Contract
EXECUTION
COPY
Dated as
of August 1, 2008
By and
among
Waste
Connections of Washington, Inc.,
Land
Recovery, Inc.,
Resource
Investments, Inc., and
the
shareholders of Land Recovery, Inc. and Resource Investments, Inc.
TABLE
OF CONTENTS
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Page
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1.
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SALE
AND PURCHASE OF SUBJECT UNITS
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1
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1.1
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Sale
and Purchase of Subject Units
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1
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(a)
Sale and Purchase
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1
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(b)
Closing
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2
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1.2
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Purchase
Price and Payment
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2
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1.3
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Allocation
of the Purchase Price
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2
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1.4
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Termination
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2
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(a)
By Stakeholders’ Representative
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3
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(b)
By WCWI
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3
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(c)
By Either Party
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3
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(d)
By Mutual Agreement
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3
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(e)
On Termination of HLE Stock Purchase Agreement
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3
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1.5
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Notice
and Effect of Termination
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3
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2.
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REPRESENTATIONS
AND WARRANTIES OF SELLING STAKEHOLDERS
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4
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2.1
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Title
to Subject Units
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4
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2.2
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Authority;
Binding Nature of Agreements
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4
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2.3
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No
Restrictions on Authority
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5
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2.4
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Governmental
Consents; Compliance with Law
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5
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2.5
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Compliance
with Other Instruments
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5
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2.6
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Broker’s
Fee; No Public Offering
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6
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2.7
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Litigation
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6
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2.8
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Information
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6
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2.9
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Limitation
on Selling Stakeholders’ Representations and Warranties
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6
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3.
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REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER
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7
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3.1
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Authority;
Binding Nature of Agreement
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7
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3.2
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No
Restrictions on Authority
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7
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3.3
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Governmental
Consents
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8
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3.4
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Compliance
with Other Instruments
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8
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3.5
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Broker’s
Fee
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8
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3.6
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Litigation
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8
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- i
-
TABLE
OF CONTENTS
(continued)
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Page
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3.7
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Acknowledgement
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8
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3.8
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No
Contractual Restrictions
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8
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3.9
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Investment
Representations
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8
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3.10
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Limitations
on WCWI’s Representations and Warranties
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9
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4.
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CONDITIONS
OF WCWI’S OBLIGATIONS ON CLOSING DATE.
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9
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4.1
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Representations
and Warranties
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9
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4.2
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Conditions
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9
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4.3
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Closing
of HLE Stock Purchase Agreement
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10
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4.4
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HSR
Waiting Period
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10
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4.5
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Governmental
Approvals; Consents to Transfer
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10
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4.6
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No
Litigation
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10
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4.7
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Certificates
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10
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4.8
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Other
Deliveries
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10
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4.9
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Resignations
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10
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5.
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CONDITIONS
OF THE SELLING STAKEHOLDERS’ OBLIGATIONS ON
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CLOSING
DATE
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10
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5.1
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Representations
and Warranties
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11
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5.2
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Conditions
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11
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5.3
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Closing
of HLE Stock Purchase Agreement
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11
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5.4
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HSR
Waiting Period
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11
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5.5
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No
Litigation
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11
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5.6
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Other
Deliveries
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11
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5.7
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Payment
of Purchase Price
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11
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6.
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INDEMNIFICATION
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11
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6.1
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Indemnity
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11
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(a)
Breach
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11
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(b)
Brokerage Fees
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12
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(c)
Taxes
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12
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(d)
Enforcement Actions
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12
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6.2
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Limitations
Indemnification
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12
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- ii
-
TABLE
OF CONTENTS
(continued)
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Page
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6.3
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Notice
of Indemnity Claim
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12
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(a)
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Claims
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12
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(b)
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Defense
by Indemnifying Party
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13
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(c)
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Defense
by Indemnitee
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13
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(d)
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Cooperation
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13
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(e)
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No
Consent to Judgment
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13
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(f)
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Conflicts
of Interest
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14
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(g)
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Service
of Process
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14
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(h)
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Exclusive
Remedy
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14
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6.4
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Liability
for Breaches of Representations and Warranties
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14
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6.5
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No
Exhaustion of Remedies or Subrogation; Right of Setoff
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15
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7.
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ADDITIONAL
COVENANTS
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15
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7.1
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Agreement
to Cooperate
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15
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(a)
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General
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15
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(b)
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Antitrust
Matters
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15
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7.2
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General
Release by Selling Stakeholders
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16
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7.3
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Certain
Tax and Other Matters
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16
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7.4
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Stakeholders’
Representative
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16
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(a)
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Designation
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16
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(b)
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Powers
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17
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7.5
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No-Shop
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17
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7.6
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Obligations
to Xxxx Xxxxxx
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17
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7.7
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Capital
Expenditures of the LLC
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18
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7.8
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Continuing
Obligations for Takings Case
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18
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7.9
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Broker’s
and Finder’s Fees
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18
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8.
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NON-COMPETE
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19
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8.1
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Restrictive
Covenants
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19
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(a)
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Non-Compete
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19
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(b)
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Definitions
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20
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(c)
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Confidential
Information
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20
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- iii
-
TABLE
OF CONTENTS
(continued)
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Page
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(d)
Non-Solicitation
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20
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(e)
No Disparagement
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21
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8.2
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Rights
and Remedies Upon Breach
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21
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(a)
Specific Performance
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21
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(b)
Accounting
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21
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(c)
Blue Penciling
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21
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8.3
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Enforceability
in Jurisdiction
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22
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9.
