, split, combination or other transaction involving the Company Stock or other Company Securities (other than in the connection with the exercise of Purchase Rights outstanding as of the Agreement Date), or any preemptive right, subscription right, option, warrant or right to acquire any such capital stock or equity securities; (xii) accelerate the collection of any accounts receivable, fail to pay, or delay in paying accounts payable when due (except any accounts payable being disputed in good faith), or otherwise make any change in or otherwise deviate from its accounting practices or procedures, except as required by GAAP; (xiii) change any method of Tax accounting, make or change any Tax election, file any amended Tax Return, settle or compromise any Tax liability, agree to an extension or waiver of the statute of limitations with respect to the assessment or determination of Taxes, enter into any purchase commitments closing agreement with respect to purchase, Inventory in amounts outside the ordinary course of businessany Tax or surrender any right to claim a Tax refund; (lxiv) use commercially reasonable efforts not fail to keep current and in full force and change its customer pricing (including any rebates, discounts or promotions) if any such changes would have a material adverse effect or renew any of the material Permits related to upon the Business; (m) not amend; notwithstanding the foregoing, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except all price changes that are made in the ordinary course of business and/or are consistent with past practicepractices shall be deemed immaterial; (pxv) comply in all material respects with all Laws applicable to acquire any business or Person, whether by merger or consolidation, purchase of assets or equity securities or any other manner; (xvi) cancel or waive any rights of substantial value, or pay, discharge or settle any claim of substantial value; (xvii) amend the Business and, promptly following receipt thereof, give to the Purchaser copies Company Certificate of Incorporation or Company Bylaws or any analogous governing documents of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andthe Subsidiaries; (qxviii) not take make any material actions that could reasonably be expected new capital expenditure commitments that, individually or in the aggregate, exceed $100,000; or (xix) commit to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms do any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right foregoing referred to control or direct the operations of Seller prior to Closingin clauses (i) - (xviii).

Appears in 1 contract

Samples: Agreement and Plan of Merger (PTC Inc.)

Conduct of the Business. From the date of this Agreement until the Closing (or Original Date until the earlier termination of the Closing Date and the date this Agreement is terminated in accordance with Section 11.1)its terms, except as expressly required by applicable Law, as set forth on Schedule 7.1 in Section 5.01 of the Seller Disclosure Schedule, as contemplated required by applicable Law or as required by this Agreement, as may be required to implement this Agreement or any Ancillary Agreementcomplete the Reorganization, or as otherwise waived or consented with Buyer’s prior written consent (not to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall, and shall cause its Subsidiaries to, (i) conduct the Business in all material respects in the ordinary course consistent with past practice, and (ii) use commercially reasonable efforts to (A) preserve the Business substantially intact, and (B) maintain and preserve the assets, properties and material business relationships (including with employees) of the Business. Without limiting the generality of the foregoing, from the Original Date until the earlier of the Closing Date and the date this Agreement is terminated in accordance with its terms, except as set forth in Section 5.01 of the Seller Disclosure Schedule, as required by applicable Law or as required by this Agreement, as may be required to complete the Reorganization, or otherwise with Buyer’s prior written consent (not to be unreasonably withheld, conditioned or delayed), Seller shall not, and shall not permit any of the Transferred Entities, the JV Entities (as limited by Seller’s express rights to exercise control over such JV Entity), the Equity Sellers, the XX Xxxxxxx, or the Asset Sellers, in each case solely with respect to the Business to: (a) operate amend or modify the Organizational Documents of any Transferred Entity or JV Entity, except for routine amendments to the Organizational Documents of any such Transferred Entity or JV Entity in the ordinary course of business consistent with past practice which are not reasonably expected to result in any material adverse impact to Buyer, any Buyer Designee, any Transferred Entity or any JV Entity; (b) acquire or sell, assign, transfer, lease, license, pledge, or otherwise dispose of any Owned Real Property, other than leases and carry on the Business pledges in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Booksacquire or sell, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerassign, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not selltransfer, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of (i) any Purchased AssetsTransferred Assets in excess of $1,000,000 individually or $5,000,000 in the aggregate or (ii) any Leased Real Property (whether by merger, other than consolidation, acquisition of stock or assets, license or otherwise) except, in each case, (A) as required by Material Contracts in existence on the sale of Inventory and other dispositions of assets Original Date, (B) any transaction among wholly owned Transferred Entities, or (C) in the ordinary course of business consistent with past practice; (id) not sell, transfer, pledge or otherwise dispose of any Transferred Interests or JV Interests; (e) propose or adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization of any Transferred Entity or JV Entity or file a petition in bankruptcy or consent to the filing of any bankruptcy petition under any applicable Law; (f) enter into any agreement with respect to the capital stock or Equity Interests of any Transferred Entity or JV Entity; (g) issue, deliver, sell, pledge, dispose of, grant, transfer or encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer or encumbrance of, any capital stock or other Equity Interests of, or become a party to any subscriptions, warrants, rights, options, convertible securities, voting or other similar agreements or commitments relating to the capital stock or other Equity Interests of, a Transferred Entity or JV Entity, except in connection with (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandontransaction among wholly owned Transferred Entities, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (jiii) not grant any allowances or discounts on Products outside the ordinary course formation of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except Subsidiaries in the ordinary course of business consistent with past practice; (ph) comply reclassify, adjust, combine, split, subdivide or amend the terms of, or redeem, purchase or otherwise acquire, directly or indirectly, any of the capital stock or other Equity Interests, or authorize or propose the issuance of any other securities in respect of, in lieu of or in substitution for shares of its capital stock or other Equity Interests of any Transferred Entity or JV Entity; (i) make any material change in any method of accounting or accounting practice or policy used with respect to the Business, except as required by applicable Law or GAAP or recommended by Seller’s independent auditors with respect to Seller and its Subsidiaries as a whole; (j) (i) increase, in any material respect, the compensation or benefits payable to any Business Employee, (ii) grant any new retention, equity, bonus, severance or termination pay to any Business Employee, or (iii) enter into or amend any employment, consulting, indemnification, severance, change in control, retention or termination agreement with any Business Employee, except in each case (A) in the ordinary course of business consistent with past practice, (B) as reflected in the budget or financial forecast previously provided to Buyer, (C) as required by applicable Law or the terms of any Plan, or any Contract in existence on the Original Date, (D) in connection with renewals of Bargaining Agreements that do not increase aggregate costs by more than 5%, or (E) as specifically contemplated in this Agreement, or (F) if any and all associated Liabilities are retained by Seller; (k) adopt or enter into any new Plan or amend or modify in any material respects respect or terminate any existing Plan, except (i) in the ordinary course of business consistent with past practice, (ii) as reflected in the budget or financial forecast previously provided to Buyer, (iii) as required by applicable Law or the terms of any Plan or any Contract in existence on the Original Date, (iv) in connection with renewals of Bargaining Agreements that do not increase aggregate costs by more than 5% per year, (v) as specifically contemplated in this Agreement, or (vi) if any and all Laws applicable associated Liabilities are retained by Seller; (l) enter into or amend any Bargaining Agreement or, through negotiation or otherwise, make any binding commitment to any labor organization with respect to the Business andEmployees, promptly following receipt thereofexcept (i) in the ordinary course of business consistent with past practice, give (ii) as required by applicable Law, or (iii) in connection with renewals of Bargaining Agreements that do not increase aggregate costs by more than 5%; (m) make any loan, advancement or investment in any Person, except (i) advances to employees in the ordinary course of business consistent with past practice, (ii) in accordance with the terms of Material Contracts in existence on the Original Date or that are entered into after the Original Date in the ordinary course of business consistent with past practice, (iii) any transaction among wholly owned Transferred Entities, (iv) any transaction involving less than $10,000,000, or (v) otherwise in the ordinary course of business consistent with past practice; (n) authorize new individual capital expenditures in excess of $5,000,000 individually or $10,000,000 in the aggregate, in each case solely to the Purchaser copies extent any Transferred Entity or JV Entity would be responsible for the payment thereof after the Closing or which would otherwise constitute an Assumed Liability at the Closing, except for capital expenditures (i) required pursuant to the terms of Material Contracts in existence on the Original Date, or (ii) reflected in the budget or financial forecast previously provided to Buyer; (o) enter into any notice received from Contract that, if existing on the Original Date would be a Material Contract, amend or modify in any Governmental Authority material respect adverse to the Business or terminate any Material Contract, or cancel, modify, amend, release, assign or waive any material rights or claims under any Material Contract, except (i) in the ordinary course of business consistent with past practice, or (ii) termination due to uncured breach by the counterparty under such Material Contract; (p) cancel, compromise or settle any material Action for which any Transferred Entity or JV Entity would have any Liability after the Closing or which would otherwise constitute an Assumed Liability at the Closing, other Person alleging than compromises, settlements or agreements (i) in the ordinary course of business consistent with past practice that involve only the payment or receipt of monetary damages that (A) are reserved against in the determination of Net Working Capital, or (B) are fully paid prior to the Closing or (C) any violation settlement or compromise involving, when aggregated with any other settlements or compromises during such period which are not permitted by clause (A) or (B) above, a payment of less than $5,000,000 in the aggregate, in any such Laws; andcase without the imposition of equitable relief on, or the admission of wrongdoing by, any Transferred Entity, JV Entity or any of their respective directors, officers, employees or agents; (q) not solely with respect to the Transferred Entities, the JV Entities, the Business or the Transferred Assets, (i) make or change any material Tax election, (ii) change any annual Tax accounting period, (iii) adopt or change any material method of Tax accounting, (iv) compromise or settle any material Tax Liability, (v) amend any material Tax Return, or (vi) surrender any right to claim a refund of material Taxes, in each case, except in the ordinary course of business consistent with past practice; or (r) agree or commit to do any of the foregoing. Notwithstanding any provision herein to the contrary, prior to Closing, Seller shall be permitted to, or cause its Subsidiaries to (A) cause each Transferred Entity and JV Entity to dividend, distribute or otherwise pay to Seller or any of its Subsidiaries any Cash of such Transferred Entity or JV Entity prior to 11:59 p.m. local time on the Closing Date in the applicable jurisdiction, including through share repurchases or capital reduction arrangements in foreign jurisdictions, (B) take any material actions that could reasonably be expected action with respect to delay any Retained Asset or Retained Liability or the Closing; providedRetained Businesses, however(C) settle Intercompany Balances and make capital increases in connection therewith, except as expressly provided and (D) enter into Contracts in connection with any of the foregoing. Notwithstanding anything else contained in this Section 7.15.01, Seller and its Subsidiaries may take commercially reasonable actions that would otherwise be prohibited by this Section 5.01 to the extent necessary to prevent the occurrence of, or mitigate the existence of, emergency situations or address immediate risks of human health or damage to the environment, material equipment or other material assets of Seller or any of its Subsidiaries, so long as Seller shall, upon receipt of notice of any such actions, promptly inform Buyer of any such actions taken outside the ordinary course of business. Without in any way limiting any Party’s rights or obligations under this Agreement, the Parties understand and agree that prior to Closing nothing contained in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein Agreement shall give PurchaserBuyer or any of its Subsidiaries, directly or indirectly, the right to control or direct the operations operation of Seller the Business, and prior to the Closing, Seller and its Subsidiaries shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over their respective businesses and operations.