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MISCELLANEOUS
PROVISIONS
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22
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9.1
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Assignment
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22
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9.2
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Public
Announcements
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22
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9.3
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Counterparts
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22
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9.4
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Notices
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22
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9.5
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Applicable
Law; Attorneys’ Fees
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23
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9.6
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No
Waiver Relating to Claims for Misconduct or Fraud
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23
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9.7
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Payment
of Fees and Expenses
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24
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9.8
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Incorporation
by Reference
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24
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9.9
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Captions
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24
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9.10
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Number
and Gender of Words
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24
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9.11
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Entire
Agreement
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24
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9.12
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Waiver
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24
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9.13
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Severability
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24
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9.14
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Disclosure
Schedule
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24
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(a)
General
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24
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(b)
Supplemental Material
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25
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9.15
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Construction
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25
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9.16
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Facsimile
Execution
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26
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-
iv-
INDEX
Affiliate
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25
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Long
Stock Purchase Agreement
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17
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Agreement
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1
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LRI
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1
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Antitrust
Division
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15
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Misconduct
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12
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business
day
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25
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Purchase
Price
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2
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Claim
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12
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Reasonable
efforts
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26
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Claims
Notice
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13
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Restricted
Period
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20
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Closing
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2
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Restrictive
Covenants
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21
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Closing
Date
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2
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RII
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1
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Confidential
Information
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20
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Sale
Transaction
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17
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Corporation
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1
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Section
2.2 Obligations
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18
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Damages
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11
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Selling
Shareholders
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1
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day
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25
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Selling
Xxxxxxxxxxxx
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0
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Xxxxxxxxxx
Xxxxxxxx
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4
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Selling
Unitholders
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1
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FTC
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15
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Signing Date |
4
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HLE
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1
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Stakeholders’
Representative
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16
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HLE
Stock Purchase Agreement
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1
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Stockholders’
Agreement
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4
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HSR
Act
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5
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Subject
Business
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20
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Indemnifying
Party
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13
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Subject
Membership Interests
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1
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Indemnitee
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11
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Subject
Shares
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1
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Indemnitees
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11
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Subject
Units
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1
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Indemnity
Event
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11
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Supplemental
Material
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25
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Indemnity
Events
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11
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Takings
Case
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18
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knowledge
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26
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Tax
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12
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Liens
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4
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Taxes
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12
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LLC
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1
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Termination
Date
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3
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LLC
Operating Agreement
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4
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Third
Party Claim
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13
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Long
Agreements
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17
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WCWI
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1
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v
THIS EQUITY PURCHASE AGREEMENT
(this “Agreement”) is
entered into as of August 1, 2008, by and among Waste Connections of
Washington, Inc., a Washington corporation (“WCWI”), on the one
hand, and Land Recovery, Inc., a Washington corporation (“LRI”), Resource
Investments, Inc., a Washington corporation (“RII” and, together
with LRI, the “Selling
Unitholders”), and the shareholders of the Selling Unitholders listed on
Schedule 1.2
(collectively, the “Selling Shareholders” and, together with the Selling
Unitholders, the “Selling
Stakeholders”), on the other hand.
WHEREAS, the Selling
Unitholders own the respective membership interests (the “Subject Membership
Interests”) of Xxxxxx County Recycling, Composting and Disposal, LLC, a
Washington limited liability company (the “LLC”) and the
respective shares of capital stock (the “Subject Shares”) of
Xxxxxx County Landfill Management, Inc., a Washington corporation (the “Corporation”) set
forth beside the Selling Unitholders’ names on Schedule 1.2,
which represents, in the aggregate, 49% of the total issued and outstanding
membership interests of the LLC and 49% of the total issued and outstanding
capital stock of the Corporation (the Subject Membership Interests and the
Subject Shares being referred to collectively as, the “Subject
Units”);
WHEREAS, the Selling
Unitholders desire to sell, assign and deliver to WCWI, and WCWI desires to
acquire from the Selling Unitholders, the Selling Unitholders’ entire right,
title and interest in, to and under the Subject Units;
WHEREAS, as a material part of
this Agreement, Waste Connections, Inc., Xxxxxx XxXxx Enterprises, Incorporated,
a Washington corporation (“HLE”), and HLE’s
shareholders entered into a Stock Purchase Agreement (the “HLE Stock Purchase
Agreement”), of even date herewith, whereby Waste Connections, Inc.
agreed to purchase from the HLE shareholders, and the HLE shareholders agreed to
sell to Waste Connections, Inc., all of the issued and outstanding capital stock
of HLE;
NOW, THEREFORE, in
consideration of the foregoing premises and of the mutual agreements,
representations, warranties, provisions and covenants herein contained, the
parties hereto, each intending to be bound hereby, agree as
follows:
1.
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SALE AND PURCHASE OF SUBJECT
UNITS.
|
1.1 Sale and Purchase of Subject
Units.
(a) Sale and
Purchase. On the terms and subject to the conditions of this
Agreement, at the Closing (as defined below) each Selling Unitholder shall sell,
assign, transfer, deliver and convey the Subject Units to WCWI, and WCWI shall
purchase and acquire from each Selling Unitholder, the Selling Unitholder’s
entire right, title and interest in, to and under the Subject
Units. For the avoidance of doubt, WCWI is not assuming, and the
Selling Stakeholders shall remain liable for, any liabilities of the Selling
Stakeholders as the owner, directly or indirectly, of the Subject Units
occurring or otherwise attributable to the period on or prior to the Closing
Date subject to the express terms of this Agreement.
(b) Closing. Subject to
Section 1.4, the closing of the transactions contemplated herein (the
“Closing”)
shall take place contemporaneously with the Closing of the HLE Stock Purchase
Agreement, provided the conditions set forth in Sections 4 and 5
shall have been fulfilled or waived as of such date, or on such other date as
WCWI and the Stakeholders’ Representative shall agree (the “Closing
Date”). The Closing shall be held at the offices of Shartsis
Xxxxxx LLP, Xxx Xxxxxxxx Xxxxx, 00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, at
10:00 a.m. local time, on the Closing Date, or at such other place and time
mutually agreed by WCWI and the Stakeholders’ Representative (as defined in
Section 7.4(a)). At Closing, WCWI and the Selling Stakeholders
shall execute and deliver such instruments and items as are required by this
Agreement or are reasonably requested by the other party relating to
transactions contemplated by this Agreement At the election of WCWI
and the Selling Unitholders, the Closing of this transaction may take place
through an exchange of consideration and documents using overnight courier
service, email or facsimile.
1.2 Purchase Price and
Payment. At the Closing, in full consideration for the purchase and
sale of the Subject Units, (a) WCWI shall pay to the Selling Unitholders
the aggregate amount of one hundred million dollars ($100,000,000.00) (the
“Purchase
Price”), which shall be paid to the Selling Unitholders, by wire
transfer, in the respective amounts and to the respective bank accounts
specified for the Selling Unitholders on Schedule 1.2;
and (b) the Selling Unitholders shall deliver any stock power, membership
power or other transfer instrument necessary to effect the transfer of the
Subject Units in accordance with this Agreement, in a form reasonably acceptable
to the Selling Unitholders and WCWI. In addition, contemporaneously
with the Closing of the purchase and sale hereunder, WCWI shall, and shall cause
all of its Affiliates to, pay all amounts accrued and owed to the LLC as of such
date, and the LLC shall pay all amounts accrued and owned to WCWI and all
of its Affiliates as of such date, and the LLC will distribute to all its
members (Waste Connections, Inc., LRI and RII) all Cash of the LLC as of
such date, including, without limitation, the payments received from WCWI and
its Affiliates (less the payments made to WCWI and its Affiliates), subject to
Section 6.7.6 of the LLC Operating Agreement. All amounts
accrued and owed by the LLC to persons or entities other than WCWI and its
Affiliates shall be paid by the LLC in the ordinary course of business
consistent with past practices. "Cash" for purposes of this Section 1.2
shall mean book cash (bank cash plus outstanding checks), and not solely bank
cash. For the avoidance of doubt, distributions made to the LLC's
members pursuant to this Section 1.2 shall bring the LLC's book cash as of
the Closing Date to zero.
1.3 Allocation of the Purchase
Price. The Purchase Price shall be allocated among the
Restrictive Covenants, the Subject Membership Interests and the Subject Shares
as set forth on Schedule 1.3
attached hereto. This allocation shall be binding on the parties for
federal and state income tax purposes. Notwithstanding the foregoing,
WCWI shall not be limited to such amount for damages arising from breach of the
Restrictive Covenants by the Selling Stakeholders or their
Affiliates.
1.4 Termination. Notwithstanding
anything in this Agreement to the contrary, this Agreement and the obligations
of the parties hereunder may be terminated on or prior to Closing as
follows:
(a) By Stakeholders’
Representative. By the Stakeholders’ Representative
(i) in the event the transactions contemplated by this Agreement have been
prohibited or enjoined by reason of any final, unappealable judgment, decree or
order entered or issued by a court of competent jurisdiction in litigation or
proceedings involving any of the parties hereto that was not entered at the
request or with the support of the Selling Stakeholders and if the Selling
Stakeholders shall have used reasonable efforts to prevent the entry of such
order; (ii) in the event WCWI breaches a representation or warranty of WCWI
contained in this Agreement which has not been cured and is not capable of being
cured prior to the earlier of (A) the expiration of 30 days after notice of
such breach is given by the Stakeholders’ Representative to WCWI and
(B) the Termination Date; or (iii) if WCWI fails to perform in any
material respect any of its covenants contained in this Agreement required to be
performed prior to the Closing and does not cure such failure prior to the
earlier of (A) 30 days after written notice of such failure is given in
writing to WCWI by the Stakeholders’ Representative and (B) the Termination
Date.
(b) By WCWI. By WCWI
(i) in the event the transactions contemplated by this Agreement have been
prohibited or enjoined by reason of any final, unappealable judgment, decree or
order entered or issued by a court of competent jurisdiction in litigation or
proceedings involving any of the parties hereto that was not entered at the
request or with the support of WCWI and if WCWI shall have used reasonable
efforts to prevent the entry of such order; (ii) in the event any Selling
Stakeholder, breaches a representation or warranty of a Selling Stakeholder
contained in this Agreement which has not been cured and is not capable of being
cured prior to the earlier of (A) expiration of 30 days after written
notice of such breach is given by WCWI to the Stakeholders’ Representative and
(B) the Termination Date; (iii) if any of the Selling Stakeholders
fails to perform in any material respect any of their respective covenants
contained in this Agreement required to be performed by a Selling Stakeholder
prior to the Closing and the Selling Stakeholder does not cure such failure
prior to the earlier of (A) 30 days after written notice of such failure is
given in writing to the Stakeholders’ Representative by WCWI and (B) the
Termination Date; or (iv) pursuant to Section 9.14(b).
(c) By Either Party. By
WCWI or the Stakeholders’ Representative if the Closing hereunder shall not have
taken place by December 29, 2008, or, by such later date as shall be agreed on
by an appropriate amendment to this Agreement (the “Termination Date”);
provided that a party shall not have the right to terminate under this
Section 1.4(c) if the conditions precedent to such party’s obligation to
close have been fully satisfied and such party has failed or refused to close
after being requested in writing to close by the other party.
(d) By Mutual Agreement. WCWI and the
Stakeholders’ Representative may terminate this Agreement by mutual
consent.
(e) On Termination of HLE Stock Purchase
Agreement. This Agreement shall
automatically terminate upon any termination of the HLE Stock Purchase
Agreement.
1.5 Notice and Effect of
Termination. On termination of this Agreement, the
transactions contemplated herein shall forthwith be abandoned and all continuing
obligations of the parties under or in connection with this Agreement shall be
terminated and of no further force or effect; provided, however, that nothing
herein shall relieve any party from liability for any
misrepresentation, breach of warranty or breach of covenant
contained in this Agreement prior to such termination. If this
Agreement has terminated due to the breach of any party, such party shall remain
liable for any damages arising from such breach.
2.
|
REPRESENTATIONS AND WARRANTIES
OF SELLING STAKEHOLDERS.
|
The
Selling Stakeholders, jointly and severally, (a) represent and warrant to
WCWI that each of the following representations and warranties is true as of the
date of this Agreement (the “Signing Date”), and
will be true as of the Closing Date, subject only to those exceptions set forth
on a Disclosure Schedule (the “Disclosure Schedule”)
attached hereto as Exhibit A, and (b) agree that such representations
and warranties shall survive the Closing as provided in
Section 6.4:
2.1 Title to Subject
Units. The Selling Unitholders own, and as of the Closing Date
will have, all right, title and interest (economic, legal and beneficial) in and
to all of the respective Subject Units listed beside their names on Schedule 1.2,
which, in the aggregate, constitutes 49% of the total issued and outstanding
membership interests of the LLC and 49% of the total issued and outstanding
capital stock of the Corporation. The Selling Shareholders listed on
Schedule 1.2 own
all of the issued and outstanding capital stock of the Selling
Unitholders. Except as expressly set forth in the Operating Agreement
for the LLC, dated as of March 28, 2001 (the “LLC Operating
Agreement”), and that certain Stockholders’ and Members’ Agreement, by
and among the Corporation, the LLC, Waste Connections, Inc. and the Selling
Unitholders (the “Stockholders’
Agreement”), no option, warrant, call, conversion, right of first refusal
or other right or commitment of any kind exists that obligates any Selling
Unitholder to sell, transfer or convey any of the Subject Units to any
person. On the Closing Date, the Subject Units will be free and clear
of any lien, pledge, claim, hypothecation, charge, mortgage, security interest,
assessment, encumbrance or restriction of any nature, whether arising by
agreement, operation of law or otherwise, except for those imposed by applicable
federal and state securities laws, the LLC Operating Agreement and the
Stockholders Agreement, (“Liens”), and, upon
payment for the Subject Units, WCWI shall acquire good, valid and unencumbered
title to the Subject Units, free and clear of any such Liens.
2.2 Authority; Binding Nature of
Agreements. The Selling Stakeholders have full right, power
and authority to enter into this Agreement, and all documents and agreements
necessary to give effect to the provisions of this Agreement, and to perform
its, his or her obligations hereunder and thereunder. The execution
and delivery of this Agreement by the Selling Stakeholders and the consummation
of the transactions contemplated hereby by the Selling Stakeholders have been
duly authorized by the Board of Directors and shareholders of the Selling
Unitholders, and all other corporate actions and proceedings required to be
taken by or on behalf of the Selling Stakeholders to enter into this Agreement
and consummate the transactions contemplated hereby have been duly and properly
taken. This Agreement and the other agreements or instruments
executed and delivered pursuant to this Agreement, subject to the due
authorization, execution and delivery by WCWI, constitute the legal, valid and
binding obligation of the Selling Stakeholders, enforceable against the Selling
Stakeholders in accordance with its terms, except as limited by
(a) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium, and other laws of general application relating to
or affecting enforcement of creditors’ rights and equity
principles generally and (b) laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies.