Appears in 1 contract

Samples: Stock and Asset Purchase Agreement (Jacobs Engineering Group Inc /De/)

Conduct of the Business. From During the period from the date of this Agreement until the Closing (or and continuing until the earlier of the termination of this Agreement or the Closing, Seller agrees, and agrees to cause its Affiliates, to (i) conduct the Business, except to the extent that the Buyer Parties shall otherwise consent in accordance writing, in the Ordinary Course of Business, (ii) pay the debts and Taxes of the Business when due (subject to Section 4.1(e) below), (iii) pay or perform other obligations of the Business when due, (iv) pay any renewal fees of the Business when due and take all such other steps as may be necessary for maintaining or defending the Transferred IP and (v) preserve intact the present business organization of the Business, use its reasonable best efforts to keep available the services of the present officers and employees of the Business, and use its commercially reasonable efforts to preserve the relationships of the Seller Parties and the Business with Section 11.1)customers, suppliers, distributors, licensors, and licensees of the Business, and others having business dealings with the Business, all with the goal of preserving unimpaired the goodwill and ongoing businesses of the Business at the Closing. Seller shall promptly notify the Buyer Parties of any event or occurrence or emergency not in the Ordinary Course of Business and any material event involving the Seller Parties or the Business that arises during the period from the date of this Agreement and continuing until the earlier of the termination date of this Agreement or the Closing. In addition to the foregoing, except as expressly required contemplated by applicable Lawthis Agreement, except in the Ordinary Course of Business, or except as expressly set forth on Schedule 7.1 in Section 4.1 of the Seller Disclosure Schedule, as contemplated by or required to implement Seller shall not, and shall cause its Affiliates not to, without the prior written consent of Buyer, from and after the date of this Agreement or any Ancillary Agreement, and only with respect to the Purchased Assets or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallthe Business: (a) operate and carry on sell inventory related to the Business in outside of the ordinary course Ordinary Course of business Business, including with respect to pricing, discounting practices, bundling, sales volume and services levels, and will maintain inventory used by the Business sufficient to meet expected customer requirements, consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill , including sufficient raw materials, capacity and work in process in light of the Business anticipated demand and the relationships of Seller with its customers, vendors, suppliers, Business Employees customary cycle times and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily sufficient finished goods inventory related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation satisfaction of customer orders of the Business as presently conductedon hand at Closing; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 1 contract

Samples: Asset Purchase Agreement (INPHI Corp)

Conduct of the Business. From Except as otherwise contemplated by this Agreement, during the period from the date of this Agreement until to the Closing Date, DESC and each of the JV Entities shall, DESC shall cause each of the JV Entities to, and, solely with respect to clauses (i) through (iv) below, the Xxxxx Entities shall cause each of the JV Entities to, (i) conduct the Business in the ordinary course of business, consistent with past practice and to the extent consistent therewith; (ii) use commercially reasonable efforts to preserve intact in all material respects the organization and goodwill of the Business; (iii) use commercially reasonable efforts to maintain in all material respects its current relationships with customers, suppliers, distributors and others having business dealings with it; (iv) not intentionally take any action which would render, or which reasonably may be expected to render, any representation or warranty made by DESC or any of the JV Entities in this Agreement untrue in any material respect on the Closing Date; (v) confer on a regular and frequent basis with representatives of the Xxxxx Entities to report on operational matters and the general status of ongoing operations with respect to the Business; (vi) notify the Xxxxx Entities of any emergency or other change in the normal course of the Business or in the operation of the Business and of any governmental or third-party complaints, investigations or hearings (or until communications indicating that the earlier termination same may be contemplated) if such emergency, change, complaint, investigation or hearing would be material, individually or in the aggregate, to the operation or financial condition of the Business, the Assets or to the ability of DESC or any of the JV Entities or the Xxxxx Entities to consummate the transactions contemplated by this Agreement; and (vii) promptly notify the Xxxxx Entities in writing if either DESC or any of the JV Entities shall discover that any representation or warranty made by DESC or the JV Entities in this Agreement was, when made, or has subsequently become, untrue in any material respect. Without limiting the generality of the foregoing, and, except as contemplated by this Agreement, during the period from the date of this Agreement in accordance with Section 11.1)to the Closing Date, except as expressly required by applicable Law, as set forth on Schedule 7.1 without the prior written consent of the Seller Disclosure ScheduleXxxxx Entities, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)neither DESC nor any of the JV Entities shall, Seller shalland DESC shall cause each of the JV Entities to not: (a) operate and carry on materially increase the rate of compensation of, pay or agree to pay any benefit to, or terminate the employment of, any director, officer or employee of the Business, except in the ordinary course of business or as may be required by any existing Plan, agreement or arrangement; (b) enter into, adopt or amend any Plan, Union Agreement, or employment or severance agreement, in each case, relating to the Business, except in the ordinary course of business; (c) except in the ordinary course of business, (i) sell, lease, transfer or otherwise dispose of any of the Assets or (ii) mortgage or encumber any of the Assets; (d) acquire or agree to acquire by merging or consolidating with, or by purchasing the stock or a substantial portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof or otherwise acquire or agree to acquire any assets which are material individually, or in the aggregate, to the Business; (e) modify, amend or terminate any contract pursuant to which DESC or any of the JV Entities expend more than US$10,000 per year with respect to the Business (except modifications or amendments associated with renewals in the ordinary course of business consistent with past practice); (bf) enter into any contract (other than trade payables in the ordinary course of business) (i) obligating DESC or any of the JV Entities to expend with respect to the Business more than US$10,000 or (ii) relating to the Assets or the Business and extending beyond the Closing Date; (g) fail to use commercially reasonable efforts to preserve intact the goodwill prevent any material deterioration of any of the Business Assets (other than normal wear and tear); (h) enter into any negotiations with any party with respect to a possible sale, or any agreement or commitment to sell to any third party, or solicit any offers or proposals in connection with the relationships sale of Seller with its customersany of the Assets, vendors, suppliers, Business Employees other than transactions in the ordinary course of business and others having business relations with sales of obsolete Assets not currently used in the conduct of the Business; (ci) continue to maintain the Books(i) incur, Records and Files assume or prepay any indebtedness or any other liabilities of Seller and its Affiliates exclusively or primarily related to the Business on a basis business, consistent with past practice; and (dii) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business assume, guarantee, endorse or otherwise become liable or responsible (including all Registered IPwhether directly, contingently or otherwise) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation obligations of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable other Person other than in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; ; or (iiii) not (i) exclusively licensemake any loans, assign advances or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandoncapital contributions to, or permit investments in, any other Person, in each case, only to lapse the extent that any rights in such action imposes a Lien on any Asset or otherwise adversely affects the ability of DESC and the JV Entities to conduct the Business as it is currently conducted or to any Purchased Business Intellectual Property or any Purchased Business Technologyconsummate the transactions contemplated by this Agreement; (j) not grant permit any allowances insurance policy relating to the Business and naming DESC or discounts any of the JV Entities or the Business as a beneficiary or a loss payee, in each case, to be cancelled or terminated on Products outside any date other than the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of businessClosing Date; (k) not manufacture, amend or enter into propose to amend the organizational documents of DESC or any purchase commitments of the JV Entities in a manner that would adversely affect the ability of DESC or such JV Entity to purchase, Inventory in amounts outside consummate the ordinary course of businesstransactions contemplated by this Agreement; (l) use commercially reasonable efforts not fail permit any accounts payable owed to keep current and trade creditors of the Business or relating to the Assets, the Business or the Assigned Contracts to remain outstanding more than 60 calendar days beyond the payment date applicable to such account payable; or agree, whether in full force and effect writing or renew otherwise, to do any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Asset Purchase Agreement (Desc S a De C V)

Conduct of the Business. From and after the date of this Agreement hereof until the Closing Date, and unless the Buyer shall otherwise consent or agree in writing, the Seller and the Parent covenant that: (or until the earlier termination of a) Except as contemplated by this Agreement or required by the Bankruptcy Code or order of the Court, the Seller shall not make any material change in accordance with Section 11.1)the physical condition of any Store located on Owned Real Property, except as expressly required by applicable Law, as set forth on Schedule 7.1 5.1(a), with regard to any ongoing renovation and remodeling efforts at the Stores located on Owned Real Property and normal maintenance and repairs of the Stores located on Owned Real Property, including, without limitation, the installation of elevators at such Stores, and the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on conduct the Business and maintain the Purchased Assets in the ordinary course of business consistent with past practice;the Seller's status and practices as a debtor-in-possession under Chapter 11 of the Bankruptcy Code. (b) Without limiting the generality of the foregoing, except as contemplated by this Agreement, the Seller shall: (i) conduct the Business in accordance with the Seller's recent retail practices with respect to the receipt of goods, the distribution, pricing, sale and promotion of goods and the taking of permanent and temporary markdowns to insure proper aging and other customary inventory management practices; (ii) use commercially reasonable efforts to preserve intact and maintain in all material respects the goodwill Purchased Assets and existing relationships with suppliers, customers and others doing business with the Seller; and (iii) promptly notify the Buyer in writing of any material damage to the Purchased Assets of which the Seller or the Parent has knowledge, or any fact, circumstance or occurrence which the Seller reasonably believes to have a Material Adverse Effect or would render any of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business;Seller's representations or warranties inaccurate in any material respect. (c) continue to maintain Except as otherwise contemplated by this Agreement or required by order of the BooksCourt, Records and Files of the Seller and its Affiliates exclusively the Parent shall not: (i) mortgage, pledge or primarily related subject the Purchased Assets to any Lien other than Permitted Liens; (ii) enter into, adopt or amend (except as required by law or by any agreement listed in Schedule 3.10 hereto) any Benefit Plan or increase the Business on a basis consistent amount or accelerate the payment or vesting of any benefit payable thereunder; (iii) cancel, terminate, assign or amend any Assumed Contract; (iv) close any Stores to be purchased by the Buyer; (v) purchase inventory or supplies for the Stores other than in accordance with the Seller's past practicepractices following the Petition Date; andor (vi) transfer or sell any Equipment from the Stores. (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business Except as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with otherwise permitted by the terms thereof; (f) refrain from makingof this Agreement, changing the Seller shall not permit or revoking take any Tax election; refrain from adopting or changing any accounting method with respect action that would be expected to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; does result in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel representations and warranties in Article III becoming untrue or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify incorrect in any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingrespect.

Appears in 1 contract

Samples: Asset Purchase Agreement (Levitz Furniture Corp /Fl/)

Conduct of the Business. From (a) The Sellers will cause each Company to, prior to the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallClosing: (ai) operate and carry on the Business in the ordinary course of business consistent with past practicemaintain its corporate or limited liability company existence; (bii) use commercially all reasonable efforts to preserve intact the goodwill of the Business and its business organization intact, retain its permits, licenses and franchises, preserve the relationships existing contracts and goodwill of Seller with its customers, vendors, suppliers, Business Employees personnel and others having business relations with the Businessit; (ciii) continue to maintain conduct its business only in the Books, Records ordinary course (including without limitation the collection of receivables and Files the payment of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practicepayables); and (div) continue to make use all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain operate in effect all material Permits required for such a manner as to assure that the ongoing operation representations and warranties of the Business Sellers set forth in this Agreement on the date hereof will be true and correct as presently conducted;of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. (eb) perform all of Seller’s material obligations under Except as set forth on SCHEDULE 4.1(b), the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingSellers will cause each Company not to, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case prior to the extent taking Closing, without the Purchaser's prior written consent (such action would adversely affect the Purchased Assets consent not to be unreasonably withheld or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice;delayed): (i) not (i) exclusively license, assign change its method of management or transfer operations in any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and material respect; (ii) dispose ofof or acquire any material assets or properties or make any commitment to do so, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices other than inventory in the ordinary course of business; (kiii) not manufacturesubject any of its properties or assets to any lien, security interest, mortgage or enter into any purchase commitments to purchaseencumbrance, Inventory in amounts outside each case other than in the ordinary course of business; (liv) use commercially reasonable efforts not fail modify, amend, cancel or terminate any Material Contract or any other existing agreement, contract or instrument material to keep current and in full force and effect any Company or renew any of the material Permits related to the Business; (mv) not amendmake any change in the compensation paid or payable to any officer, modifydirector, cancel employee, agent, representative or terminate consultant as shown or required to be shown on a schedule hereto, or pay or agree to pay any Assigned Contract bonus or similar payment (other than terminations bonus payments or expirations at the end of the stated term after the date hereofother amounts to which any Company is committed and which are expressly disclosed in this Agreement or a schedule hereto); (nvi) not waivepromote, releasechange the job title of, assign or modify otherwise alter in any material benefit respect the responsibilities or claim under duties of, any Assigned management employee or officer of any Company; (vii) enter into any lease, contract or agreement that if in existence on the date hereof would have constituted a Material Contract; (oviii) not grant make any Business Employee any increase change in compensation its accounting practices or in severance procedures; (ix) change its customer pricing, rebates or termination paydiscounts, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except other than in the ordinary course of business consistent with past practicebusiness; (px) comply in all take any other action which could have a material respects with all Laws applicable to adverse effect on the Business andor the affairs, promptly following receipt thereofassets, give to the Purchaser copies condition (financial or otherwise) or prospects of any notice received Company, or could adversely affect or detract from any Governmental Authority or other Person alleging any violation the value of any such LawsCompany, its assets or the Business; andor (qxi) not take commit to do any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right foregoing referred to control or direct the operations of Seller prior to Closingin clauses (i) - (x).