2.3 No Restrictions on
Authority. The Selling Stakeholders have not at any time taken
or been the subject of any action that may have an adverse effect on their
ability to comply with or perform any of the covenants or obligations under this
Agreement. There is no proceeding pending, and to the Selling
Stakeholders’ knowledge, no person has threatened to commence any proceeding,
that may have an adverse effect on the ability of the Selling Stakeholders to
comply with or perform any of the covenants or obligations under this
Agreement. No event has occurred, and no claim, dispute or other
condition or circumstance exists, that might directly or indirectly give rise to
or serve as a basis for the commencement of any such proceeding.
2.4 Governmental Consents; Compliance
with Law. Except for any filings required by the
Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 (the “HSR Act”), the LLC
Operating Agreement and the Stockholders Agreement, no consent, approval, order
or authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Selling Stakeholders is required in connection with the consummation of the
transactions contemplated by this Agreement. The Selling Stakeholders
make no representation or warranty regarding whether any consent or approval is
required under (a) any agreement as to which none of the Selling
Stakeholders is a party or bound or (b) any agreement as to which any
Selling Stakeholders is a party or bound that was transferred or assigned to the
LLC or the Corporation in connection with the initial formation
thereof. To the knowledge of each Selling Stakeholder, each Selling
Unitholder’s ownership of the Subject Units has been conducted in all material
respects in accordance with all applicable laws.
2.5 Compliance with Other
Instruments. The execution, delivery and performance of this
Agreement, and any other agreements or instruments executed and delivered
pursuant to this Agreement, and the consummation of the transactions
contemplated hereby, do not and will not result in a violation of, or default
under, any other instrument, judgment, order, writ, decree or contract to which
any Selling Stakeholder is a party or is otherwise known to any Selling
Stakeholder, or an event that results in the creation of any Lien upon the
Subject Units being sold by any Selling Unitholder, except as set forth in the
LLC Operating Agreement and the Stockholders’ Agreement. The
execution, delivery and performance of this Agreement, and any other agreements
or instruments executed and delivered pursuant to this Agreement, and the
consummation of the transactions contemplated hereby, do not and will not
conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default or require any consent under, this
Agreement, or any agreement entered into in connection herewith, or any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which any Selling Stakeholder is a party or by which any Selling
Stakeholder is bound or any applicable laws, except as set forth in the LLC
Operating Agreement and the Stockholders’ Agreement. The Selling
Unitholders have received, or will receive as of the Closing Date, all other
consents or waivers necessary to transfer the Subject Units being sold by the
Selling Unitholder (together with all associated rights) to WCWI, and such
transfers are not subject to any third party right of first refusal, preemptive
or other comparable obligation or restriction except as set forth in the LLC
Operating Agreement and the Stockholders’ Agreement. There are no
agreements or instruments to which the Selling Stakeholders are parties or by
which the Selling Stakeholders are bound that govern the ownership, transfer or
sale of the Subject Units other than the LLC Operating Agreement and the
Stockholders’
Agreement. The Selling Stakeholders make no
representation or warranty regarding compliance with any agreement as to which
none of the Selling Stakeholders is a party or bound.
2.6 Broker’s Fee; No Public
Offering. No person or entity acting on behalf or under the
authority of any Selling Stakeholder is entitled to any broker’s, finder’s or
similar fee or commission in connection with the transactions contemplated by
this Agreement, which fees in all events shall be payable by the Selling
Stakeholders. No Selling Stakeholder has offered, nor has authorized
any person acting on its, his or her behalf to offer, the Subject Units to the
public or engaged in any general solicitation or public advertising with respect
to the offer and sale of the Subject Units.
2.7 Litigation. There
is no action, suit, proceeding or investigation pending against the Selling
Stakeholders or, to the Selling Stakeholders’ knowledge, threatened against the
Selling Stakeholders, the LLC or the Corporation that affects or may affect the
legality, validity or enforceability of this Agreement, or the right of any
Selling Stakeholder to enter into this Agreement, or the ability of any Selling
Stakeholder to consummate the transaction contemplated hereby. There
is no action, suit, or proceeding by any Selling Stakeholder pending or, to the
Selling Stakeholders’ knowledge, threatened against any other person relating to
the Subject Units, the LLC or the Corporation.
2.8 Information. The
Selling Stakeholders have had an opportunity to discuss the LLC’s and the
Corporation’s business, management, financial affairs and the terms and
conditions of the sale of the Subject Units with the LLC’s and the Corporation’s
management and believe they have received all the information they consider
necessary or appropriate for deciding whether to enter into this Agreement and
perform the obligations set forth herein. To the Selling
Stakeholders’ knowledge, there are no facts, events, or circumstances not
disclosed to WCWI or otherwise known to WCWI that reasonably could be expected
to be materially adverse to the business, financial condition or performance of
the LLC, the Corporation or the value of the Subject Units. The
Selling Stakeholders hereby acknowledge that any future sale of the LLC’s
membership interests or of the Corporation’s capital stock could be at a premium
or a discount to the purchase price set forth herein, and such sale could occur
at any time or not at all. The Selling Stakeholders hereby
acknowledge that WCWI has not made any representations regarding the business,
management, financial affairs or prospects of the LLC or the Corporation nor
have the Selling Stakeholders relied on any representation or statement of WCWI,
other than those set forth in this Agreement, in making their investment
decision to sell the Subject Units.
2.9 Limitation on Selling Stakeholders’
Representations and Warranties. WCWI ACKNOWLEDGES AND AGREES
THAT, EXCEPT FOR THE REPRESENTATIONS EXPRESSLY SET FORTH IN THIS SECTION 2 OF
THIS AGREEMENT, (I) THE PURCHASE OF THE SUBJECT UNITS SHALL BE ON AN “AS
IS”, “WHERE IS”, “WITH ALL FAULTS BASIS”, AND (II) NEITHER THE SELLING
STAKEHOLDERS NOR ANY DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS, ACCOUNTANTS,
CONSULTANTS, AGENTS OR REPRESENTATIVES OF THE SELLING STAKEHOLDERS, NOR ANY
PERSON PURPORTING TO REPRESENT ANY OF THE
FOREGOING,
HAVE MADE ANY REPRESENTATION, WARRANTY, GUARANTY, PROMISE, PROJECTION OR
PREDICTION WHATSOEVER WITH RESPECT TO THE SUBJECT UNITS OR THE BUSINESS, ASSETS
OR LIABILITIES OR ANY ASPECT OF THE CORPORATION, LLC OR SUBJECT UNITS, WRITTEN
OR ORAL, EXPRESS OR IMPLIED, ARISING BY OPERATION OF LAW OR OTHERWISE,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. WCWI ACKNOWLEDGES AND AGREES THAT WCWI IS NOT
RELYING ON ANY STATEMENT MADE OR INFORMATION PROVIDED TO WCWI BY THE SELLING
STAKEHOLDERS OR ANY DIRECTORS, OFFICERS, AFFILIATES, EMPLOYEES, ATTORNEYS,
ACCOUNTANTS, CONSULTANTS, AGENTS OR REPRESENTATIVES OF THE SELLING STAKEHOLDERS,
OR ANY PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING, EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY THE SELLING STAKEHOLDERS IN
THIS SECTION 2 OF THIS AGREEMENT.