Appears in 1 contract

Samples: Asset Purchase Agreement (SHG Holding Solutions Inc)

Conduct of the Business. From During the date of this period from the Agreement until the Closing (or Date and continuing until the earlier of the termination of this Agreement and the Effective Time (except to the extent expressly provided otherwise in accordance with Section 11.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreementwith express prior written consent of Acquiror): (a) Parent and Company shall, and shall cause each member of the Parent Group (as applicable, solely with respect to the Business) to, conduct the Business solely in the usual, regular and ordinary course in substantially the same manner as heretofore conducted (except to the extent expressly provided otherwise in this Agreement or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall:Acquiror) and in compliance with all applicable Legal Requirements; (ab) operate Company shall and carry on Parent shall and shall cause each member of the Parent Group to (as applicable, solely with respect to any Business Asset) (A) other than as set forth in Section 4.2, pay all debts and Taxes of Company and the Business when due, subject to good faith disputes over such debts or Taxes, (B) other than as set forth in Section 4.2, pay or perform other obligations of Company or the Business when due, (C) use reasonable efforts consistent with past practice and policies to collect accounts receivable of Company when due and not extend credit outside of the ordinary course of business consistent with past practice; practices, (bD) sell Company products consistent with past practices as to license, service and maintenance terms, incentive programs, and in accordance with GAAP requirements as to revenue recognition, and (E) use commercially reasonable efforts consistent with past practice and policies to preserve intact its present business organizations, keep available the goodwill services of the Business its present officers and the key employees and preserve its relationships of Seller with its customers, vendors, suppliers, Business Employees distributors, licensors, licensees, and others having material business relations dealings with it, to the Businessend that its goodwill and ongoing businesses shall be unimpaired at the Closing; (c) continue Parent or Company shall promptly notify Acquiror of any change, occurrence or event not in the ordinary course of the Business, or of any change, occurrence or event which, individually or in the aggregate with any other changes, occurrences and events, would reasonably be expected to maintain be materially adverse to Parent, Company or the BooksBusiness taken together or cause any of the conditions to closing set forth in ARTICLE 6 not to be satisfied; (d) Parent and Company shall, Records and Files shall cause each member of Seller and the Parent Group to, assure that each of its Affiliates exclusively or primarily Contracts related to the Business on entered into after the Agreement Date will not require the procurement of any consent, waiver or novation or provide for any change in the obligations of any party in connection with, or terminate as a basis consistent with past practiceresult of the consummation of, the Mergers, and shall give reasonable advance notice to Acquiror prior to allowing any Material Contract or right thereunder to lapse or terminate by its terms; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all Parent and Company shall maintain each of Seller’s material obligations under the Assigned Contracts its leased premises in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 1 contract

Samples: Agreement and Plan of Merger and Reorganization (Glu Mobile Inc)

Conduct of the Business. From the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Date, except as expressly required by applicable Law(v) for the Pre-Closing Transactions, (w) as set forth on Schedule 7.1 in ‎‎Section 5.01 of the Seller Disclosure Schedule, (x) as contemplated by or required to implement this Agreement or any Ancillary the other Transaction Documents, (y) as required by Applicable Law or (z) with Buyer’s written consent, Seller shall (i) conduct the Purchased Subsidiaries’ business in the ordinary course consistent with past practice in all material respects, and (ii) use its reasonable best efforts to (A) preserve intact the Purchased Subsidiaries’ business, operations, organization, goodwill and reputation, (B) maintain the good will of the Purchased Subsidiaries’ customers, suppliers, lenders and other Persons to whom the Purchased Subsidiaries sells goods or provides services, (C) keep available the services of key employees of the Business, and (D) maintain substantially the same levels of coverage of insurance as provided on the date hereof. Without limiting the generality of the foregoing, from the date hereof until the Closing Date, except (v) for the Pre-Closing Transactions, (w) as set forth in ‎‎Section 5.01 of the Disclosure Schedule, (x) as contemplated by this Agreement, (y) as required by Applicable Law or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed)z) with Buyer’s written consent, Seller shallshall cause the Purchased Subsidiaries not to: (a) amend in any material respect the articles of incorporation, bylaws or other similar organizational documents of any Purchased Subsidiary; (b) authorize, issue, sell or otherwise dispose of any equity securities of the Purchased Subsidiaries, or split, combine or reclassify any of the equity securities of the Purchased Subsidiaries or redeem, purchase, repurchase, retire or otherwise acquire any of its outstanding equity securities, or grant any options, warrants, or rights with respect to any equity securities in the Purchased Subsidiaries’ capital or bonds, debentures, notes or other corporate security other than with respect to transactions between the Purchased Subsidiaries; (c) cease to operate and the Purchased Subsidiaries’ properties (either permanently or temporarily other than scheduled shut downs for routine maintenance) or cease to carry on a material part of the Business as operated or carried on immediately before the date hereof; (d) effect any dissolution, winding-up, liquidation or termination of the Purchased Subsidiaries; (e) acquire a material amount of assets from any other Person except (i) pursuant to existing contracts or commitments or (ii) otherwise in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from makingacquire any material business or Person, changing by merger, amalgamation or revoking consolidation, purchase or sale of substantial assets or equity interests, or by any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodother manner; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain license or otherwise dispose of any material assets of the Purchased AssetsSubsidiaries except (i) pursuant to existing contracts or commitments, (ii) cash dividends or other than the sale of Inventory and other dispositions of assets cash distributions to Seller or its Affiliates or (iii) otherwise in the ordinary course of business consistent with past practice; (ih) not (i) exclusively license, assign or transfer to any Purchased Business person any rights to the Registered Intellectual Property Rights or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business other material Intellectual Property Rights owned by the Purchased Subsidiaries, except in connection with sales of the Purchased Subsidiaries’ products or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices services in the ordinary course of business; (i) create or otherwise incur any Lien on the material assets of the Purchased Subsidiaries, other than Permitted Liens; (j) incur any capital expenditures, except for (i) those contemplated by the capital expenditure budget attached as ‎Section 5.05 of the Disclosure Schedule, and (ii) unbudgeted capital expenditures not to exceed $500,000 individually or $1,000,000 in the aggregate; (k) not manufactureissue, create, assume, guarantee or incur any additional indebtedness for borrowed money in an aggregate principal amount exceeding $500,000 individually or $1,000,000 in the aggregate (net of any amounts of indebtedness discharged during such period), other than (x) in the ordinary course of business, (y) that will be settled or repaid in full prior at or to Closing or (z) solely between or among Purchased Subsidiaries; (l) enter into any purchase commitments arrangement pursuant to purchasewhich any Purchased Subsidiary shall assume, Inventory guarantee or otherwise become liable with respect to the liabilities (other than indebtedness for borrowed money, which is the subject of ‎Section 5.01(k)) of any Person (other than any Purchased Subsidiaries), other than (x) in the ordinary course of business or (y) that will be settled or repaid in full prior at or to Closing; (m) other than in connection with actions permitted by ‎Section 5.01(j), make any material loans, advances or capital contributions to, or investments in, any other Person, other than (i) in the ordinary course of business consistent with past practice, (ii) to any other Purchased Subsidiary or (iii) amounts that will be repaid in full at or prior to the Closing; (n) waive or cancel any material claim, account receivable, trade account or right outside the ordinary course of business; (lo) use commercially reasonable efforts not fail to keep current and except as required by Applicable Law, amend or modify in full force and effect any material respect or renew terminate any of the material Permits related to the BusinessMaterial Contract or Real Property Lease; (mp) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employmentcontract that would have been a Material Contract had it been entered into prior to the date hereof except, deferred compensation or similar agreement solely with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser)respect to Material Contracts relating to the purchase of raw materials that have a term of less than one year, or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (pq) comply settle or offer to settle, any material Action involving the Purchased Subsidiaries, except where the amount paid in all settlement or compromise does not exceed (i) the amount of any reserves reflected on the Balance Sheet in respect of such Action or (ii) the aggregate coverage provided for under any insurance policy in respect of such Action, in either case, so long as such settlement does not impose any non-monetary terms and conditions on the Purchased Subsidiaries after the Closing; (r) make any material respects change in any method of financial accounting, except for any such change required by reason of a concurrent change in GAAP or other Applicable Law; (s) materially increase the compensation or benefits of the Business Employees other than in the ordinary course of business consistent with all Laws applicable past practice or as required by Applicable Law or the terms of any Benefit Plan or collective bargaining or other labor agreement; (t) enter into, adopt, amend, or terminate any employment agreement, or terminate or hire any Key Employee, or other Business Employee above the grade of director or engage in a reduction in force with respect to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andEmployees; (qu) enter into, adopt, amend or terminate any Purchased Subsidiary Benefit Plan or any Benefit Plan, except in each case as would not take any material actions that could reasonably be expected to delay result in a liability that is material to the ClosingPurchased Subsidiaries taken as a whole; (v) enter into, materially amend, or terminate any collective bargaining agreement, collective labor agreement or similar agreements with respect to Business Employees; providedor (w) agree or commit to do, howeverwhether or not in writing, except as expressly provided in this Section 7.1any of the foregoing. For the avoidance of doubt, nothing in this Section 7.1 ‎‎Section 5.01 shall prohibit restrict Seller or any of its Subsidiaries, in any respect, from taking any action to (i) cause each Purchased Subsidiary to dividend, distribute or otherwise pay to Seller or any of its Affiliates any or all of the cash and cash equivalents of such Purchased Subsidiary; (ii) remove, or cause any Subsidiary to remove and pay to Seller or any of its Affiliates any cash and cash equivalents held in any bank account of any Purchased Subsidiary, (iii) settle intercompany balances between any Purchased Subsidiary, on the one hand, and Seller or any Retained Subsidiary, on the other hand, and make capital increases or decreases in connection therewith, (iv) in connection with any of the foregoing clauses (i), (ii) or (iii), cause any Purchased Subsidiary to incur indebtedness for borrowed money from conducting their businesses, including the Business, in their reasonable discretion provided it shall another Purchased Subsidiary and (v) otherwise comply with or give effect to the terms provisions of the this Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.