WCWI’s
Initials ____________
3.
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REPRESENTATIONS AND WARRANTIES
OF THE PURCHASER.
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WCWI
(a) represents and warrants to the Selling Stakeholders that each of the
following representations and warranties is true as of the Signing Date, and
will be true as of the Closing Date, and (b) agrees that such
representations and warranties shall survive the Closing as provided in
Section 6.4.
3.1 Authority; Binding Nature of
Agreement. WCWI has the absolute and full corporate right,
power, and authority to enter into this Agreement, and all documents and
agreements necessary to give effect to the provisions of this Agreement, and
perform its obligations hereunder and thereunder. The execution and
delivery of this Agreement by WCWI and the consummation of the transactions
contemplated hereby by WCWI have been duly authorized by WCWI’s and by Waste
Connections, Inc.’s Board of Directors or by the Executive Committee of such
Board of Directors and all other corporate actions and proceedings required to
be taken by or on behalf of WCWI have been duly and properly
taken. This Agreement and all other agreements and documents executed
in connection herewith have been duly and validly executed and delivered by WCWI
and, subject to the due authorization, execution and delivery by the Selling
Stakeholders, constitute the legal, valid and binding obligations of WCWI
enforceable against WCWI in accordance with their respective terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally and by general principles of
equity.
3.2 No Restrictions on
Authority. WCWI has not at any time taken or been the subject
of any action that may have an adverse effect on its ability to comply with or
perform any of the covenants or obligations under this
Agreement. There is no proceeding pending, and to WCWI’s knowledge,
no person has threatened to commence any proceeding, that may have an adverse
effect on the ability of WCWI to comply with or perform any of the covenants or
obligations under this Agreement. No event has occurred, and no
claim, dispute or other
condition or circumstance exists, that might directly or
indirectly give rise to or serve as a basis for the commencement of any such
proceeding.
3.3 Governmental
Consents. Except for any filings required by the HSR Act or
the Securities Exchange Act of 1934, as amended, no consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
WCWI is required in connection with the consummation of the transactions
contemplated by this Agreement.
3.4 Compliance with Other
Instruments. The execution, delivery and performance of this
Agreement, and any other agreements or instruments executed and delivered
pursuant to this Agreement, and the consummation of the transaction contemplated
hereby, do not and will not result in a violation of, or default under, any
instrument, judgment, order, writ, decree or contract to which WCWI is a party
or is otherwise known to WCWI. The execution, delivery and
performance of this Agreement, and any other agreements or instruments executed
and delivered pursuant to this Agreement, and the consummation of the
transactions contemplated hereby, do not and will not conflict with or result in
a breach or violation of any of the terms or provisions of, or constitute a
default or require any consent under, this Agreement, or any agreement entered
into in connection herewith, or any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which WCWI is a party or by which
WCWI is bound, or any applicable laws, except as set forth in the LLC Operating
Agreement and the Stockholders’ Agreement.
3.5 Broker’s Fee. No
person has acted directly or indirectly as a broker, finder or financial advisor
for WCWI in connection with the transactions contemplated by this Agreement and
no person is entitled to any broker’s, finder’s, financial advisory or similar
fee or payment in respect thereof based in any way on any agreement, arrangement
or understanding made by or on behalf of WCWI that shall result in any fee or
other payment payable by the Selling Stakeholders.
3.6 Litigation. There
is no action, suit, proceeding or investigation pending or, to WCWI’s knowledge,
threatened against WCWI that affects or may affect the legality, validity or
enforceability of this Agreement, or the right of WCWI to enter into this
Agreement, or the ability of WCWI to consummate the transactions contemplated
hereby. There is no action, suit, or proceeding by WCWI pending or,
to WCWI’s knowledge, threatened against any other person relating to the Subject
Units, the LLC or the Corporation.
3.7 Acknowledgement. WCWI
hereby acknowledges that any future sale of the Subject Units could be at a
premium or a discount to the purchase price set forth herein, and such sale
could occur at any time or not at all.
3.8 No Contractual
Restrictions. No provisions exist in any article, document, or
instrument to which WCWI is a party or by which it is bound that would be
violated by consummation of the transactions contemplated by this
Agreement.
3.9 Investment
Representations. Waste Connections, Inc. has owned 51% of the
issued and outstanding membership interests of the LLC and 51% of the issued and
outstanding
Equity
Purchase Agreement
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capital stock of the Corporation, has actively participated as the
majority owner in the management of the LLC and Corporation and is fully
familiar with the operations, assets and liabilities of the LLC and
Corporation. WCWI is acquiring the Subject Units pursuant to this
Agreement for its own account, for investment and not with a view to resale or
distribution.
3.10 Limitations on WCWI’s Representations
and Warranties. THE SELLING STAKEHOLDERS ACKNOWLEDGE AND AGREE
THAT, EXCEPT FOR THE REPRESENTATIONS EXPRESSLY SET FORTH IN THIS SECTION 3
OF THIS AGREEMENT, NEITHER WCWI NOR ANY DIRECTORS, OFFICERS, EMPLOYEES,
AFFILIATES, ATTORNEYS, ACCOUNTANTS, CONSULTANTS, AGENTS OR REPRESENTATIVES OF
WCWI, NOR ANY PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING, HAS MADE ANY
REPRESENTATION, WARRANTY, GUARANTY, PROMISE, PROJECTION OR PREDICTION WHATSOEVER
WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, WRITTEN OR ORAL, EXPRESS
OR IMPLIED, ARISING BY OPERATION OF LAW OR OTHERWISE, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. THE SELLING STAKEHOLDERS ACKNOWLEDGE AND AGREE THAT THEY ARE
NOT RELYING ON ANY STATEMENT MADE OR INFORMATION PROVIDED TO THE SELLING
STAKEHOLDERS BY WCWI OR ANY DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES,
ATTORNEYS, ACCOUNTANTS, CONSULTANTS, AGENTS OR REPRESENTATIVES OF WCWI, OR ANY
PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING, EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY WCWI IN THIS SECTION 3 OF
THIS AGREEMENT.
Stakeholders’
Representative’s Initials: ____________
4.