Appears in 1 contract

Samples: Stock Purchase Agreement (Conagra Foods Inc /De/)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement otherwise provided in this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned withheld or delayed), Seller shall, and shall cause the other Asset Sellers and Companies to, conduct the Business in the ordinary course consistent with past practice, and use commercially reasonable efforts to maintain the value of the Business as a going concern consistent with past practice. Seller shall, and shall cause each other Asset Seller and each Company to, use its commercially reasonable efforts to preserve intact the present organization of the Business and each Company, keep available the services of the present officers and employees of the Business and each Company and preserve relationships with customers, creditors, suppliers, licensors, licensees, contractors, distributors and others having business dealings with the Business and each Company, and in each case with respect to the Business, maintain its books and records, comply in all material respects with all applicable Laws and comply in all respects with the FCPA and any other anti-corruption Law. Seller shall, and shall cause each other Asset Seller and Company to, maintain in force all existing insurance policies covering the Business or any of the Purchased Assets on the same terms, coverages and limits. Without limiting the generality of the foregoing, except as set forth on Schedule 5.01 or as specifically permitted or required by the terms of this Agreement or as required by applicable Law, from the date of this Agreement until the Closing, without the prior written consent of Purchaser (which consent shall not be unreasonably withheld or delayed), Seller shall not, in each case with respect to the Business, the Purchased Assets or the Assumed Liabilities, and shall not permit any Asset Seller or Company to: (a) operate except for the payment of any transaction bonuses relating to the transactions contemplated hereby, the amounts and carry recipients of which are set forth on Schedule 1.01-8, (i) grant any increase, or announce any increase, in the wages, compensation, bonuses, incentives, pension or other benefits payable by such Asset Seller or Company to any Transferred Employee other than in the ordinary course of business, or (ii) terminate, establish or increase or promise to increase any benefits under any Employee Plan (or any agreement that could be an Employee Plan if in effect on the date hereof) for the benefit of any Transferred Employee, in each case except as required by Law; (b) hire or terminate any Business Employee or Company Employee whose annual compensation would exceed $200,000; (i) enter into any Contract outside the ordinary course of business that would have qualified as a Material Contract hereunder if it had been in effect as of the date hereof, (ii) terminate or modify in any material respect, waive any material right under, transfer or terminate any Material Contract or release or assign any rights or claims thereunder outside the ordinary course of business, (iii) enter into any amendment, modification or renewal of the Material Contract referenced at number 7 on Schedule 3.17, except any such amendment, modification or renewal that (A) is based, in all material respects, on the guidelines set forth on Schedule 5.01(c)(iii)(A), (B) contains terms and conditions materially consistent with, and not less favorable to Seller than, those set forth on Schedule 5.01(c)(iii)(B), and (C) is reasonably expected to result in costs no greater and savings no less than those set forth on Schedule 5.01(c)(iii)(C), (iv) enter into any Contract that grants exclusivity rights or “most favored nations” status to the counterparty thereof, or (v) enter into any Contract restricting such Asset Seller’s or such Company’s ability to compete, acquire any product, asset or services from any other Person or transact business with any other Person; (d) enter into any Contract or transaction with any Transferred Employee (or with any relative, beneficiary, spouse or Affiliate of such Persons) other than in the ordinary course of business consistent with past practice; (b) use commercially reasonable efforts to preserve intact the goodwill practice of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereofsubject any Purchased Asset to any Liens (other than Permitted Liens); (f) refrain from makingpurchase, changing sell, lease, exchange or revoking otherwise dispose of or acquire any Tax election; refrain from adopting Purchased Assets (other than transactions in the ordinary course) or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering enter into any closing agreement, settling lease of real property or compromising amend in any Tax claim or assessment; and refrain from consenting to material respect any extension or waiver of the limitation period applicable Lease Agreements (other than renewals or other transactions in the ordinary course necessary to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or conduct the Business in a Post-Closing Tax Periodthe ordinary course consistent with past practice) or Company Leases; (g) pay and discharge all material Liabilities related except as consistent with the Business’s existing capital expenditures budget made available to Purchaser prior to the date hereof, make capital expenditures or investments (or commitments therefor), other than in the ordinary course of business and in amounts less than $500,000 in the aggregate; (h) make any material change in any method of accounting practice or policy with respect to the Business; (i) settle or compromise any Action or threatened Action relating to the Business or the Purchased Assets as they become due and payable Assets; (j) grant any security interest in or transfer or license to any Person any owned Business Intellectual Property included in the Purchased Assets; (k) take any action which would violate Section 3.09 if such action were taken immediately prior to the date hereof; (l) except for the sale of Business Products in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, assign, transfer, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain license or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to assets of the Business; (m) not amendamend in a manner detrimental to such Asset Seller or Company, modify, cancel terminate or terminate permit to lapse any Assigned Contract (other than terminations material Permit required by Law for such Asset Seller or expirations at the end of the stated term after the date hereof)Company to conduct its business as currently conducted; (n) not waivewith respect to the owned and licensed Business Intellectual Property, release, assign or modify make any material benefit change in any Intellectual Property owned or claim under used by such Asset Seller or Company that reasonably could be expected to impair such Intellectual Property or such Asset Seller’s or Company’s rights with respect thereto by (i) transferring, assigning or licensing to any Assigned ContractPerson any rights to any such Intellectual Property, (ii) abandoning, permitting to lapse or otherwise disposing of any such Intellectual Property, or (iii) granting any Lien on any such Intellectual Property other than Permitted Liens; (o) not grant make, change or rescind any Business Employee election relating to Taxes payable by any increase in compensation Company or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate relating to the employment of any such employee without cause, except in the ordinary course of business consistent with past practiceBusiness; (p) comply settle or compromise any Warranty Claim outside the ordinary course or in all material respects a manner not reasonably consistent with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; andpast practices; (q) not take take, any material actions action that could would reasonably be expected to delay prevent the Closingsatisfaction of any condition set forth in Article 10; providedor (r) agree, howeverwhether in writing or otherwise, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms to do any of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing.