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CONDITIONS OF WCWI’S
OBLIGATIONS ON CLOSING DATE.
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The
obligations of WCWI under this Agreement are subject to the satisfaction, on or
before the date set forth in this Section 4 or, if no date is set forth herein,
at or before Closing, of all of the following conditions precedent, unless
waived in writing by WCWI:
4.1 Representations and
Warranties. All representations and warranties of the Selling
Stakeholders contained in this Agreement or in any statement, Exhibit, Schedule,
certificate or document delivered by any of the Selling Stakeholders under this
Agreement shall be true, correct and complete on and as of the date when made
and at all times prior to the Closing Date, shall be deemed to be made again on
the Closing Date, and shall then be true, correct and complete as of the Closing
Date.
4.2 Conditions. The
Selling Stakeholders shall have performed, satisfied and complied with all
covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by them on or before the Closing Date.
Equity
Purchase Agreement
PCRCD
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4.3 Closing of HLE Stock Purchase
Agreement. The closing of the HLE Stock Purchase Agreement and
the consummation of the transactions contemplated thereby shall have
occurred.
4.4 HSR Waiting
Period. The waiting period under the HSR Act, if applicable to
the consummation of this Agreement and the transactions contemplated hereby,
shall have expired or been terminated.
4.5 Governmental Approvals; Consents to
Transfer. The consent of any governmental agency from whom the
LLC, the Corporation, the Selling Stakeholders or WCWI must obtain consent in
order to (a) execute this Agreement and consummate the transactions
contemplated herein, and (b) effect a direct or indirect transfer of any
contract, license or permit required as a result of the consummation of the
transactions contemplated by this Agreement shall have been received (and shall
be in a form that is reasonably acceptable to WCWI), and each other party whose
consent is required to the transactions contemplated by this Agreement, shall
have consented to such transactions (and shall be in a form that is reasonably
acceptable to WCWI).
4.6 No Litigation. None
of the transactions contemplated hereby shall have been enjoined by any court or
by any federal or state governmental branch, agency, commission or regulatory
authority and no suit or other proceeding challenging the transactions
contemplated hereby shall have been threatened or instituted and no
investigative or other demand shall have been made by any federal or state
governmental branch, agency, commission or regulatory authority.
4.7 Certificates. The Selling Stakeholders
shall have delivered to WCWI any certificates representing the Subject Units,
free and clear of all Liens, accompanied, in the case of the Subject Units, by a
stock power or membership interest power, as applicable, duly executed in blank
by each Selling Unitholder.
4.8 Other
Deliveries. The President of each Selling Stakeholder shall
have delivered to WCWI a certificate, dated as of the Closing Date, in form and
substance satisfactory to WCWI, certifying to the fulfillment of the conditions
set forth in Sections 4.1 and 4.2.
4.9 Resignations. The
Selling Stakeholders shall have caused each officer and director of the LLC
and/or the Corporation representing such Selling Stakeholders to deliver a
resignation as an officer and/or director of the LLC or the Corporation
together, in the case of each officer and director who is not a party to this
Agreement, with a general release releasing the LLC and the Corporation from all
obligations under any indemnification agreements, the charter documents of the
LLC or the Corporation, or otherwise.
5.
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CONDITIONS OF THE SELLING
STAKEHOLDERS’ OBLIGATIONS ON CLOSING
DATE.
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The
obligations of the Selling Stakeholders to WCWI under this Agreement are subject
to the fulfillment by WCWI on or before the Closing Date of each of the
following conditions precedent, unless waived in writing by the Stakeholders’
Representative:
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Purchase Agreement
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5.1 Representations and
Warranties. All representations and warranties of WCWI
contained in this Agreement or in any statement, Exhibit, Schedule, certificate
or document delivered by WCWI under this Agreement shall be true, correct and
complete on and as of the date when made and at all times prior to the Closing
Date, shall be deemed to be made again on the Closing Date, and shall then be
true, correct and complete as of the Closing Date.
5.2 Conditions. WCWI
shall have performed, satisfied and complied with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by it on or before the Closing Date.
5.3 Closing of HLE Stock Purchase
Agreement. The closing of the HLE Stock Purchase Agreement and
the transactions contemplated thereby shall have occurred.
5.4 HSR Waiting
Period. The waiting period under the HSR Act, if applicable to
the consummation of this Agreement and the transactions contemplated hereby,
shall have expired or been terminated.
5.5 No Litigation. None
of the transactions contemplated hereby shall have been enjoined by any court or
by any federal or state governmental branch, agency, commission or regulatory
authority and no suit or other proceeding challenging the transactions
contemplated hereby shall have been threatened or instituted and no
investigative or other demand shall have been made by any federal or state
governmental branch, agency, commission or regulatory authority.
5.6 Other
Deliveries. The President of WCWI shall have delivered to the
Stakeholders’ Representative a certificate, dated as of the Closing Date, in
form and substance satisfactory to the Stakeholders’ Representative, certifying
to the fulfillment of the conditions set forth in Sections 5.1 and
5.2.
5.7 Payment of Purchase
Price. WCWI shall have delivered the Purchase Price payable by
it as specified in Section 1.2.
6.
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INDEMNIFICATION.
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6.1 Indemnity. The
Selling Stakeholders, jointly and severally, but subject to the limitations set
forth in Section 6.2, covenant and agree that they will indemnify and hold
harmless WCWI, the LLC, the Corporation, and their respective directors,
officers, managers, employees and agents and their respective successors and
assigns (individually an “Indemnitee” and
collectively the “Indemnitees”), from
and after the date of this Agreement, against any and all losses, damages,
assessments, fines, penalties, adjustments, liabilities, claims, deficiencies,
costs and expenses (including specifically, but without limitation, reasonable
attorneys’ fees, court costs, witness fees and expenses of investigation)
(collectively, “Damages”), identified
by an Indemnitee in a Claims Notice (as defined in Section 6.3(a)), or
asserted by an Indemnitee in litigation commenced against any Selling
Stakeholder with respect to each of the following contingencies (each, an “Indemnity Event”, and
collectively, the “Indemnity
Events”):
(a) Breach. Any misrepresentation,
breach of warranty, or nonfulfillment of any agreement or covenant on the part
of any Selling
Stakeholder pursuant to the terms of this
Equity
Purchase Agreement
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Agreement or any misrepresentation in or omission from any
Exhibit, Schedule, list, certificate, or other instrument furnished or to be
furnished to WCWI pursuant to the terms of this Agreement, regardless of
whether, in the case of a breach of a representation or warranty, WCWI relied on
the truth of such representation or warranty or had any knowledge of any breach
thereof.
(b) Brokerage Fees. Any claim by any person
for brokerage or finders’ fees or commissions or similar payments based on any
agreement or understanding alleged to have been made by any such person with any
of the Selling Stakeholders in connection with any of the transactions
contemplated by this Agreement.