Appears in 1 contract

Samples: Asset Purchase Agreement (Stoneridge Inc)

Conduct of the Business. From Each member of the ADC Group hereby jointly and severally covenants to Buyers that, from the date of this Agreement until hereof to the Closing (or until Closing, the earlier termination of this Agreement in accordance with Section 11.1)ADC Group will conduct and use the BCD Business, except as expressly required by applicable Lawthe Purchased Assets, as set forth on Schedule 7.1 of and the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (a) operate and carry on the Business Assumed Liabilities only in the ordinary course of business and consistent with past practice over the past three years, except where the failure to so conduct the business would not have a Material Adverse Effect. Without limiting the generality of the foregoing, each member of the ADC Group hereby jointly and severally covenants to Buyers that from the date hereof to the Closing, solely insofar as the BCD Business, the Assumed Liabilities, and the Purchased Assets are concerned, each member of the ADC Group will use its commercially reasonable efforts to (provided however, the ADC Group shall not be deemed in breach of these covenants if the failure to perform these covenants would not have a Material Adverse Effect): (a) preserve the business and sales organization of each member of the ADC Group intact, keep available the services of the present officers of each member of the ADC Group and preserve intact their relationship and goodwill with respective suppliers, customers, employees, creditors and others having business or other dealings with the BCD Business; (b) maintain their respective books of account and records in its usual, regular and ordinary manner, consistent with its past practice; (c) maintain all Purchased BCD Intellectual Property, Licensed BCD Intellectual Property and material Assigned Third Party BCD Intellectual Property in the same standing as exists on the date hereof and continue the prosecution of all applications therefore; (d) timely perform and comply with, in all material respects, the provisions of all Contracts, commitments or other obligations relating to or affecting the Purchased Assets or the BCD Business; (e) maintain and keep in all material respects the Purchased Assets in at least as good condition and repair, ordinary wear and tear excepted, as the condition and repair of the Purchased Assets as of the date hereof; (f) pay when due all Taxes imposed on it or its income, profit or assets or otherwise required to be paid by it, and pay when due any liability or charge which, if unpaid, might become a lien or charge upon any of the Purchased Assets, except to the extent any such Tax, liability or charge is being contested in good faith through appropriate proceedings; (g) maintain in full force and effect and comply with, in all material respects, all Governmental Permits, certificates, licenses, approvals and authorizations required under all laws in connection with the BCD Business, and comply in all material respects with all laws, rules and regulations applicable to the BCD Business; (h) maintain the current management of the BCD Business, except for the Business Employees listed on Schedule 5.7(h); (i) provide access to Lynn Dugle and John Caezza on a xxxxxxx xasis xx xxxxxx xn operational matters of materiality and the general status of ongoing operations to Buyers; (j) not enter into or amend any employment (excluding any changes to salaries of less than five percent), severance, special pay arrangement with respect to termination of employment or other similar arrangements or agreements with any Business Employees, except with respect to the Business Employees listed on Schedule 5.7(h); (k) not increase or decrease the aggregate number of the Business Employees and consultants by more than 5% without the prior permission of the Buyers, except as set forth on Schedule 5.7(h); (l) maintain with adequately capitalized insurance companies insurance coverage for its assets and its businesses in such amounts and against such risks and losses as are consistent with past practice; (bm) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller not enter into any agreement with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related a supplier providing for delivery to the Business on a basis consistent with past practiceADC Group of materials or Inventory in amounts in excess of those which the ADC Group, using reasonable business judgment, reasonably project to be used or sold during the next calendar quarter; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) duly comply in all material respects respect with all Laws applicable laws, regulations and orders, and shall not take or omit to the Business and, promptly following receipt thereof, give to the Purchaser copies take any action that would cause a default under or material breach of any notice received from any Governmental Authority Contract, commitment or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms obligation of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to ClosingADC Group.

Appears in 1 contract

Samples: Acquisition Agreement (C Cor Net Corp)

Conduct of the Business. From (a) During the period from the date of this Agreement hereof until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Agreement, except (a) as expressly contemplated or required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or (b) as otherwise waived or consented to in writing by Purchaser (the Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed), provided that failure by the Purchaser to respond to any request for consent within five Business Days of receiving such request shall be deemed to constitute consent, (c) as set forth in Section 5.1 of the Disclosure Schedules, or (d) as required by applicable Law, the Seller shall, and shall cause the Seller Group (x) to conduct the Business in all material respects in the ordinary course of business and use commercially reasonable efforts to preserve intact the Business and (y) not to, with respect to the Business: (ai) operate amend the organizational documents of the Transferred Entity or (only insofar as such amendment would materially adversely affect the Business) any member of the Seller Group or subject the Transferred Entity to any bankruptcy, receivership, insolvency or similar proceedings; (ii) issue, sell, pledge, transfer, dispose of or encumber any Transferred Equity Interests or equity interests convertible into or exchangeable for any other equity interests of the Transferred Entity or permit the Transferred Entity to incur any Indebtedness; (iii) make or grant any general wage or salary increase (other than standard merit increases consistent with past practices not to exceed 2% in the aggregate) or make any increase in the payments of benefits under any bonus, incentive, insurance, deferred compensation, profit sharing, pension or other employee benefit plan or program, in each case, other than in the ordinary course of business or pursuant to existing agreements or commitments or benefit plans or as required by Law; (iv) other than with respect to Contracts of the type described in subsections (vii) and carry (viii) of Section 3.15(a), (A) enter into any Contract that would be a Material Contract if entered into prior to the date hereof, or materially amend or modify or consent to the termination of any Material Contract, in each case, excluding any new Contracts or modifications or amendments to existing Contracts entered into with customers or suppliers of the Business in the ordinary course of business, Intellectual Property licenses entered into in the ordinary course of business or lease extensions or similar amendments to leases (including the Morangis Transferred Real Property Sublease or the Danbury Lease) entered into in the ordinary course of business, or (B) waive or release any material rights under such Material Contracts other than in the ordinary course of business; (v) enter into or consummate any transaction involving the acquisition of the business, stock, assets or other properties of any other Person (other than purchases of Transferred Inventory in the ordinary course of business and capital expenditures identified in a capital expenditures budget previously provided to the Purchaser); (vi) sell, transfer, pledge, mortgage, encumber, dispose of or otherwise subject to any Encumbrance (other than Permitted Encumbrances) any assets that would have been Transferred Assets but for such transaction, other than sales of inventory in the ordinary course of business pursuant to Contracts in force as of the date hereof; (vii) make any material change in any method of accounting practices, policies, principles or procedures or auditing practice with respect to the Business other than those required by GAAP; (viii) other than in the ordinary course of business, make any loans, advances or capital contributions to, or investments in, any other Person; (ix) except in the ordinary course of business or as required under any Business Benefit Plan or applicable Law: (A) adopt, enter into, materially amend or terminate any Assumed Benefit Plan (or any plan or agreement that would be an Assumed Benefit Plan if in effect on the date hereof), other than the adoption, entry into, amendment or termination of any Assumed Benefit Plan that is generally applicable to employees of any member of the Company Group; (B) enter into any severance, retention, change in control, transaction bonus or similar agreement or arrangement with any Business Employee, or (C) make any change in, or accelerate the vesting of, the compensation or benefits payable or to become payable to any Business Employee to the extent not required by the terms of this Agreement or any Business Benefit Plan as in effect on the date of this Agreement; (x) enter into any employment or consulting agreement with any person with an annual base salary or compensation greater than $150,000; (xi) announce, implement, or effect any material reduction in labor force, lay-off, early retirement program, severance program or other program or effort concerning the termination of employment of employees of the Business other than routine employee termination; (xii) delay, defer or fail to make any capital expenditure that would otherwise have been made in the ordinary course of business consistent with past practice; (bxiii) use commercially reasonable efforts to preserve intact make any material change in the goodwill manner in which it manages its working capital, including any material change in the payment of accounts payable, the Business and collection of accounts receivable or the relationships maintenance of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Businessinventory levels; (cxiv) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments Seller Guarantee or permit or cause the Transferred Entity to purchaseenter into any letter of credit, Inventory guarantee, surety bond, performance bond, net worth maintenance agreement, reimbursement obligation, letter of comfort or other financial assurance obligation that would have been required to be disclosed in amounts outside Section 3.27 of the ordinary course of business;Disclosure Schedules if it had been entered into prior to the date hereof; or (lxv) use commercially reasonable efforts not fail authorize, commit or agree to keep current and in full force and effect or renew take any of the material Permits related to foregoing actions in respect of which it is restricted by the Business;provisions of this Section 5.1. (mb) not amendFor the avoidance of doubt, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided nothing contained in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including Agreement is intended to give the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller Group’s business, including, prior to the Closing, the Business. Prior to the Closing, the Seller Group shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision over its businesses and operations. (c) From and after the Effective Time through the Closing, the Seller shall (i) continue to be bound by the provisions of Section 5.1(a) and (ii) cause the Transferred Entity not to dividend, distribute or otherwise transfer to any member of the Seller Group any Cash of the Transferred Entity.