(c) Taxes. 49% of any
Taxes incurred by the Corporation or the LLC for periods ending on or prior to
the Closing to the extent such Taxes exceed the reserve therefor as of the
Closing Date on the financial statement of the Corporation or the LLC, as
applicable. For the purposes of this Agreement, “Tax” or “Taxes” refers
(i) to any and all federal, state, local and foreign taxes, assessments and
other governmental charges, duties, impositions and liabilities relating to
taxes, including taxes based on or measured by gross receipts, income, profits,
sales, use and occupation, and value added, ad valorem, transfer, franchise,
withholding, payroll, recapture, employment, excise, fuel and property taxes,
together with all interest, penalties and additions imposed with respect to such
amounts, (ii) any obligations under any agreements or arrangements with any
other person with respect to such amounts and including any liability for Taxes
of a predecessor entity, and (iii) any liability for amounts described in
clause (i) of this Section as a result of being a member of an affiliated,
consolidated, combined or unitary group.
(d) Enforcement Actions. All actions, suits,
arbitrations, proceedings, demands, assessments, adjustments, costs and expenses
(including specifically, but without limitation, reasonable attorneys’ fees and
expenses of investigation) incident to any of the foregoing.
6.2 Limitations
Indemnification. Except for fraud, the maximum amount that the
Indemnitees can recover as a result of one or more Indemnity Events from any
Selling Stakeholder pursuant to the provisions hereof for Claims shall not in
the aggregate exceed the amount of consideration such Selling Stakeholder
receives under this Agreement. For the purposes of this
Section 6, “Misconduct” shall
mean willful misconduct, misappropriation or intentional misrepresentation or
concealment. In the event that a representation contained in this
Agreement is breached and such representation is qualified by words or phrases
such as “material,” “materially,” “immaterial,” “immaterially,” “nonmaterial,”
“substantially,” or words of similar import, such qualifiers shall be
disregarded for purposes of determining if a breach occurred or calculating the
amount of any obligation of indemnity arising pursuant to this
Section 6. Notwithstanding the disclosure contained on the
Disclosure Schedule to qualify any representation or warranty, any Damages
resulting from the subject matter so disclosed shall be subject to
indemnification pursuant to this Section 6.
6.3 Notice of Indemnity
Claim.
(a) Claims. In the event that any
claim (“Claim”)
is hereafter asserted against or arises with respect to any Indemnitee as to
which such Indemnitee may be entitled to
Equity
Purchase Agreement
PCRCD
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indemnification hereunder, the Indemnitee shall notify the
Stakeholders’ Representative on behalf
of each and all of the Selling Stakeholders (the “Indemnifying Party”),
in writing thereof (the “Claims Notice”)
within 60 days after (i) receipt of written notice of commencement of any
third party litigation against such Indemnitee (a “Third Party Claim”);
(ii) receipt by such Indemnitee of written notice of any Third Party Claim
pursuant to an invoice, notice of claim or assessment against such Indemnitee;
or (iii) such Indemnitee becomes aware of the existence of any other event
in respect of which indemnification may be sought from the Indemnifying Party
(including, without limitation, any inaccuracy of any representation or warranty
or breach of any covenant). The Claims Notice shall describe the
Claim and the specific facts and circumstances in reasonable detail, and shall
indicate the amount, if known, or an estimate, if possible, of the losses that
have been or may be incurred or suffered by the Indemnitee.
(b) Defense by Indemnifying
Party. The Indemnifying Party shall have the right to assume
the defense of any Third Party Claim with the Indemnifying Party’s own counsel
(which counsel shall be reasonably satisfactory to the Indemnitee) if the
Indemnifying Party provides written notice of its election to assume such
defense within 10 days after the Indemnifying Party has received a Claims Notice
with respect to such Third Party Claim and such Third Party Claim is solely for
money damages and the cumulative total of all Claims (including such Claim) does
not exceed the limit set forth in Section 6.2 at the time the Claim is
made; provided, however, the Indemnifying Party must conduct the defense of the
Third Party Claim actively and diligently in order to preserve the Indemnifying
Party’s rights and rights of the Indemnitee. The Indemnitee may
participate, at the Indemnitee’s own expense, in the defense of any Claim
assumed by the Indemnifying Party.
(c) Defense by
Indemnitee. If, within 10 days of the Indemnifying Party’s
receipt of a Claims Notice, the Indemnifying Party shall not have elected to
defend the Third Party Claim or if in the reasonable judgment of the Indemnitee
the Indemnifying Party fails to adequately defend the Third Party Claim, the
Indemnitee shall have the right to assume control of the defense and/or
compromise of such Claim, and the costs and expenses of such defense, including
reasonable attorneys’ fees, shall be added to the Claim. The
Indemnifying Party shall promptly, and in any event within 10 days after demand
therefor, reimburse the Indemnitee for the costs of defending the Claim,
including attorneys’ fees and expenses.
(d) Cooperation. The party assuming the
defense of any Claim shall keep the other party reasonably informed at all times
of the progress and development of its or their defense of and compromise
efforts with respect to such Claim and shall furnish the other party with copies
of all relevant pleadings, correspondence and other papers. In
addition, the parties to this Agreement shall cooperate with each other and make
available to each other and their representatives all available relevant records
or other materials required by them for their use in defending, compromising or
contesting any Claim. Subject to Section 6.4, the failure to
timely deliver a Claims Notice or otherwise notify the Indemnifying Party of the
commencement of such actions in accordance with this Section 6.3 shall not
relieve the Indemnifying Party from the obligation to indemnify hereunder except
to the extent that the Indemnifying Party establishes by competent evidence that
it has been prejudiced thereby.
(e) No Consent to
Judgment. The Indemnifying Party will not consent to the entry
of any judgment or enter into any settlement with respect to the Third-Party
Claim
Equity
Purchase Agreement
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without the prior consent of the Indemnitee (which consent shall
not be unreasonably withheld or delayed), provided that the Indemnifying Party
may consent to the entry of a judgment or enter into a settlement if the
judgment or proposed settlement (i) includes an unconditional release of
all liability of each Indemnitee with respect to such Third-Party Claim, and
(ii) involves only the payment of money damages by the Indemnifying Party
and does not impose an injunction or other equitable relief upon the Indemnitee
or impose any restrictions on the operation of the business of the Indemnitee or
Affiliates of the Indemnitee. So long as the Indemnifying Party has
assumed and is conducting the defense of the Third-Party Claim in accordance
with Section 6.3(b), the Indemnitee will not consent to the entry of any
judgment or enter into any settlement with respect to the Third-Party Claim
without the prior written consent of the Indemnifying Party (which consent shall
not be unreasonably withheld or delayed by the Indemnifying Party).