Appears in 1 contract

Samples: Asset Purchase Agreement (Pitney Bowes Inc /De/)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.18.1), except as expressly required by applicable Law, as set forth on Schedule 7.1 Section 4.1 of the Seller Disclosure ScheduleLetter, as specifically contemplated by or this Agreement, including as required to implement this Agreement the Restructuring Steps Plan, as required by the Monitoring Trustee or any Ancillary Agreement, other designated Competition/Investment Law authority or as otherwise waived or consented to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), with respect to the Business, Seller shallshall cause the Seller Entities and the Purchased Entities (as applicable) to, and shall use its reasonable best efforts to cause Rexam to cause the Rexam Entities to: (a) operate and (i) carry on the portion of the Business controlled by them in all material respects in the ordinary course of business consistent with past practicepractice and (ii) use its commercially reasonable efforts to maintain and preserve the relationships and goodwill of the Business with its customers, suppliers and others having material business dealings with the Business; (b) not grant, create, assume or otherwise incur any Encumbrance (other than a Permitted Encumbrance on Purchased Assets that are not the Interests or the Purchased Affiliate Interests) on any of the Purchased Assets or any assets of any Purchased Entity, other than in the ordinary course of business and other than to the extent such assets will be Excluded Assets; (c) not sell, transfer or dispose of any material Purchased Assets or material assets of any Purchased Entity, other than the sale of Inventory in the ordinary course of business or in accordance with the Restructuring Steps Plan; (d) use commercially reasonable efforts to preserve intact the goodwill of the Business and the relationships of Seller the Business with its customers, vendors, suppliers, Business Employees distributors, landlords and others having material business relations dealings with the Business; (ce) continue not amend the certificate or articles of incorporation or by-laws (or other comparable corporate charter documents) of any of the Purchased Entities or take any action with respect to maintain any such amendment or any recapitalization, reorganization, liquidation or dissolution of any of the BooksPurchased Entities, Records and Files file a petition in bankruptcy under any provisions of bankruptcy Law on behalf of any Purchased Entity, Seller and its Affiliates exclusively Entity or primarily related Rexam Entity or consent to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely mannerfiling of any bankruptcy petition against any Purchased Entity, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereofSeller Entity or Rexam Entity; (f) refrain from makingnot authorize, changing issue, sell, grant or revoking otherwise dispose of any Tax election; refrain from adopting shares of capital stock of or changing any accounting method Option with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable Purchased Entities, or permit any Encumbrances to be imposed on any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Periodshares; (g) pay and discharge all material Liabilities related (A) not enter into any new Contract that would be a Material Contract under the definition of Material Contract if entered into prior to the date of this Agreement (and that would be a Purchased Assets as they become due Asset and payable Assumed Liability), other than the renewal of a Material Contract in accordance with its terms or in the ordinary course of business, subject business on terms that are not materially less favorable to the Seller’s ability to pursue Business than the terms of the Material Contract being renewed; or (B) not accelerate, terminate, cancel, amend or otherwise modify any Material Contract in good faith any bona fide disputesmaterial respect; (h) not sellincur, lease, license, transfer, abandon, pledge, encumber (assume or guarantee any indebtedness for borrowed money other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practice; (i) in an amount not (i) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technology; (j) not grant any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices exceeding $50 million in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchase, Inventory in amounts outside the ordinary course of business; (l) use commercially reasonable efforts not fail to keep current and in full force and effect or renew any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.aggregate or

Appears in 1 contract

Samples: Equity and Asset Purchase Agreement

Conduct of the Business. From During the period from the date hereof to the Closing, except as otherwise expressly provided in this Agreement, the Seller Entities shall operate the Business only in the ordinary course of business . The Seller Entities shall use their respective reasonable best efforts to preserve intact the present organization of the Business, keep available the services of the present officers and employees of the Business and preserve relationships with customers, suppliers, licensors, licensees, contractors, distributors and others having business dealings with the Business. Without limiting the generality of the foregoing, from the date of this Agreement until to the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1)Closing, except as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure ScheduleEntities shall not, as contemplated by or required without the prior written consent of Parent, to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented the extent related to in writing by Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shallthe Business: (a) operate sell, lease, encumber, transfer or dispose of any assets or rights or acquire any assets or rights which would be included in the Assets, unless in the ordinary course of business, or pursuant to the capital expenditure plan described in Section 4.1(a) of the Disclosure Schedule, or except for the acquisition from Metrovision of North America, Inc. of the 40% minority interest in York Hannover Partnership, a Wisconsin general partnership; (b) engage in any sales of a product (i) with payment terms longer than terms customarily offered by each of the Seller Entities for such product, (ii) at a greater discount from listed prices than customarily offered for such product, other than pursuant to a promotion of a nature previously used in the normal course of business of each of the Seller Entities for such product, (iii) at a price which does not give effect to any previously announced general increase in the list price for such product, (iv) with shipment terms more favorable to the customer than shipment terms customarily offered by each of the Seller Entities for such product, (v) in a quantity greater than the reasonable retail or wholesale (as the case may be) resale requirement of the particular customer or (vi) in conjunction with other benefits to the customer not in the ordinary course of business with such customer; (c) collect any accounts receivables or fail to pay any accounts payable, other than in the ordinary course of business; (d) enter into any material commitment or transaction unless in the ordinary course of business; (e) permit any Asset to suffer any Lien thereupon, other than Permitted Liens; (f) change (or permit to be changed) any accounting (other than with respect to inventory accounting as described in Section 2.18) or Tax procedure or practice or its financial structure or make (or permit to be made) any Tax election or settle or compromise any liability for Taxes; (g) enter into, adopt, amend or terminate any employee benefit plan, increase in any manner the compensation or benefits of any officer or employee or pay any benefit not required by any existing employee benefit plan, or enter into any contract, agreement, commitment or arrangement to do any of the foregoing, except to the extent bound by applicable law and carry on except for normal merit and seniority raises and discretionary bonuses in the Business aggregate not to exceed $10,000 to any individual, granted in the ordinary course of business consistent with past practicepractices; (bh) use commercially reasonable efforts enter into or offer to preserve intact the goodwill of the Business and the relationships of Seller with its customers, vendors, suppliers, Business Employees and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities in connection with the Business (including all Registered IP) in a timely manner, and use commercially reasonable efforts to maintain in effect all material Permits required for the ongoing operation of the Business as presently conducted; (e) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering enter into any closing agreement, settling employment or compromising consulting agreement with any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in person outside the ordinary course of business, subject to unless terminable at will by the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber (other than Permitted Encumbrances), fail to maintain or otherwise dispose of any Purchased Assets, other than the sale of Inventory and other dispositions of assets in the ordinary course of business consistent with past practiceemploying Seller Entity; (i) not (imake any capital expenditures outside the ordinary course of business, except for those included in the capital expenditure plan described in Section 4.1(a) exclusively license, assign or transfer any Purchased Business Intellectual Property or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose of, abandon, or permit to lapse any rights in or to any Purchased Business Intellectual Property or any Purchased Business Technologythe Disclosure Schedule; (j) not grant enter into, amend or terminate any allowances or discounts on Products outside the ordinary course of business or sell Inventory in excess of consumption consistent with past practices material contract, except in the ordinary course of business; (k) not manufacture, or enter into any purchase commitments to purchasetransaction or any contract with any affiliate, Inventory other than transactions on arm's-length terms in amounts outside the ordinary course of business;course; or (l) use commercially reasonable efforts not fail authorize, or commit or agree to keep current and in full force and effect or renew take, any of the material Permits related to the Business; (m) not amend, modify, cancel or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign or modify any material benefit or claim under any Assigned Contract; (o) not grant any Business Employee any increase in compensation or in severance or termination pay, grant any severance or termination pay, or enter into any new employment, deferred compensation or similar agreement with any such employee (except for any retention bonus plan which may be mutually agreed between Seller and Purchaser), or terminate the employment of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws applicable to the Business and, promptly following receipt thereof, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closingforegoing actions.

Appears in 1 contract

Samples: Asset Purchase Agreement (Omnicare Inc)

Conduct of the Business. From the date of this Agreement until the Closing (or until the earlier termination of this Agreement in accordance with Section 11.1), except a) Except (x) as expressly required by applicable Law, as set forth on Schedule 7.1 of the Seller Disclosure Schedule, as contemplated by or required to implement this Agreement or any Ancillary Agreement, or as otherwise waived or consented to in writing by Purchaser Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall: (ay) operate and carry on as required or approved by the Business Bankruptcy Code or any Orders entered by the Bankruptcy Court in the ordinary course Chapter 11 Cases prior to the date of business consistent this Agreement or (z) as otherwise necessary to comply with past practice; applicable Law or as set forth on Section 5.01(b) of the Disclosure Schedules, from the date hereof until the Closing Date (b) or the earlier termination of this Agreement pursuant to Article 10), Sellers shall use commercially reasonable efforts to preserve intact conduct the Business in the Ordinary Course and maintain in all material respect the goodwill of associated with the Business Purchased Assets and the Sellers’ business relationships of Seller with its employees, customers, suppliers, vendors, suppliersclients, Business Employees contractors and others having business relations with the Business; (c) continue to maintain the Books, Records and Files of Seller and its Affiliates exclusively or primarily related to the Business on a basis consistent with past practice; and (d) continue to make all necessary and material filings and payments with Governmental Authorities other Persons in connection with the Business Purchased Assets. (including all Registered IPb) in a timely mannerExcept as otherwise contemplated by Section 5.01(a), and use commercially reasonable efforts to maintain in effect all material Permits as required for the ongoing operation by applicable Law or as set forth on Section 5.01(b) of the Business as presently conducted;Disclosure Schedules, without the prior written consent or express prior written direction of Buyer, from the date hereof until the Closing Date (or the earlier termination of this Agreement pursuant to Article 10), Sellers shall not: (ei) perform all of Seller’s material obligations under the Assigned Contracts in accordance with the terms thereof; (f) refrain from making, changing or revoking any Tax election; refrain from adopting or changing any accounting method with respect to Taxes; refrain from filing any amended Tax Return; refrain from entering into any closing agreement, settling or compromising any Tax claim or assessment; and refrain from consenting to any extension or waiver of the limitation period applicable to any claim or assessment with respect to Taxes; in each case to the extent taking such action would adversely affect the Purchased Assets or the Business in a Post-Closing Tax Period; (g) pay and discharge all material Liabilities related to the Purchased Assets as they become due and payable in the ordinary course of business, subject to the Seller’s ability to pursue in good faith any bona fide disputes; (h) not sell, lease, license, transfer, abandon, pledge, encumber lease or license on an exclusive basis or otherwise create any Encumbrance (other than Permitted Encumbrances), fail to maintain ) or otherwise dispose of any Purchased Assets, other than (x) in the sale of Inventory Ordinary Course and other (y) sales and dispositions of assets in the ordinary course of business consistent with past practiceobsolete or worn- out assets; (iii) not renew, materially amend or modify, terminate (iother than automatically pursuant to its terms), cancel or waive any material rights under, or create any Encumbrance (other than a Permitted Encumbrance) exclusively licenseon, assign or transfer any Purchased Business Intellectual Property of the Material Contracts or any Purchased Business Technology to any Person (including any current or former employee or consultant of Seller or any contractor or commercial partner of Seller); and (ii) dispose ofmaterial Permits, abandonin each case, or permit to lapse any rights other than in or to any Purchased Business Intellectual Property or any Purchased Business Technologythe Ordinary Course; (jiii) not grant change in any allowances material respect their policies or discounts on Products outside the ordinary course of business practices regarding accounts receivable or sell Inventory accounts payable, except as required by Law, a change in GAAP (or authoritative interpretation thereof) or by a Governmental Authority; (iv) make any capital expenditures in excess of consumption consistent with past practices in the ordinary course of business$100,000; (kv) not manufacture, acquire any Person or enter into all or substantially all of the assets of any purchase commitments to purchase, Inventory in amounts Person or make any other investment outside the ordinary course of businessOrdinary Course; (lvi) use commercially incur, assume or guarantee any indebtedness or Liability of any other Person in connection with the Purchased Assets, other than any indebtedness or Liability that will be repaid or assumed by Buyer under the terms hereof at or prior to the Closing or constitute an Excluded Liability; (vii) concede, settle, pay, discharge or satisfy any Proceedings that would constitute a Purchased Asset or Assumed Liability other than, following reasonable efforts advance notice to Buyer, settlements (A) that do not fail to keep current only involve any material obligations on Sellers and in full force and effect or renew any of the (B) that would not have a material Permits related impact to the Business; (mviii) not amendterminate, modify, cancel let lapse or terminate any Assigned Contract (other than terminations or expirations at the end of the stated term after the date hereof); (n) not waive, release, assign materially amend or modify any material benefit insurance policy maintained by any Seller or claim under any Assigned Contractof its Affiliates with respect to any Purchased Assets or any Assumed Liability; (oix) not (A) sell, transfer, assign, abandon, cancel any Purchased Intellectual Property that is material to the Business, (B) let lapse or fail to renew, continue to prosecute, protect or defend, or otherwise dispose of, any Purchased Intellectual Property that is material to the Business, or (C) enter into any Contract regarding the license, sublicense, agreement or permission to use any Purchased Intellectual Property that is material to the Business, other than non-exclusive license agreements in the Ordinary Course; (x) (A) fail to exercise any rights of renewal with respect to any Leased Real Property that by its terms would otherwise expire and such expiration would be material to the Business or (B) enter into any Contract for the sublease of Leased Real Property that is material to the Business; (xi) grant any Business Employee or announce (i) any increase in the compensation of any employee of Sellers or their Affiliates by more than three percent (3%) of such employee’s compensation as of the date of this Agreement (other than as a result of inflation adjustments) or (ii) any material increase to perquisites or benefits (whether through the payment of, agreement to pay or otherwise) of any employee of Sellers or their Affiliates, other than, in severance each case, increases required by applicable Law or termination payrequired by the terms of Seller Plans in effect as of the date hereof; (xii) make any changes in any accounting methods, grant any severance principles or termination paypractices in connection with the Purchased Assets or the Assumed Liabilities except as required by Law, by a change in GAAP (or authoritative interpretation thereof) or by a Governmental Authority; (xiii) except as required by applicable Law, (A) make, change, or rescind any material election or method of accounting relating to Taxes, (B) file any material Tax Return (other than in the Ordinary Course and pursuant to applicable Law) or amend any material Tax Return, (C) enter into any new employmentclosing agreement relating to material Taxes, deferred compensation (D) surrender any material right or similar agreement with claim to a refund of Taxes or commence, settle or compromise any such employee Tax claim or assessment, (except for E) consent to any retention bonus plan which may be mutually agreed between Seller and Purchaser), extension or terminate waiver of the employment statute of any such employee without cause, except in the ordinary course of business consistent with past practice; (p) comply in all material respects with all Laws limitations period applicable to the Business andany Taxes, promptly following receipt thereofTax Returns or Claims for Taxes, give to the Purchaser copies of any notice received from any Governmental Authority or other Person alleging any violation of any such Laws; and (q) not take any material actions that could reasonably be expected to delay the Closing; provided, however, except as expressly provided in this Section 7.1, nothing in this Section 7.1 shall prohibit Seller or its Affiliates from conducting their businesses, including the Business, in their reasonable discretion provided it shall comply with the terms of the Agreement, including this Section 7.1. Nothing contained herein shall give Purchaser, directly or indirectly, the right to control or direct the operations of Seller prior to Closing.or

Appears in 1 contract

Samples: Asset Purchase Agreement

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!