(f) Conflicts of
Interest. In the event both the Indemnitee and the
Indemnifying Party are named as defendants in an action or proceeding initiated
by a third party, they shall both be represented by the same counsel (on whom
they shall reasonably agree), unless such counsel, the Indemnitee or the
Indemnifying Party shall determine that such counsel has a conflict of interest
in representing both the Indemnitee and the Indemnifying Party in the same
action or proceeding and the Indemnitee and the Indemnifying Party do not waive
such conflict to the satisfaction of such counsel.
(g) Service of
Process. The Indemnifying Party hereby consents to the
non-exclusive jurisdiction of any court in which a Third Party Claim is brought
against any Indemnitee for purposes of any Claim that an Indemnitee may have
under this Agreement with respect to such Third Party Claim or the matters
alleged therein, and agree that process may be served on the Indemnifying
Parties with respect to such claim anywhere in the world at the address set
forth in, or determined pursuant to, Section 9.4.
(h) Exclusive
Remedy. Except for fraud, the indemnification provisions of
this Section 6 shall be the exclusive remedy for any Claim by an Indemnitee for
monetary damages arising under this Agreement or from the transactions
contemplated hereby provided that nothing in this Section 6 shall be deemed to
be the exclusive remedy or shall limit the remedies of any party with respect to
the breach or nonfulfillment by any party of any other obligation or covenant in
this Agreement, or any of the agreements contemplated by this Agreement or
entered into pursuant hereto, that is required to be satisfied or fulfilled
after the Closing Date. In addition, the parties shall be entitled to
pursue any claims for non-monetary relief to which they may be entitled at law
or in equity.
6.4 Liability for Breaches of
Representations and Warranties. The representations and
warranties of the parties contained in this Agreement and in any certificate,
Exhibit or Schedule delivered pursuant hereto, or in any other writing delivered
pursuant to the provisions of this Agreement other than the HLE Stock Purchase
Agreement, the liability of the party making such representations and warranties
for breaches thereof, and the indemnification obligations of the Selling
Stakeholders under Section 6.1, shall survive the consummation of the
transactions contemplated hereby and expire thirty (30) days after the
expiration of the applicable statute of limitations (irrespective of the date of
discovery), except the indemnification obligations of the Selling Stakeholders
under Section 6.1(c) shall expire on the
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Purchase Agreement
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later of the second anniversary of the Closing Date or, as to any
Claim for which a Claims Notice was given before such date pursuant to such
Section, the final resolution of such Claim. The parties hereto in
executing and delivering and in carrying out the provisions of this Agreement
are relying solely on the representations, warranties, Schedules, Exhibits,
agreements and covenants contained in this Agreement, or in any writing or
document delivered pursuant to the provisions of this Agreement, and not upon
any representation, warranty, agreement, promise or information, written or
oral, made by any person other than as specifically set forth herein or
therein.
6.5 No Exhaustion of Remedies or
Subrogation; Right of Setoff. Each Selling Stakeholder waives
any right to require any Indemnitee to (a) proceed against the LLC, the
Corporation, any other Selling Stakeholder or any other person; or
(b) pursue any other remedy whatsoever in the power of any
Indemnitee. WCWI may, but shall not be obligated to, set off against
any and all payments due any Selling Stakeholder any amount to which any
Indemnitee is entitled to be indemnified hereunder with respect to any Indemnity
Event. Such right of set off shall be separate and apart from any and
all other rights and remedies that the Indemnitees may have against the Selling
Stakeholder or their successors. No consent of any Selling
Stakeholder shall be required for any assignment or reassignment of the rights
of any Indemnitee under this Section 6.
7.
|
ADDITIONAL
COVENANTS.
|
7.1 Agreement to
Cooperate.
(a) General. Subject to
the terms and conditions herein provided, each of the parties hereto shall use
reasonable efforts to take, or cause to be taken, all action and to do, or cause
to be done, all things necessary, proper or advisable under applicable laws and
regulations to consummate and make effective the transactions contemplated by
this Agreement, to effect all necessary registrations, filings and submissions
and to lift any injunctive or other legal bar to this transaction (and, in such
case, to proceed with the transaction as expeditiously as possible); provided,
however, that in using its reasonable efforts no party hereto shall be required
to take any action or to agree to any condition, including without limitation
any condition imposed by any government authority with respect to the transfer
of any License or Permit or obtaining any Required Governmental Consent, that,
in such party’s reasonable judgment, imposes a materially adverse financial
burden or operating condition on such party.
(b) Antitrust
Matters. Without limitation of the foregoing, if required by
applicable law, the parties hereto undertake and agree to file as soon as
practicable, and in any event within 5 days after the Signing Date, a
Notification and Report Form under the HSR Act with the federal Trade Commission
(“FTC”) and the
Antitrust Division of the Department of Justice (the “Antitrust
Division”). WCWI, the LLC, the Corporation and the Selling
Stakeholders, as applicable, shall (i) respond as promptly as practicable
to any inquiries received from the FTC or the Antitrust Division for additional
information or documentation and to all inquiries and requests received from any
State Attorney General or other governmental authority in connection with
antitrust matters and (ii) not extend any waiting period under the HSR Act
or enter into any agreement with the FTC or the Antitrust Division not to
consummate the transactions contemplated by this Agreement, except with the
prior consent of the other parties
Equity
Purchase Agreement
PCRCD
15
hereto. Each party hereto shall promptly notify the
other parties of any communication to that party from the FTC, the Antitrust
Division, any State Attorney General or any other governmental entity and permit
the other parties to review in advance any proposed communication to any of the
foregoing.
7.2 General Release by Selling
Stakeholders. Each Selling Stakeholder (and, if applicable,
such Selling Stakeholder in his or her capacity as an officer and/or director of
the LLC or the Corporation) hereby fully releases and discharges the LLC and the
Corporation, and their respective directors, officers, managers, agents and
employees, from all rights, claims and actions, known or unknown, of any kind
whatsoever, which such Selling Stakeholder (and, if applicable, such Selling
Stakeholder in his or her capacity as an officer and/or director of the LLC or
the Corporation) now has against the Corporation and the LLC, and their
respective directors, officers, agents and employees, arising out of or relating
to events arising prior to or on the Closing Date, except compensation
(including accrued vacation) as an employee of the LLC or the Corporation for
current periods expressly described and specifically excepted from such release
on Schedule 7.2. Specifically, but not by way of limitation,
each Selling Stakeholder (and, if applicable, such Selling Stakeholder in his or
her capacity as an officer and/or director of the LLC or the Corporation) waives
any right of indemnification, contribution or other recourse against the LLC or
the Corporation which he or she now has or may hereafter have against the LLC or
the Corporation with respect to representations, warranties or covenants made in
this Agreement by the Selling Stakeholders.
7.3 Certain Tax and Other
Matters. Each Selling Stakeholder acknowledges that WCWI has
indicated its intention to make an election under Section 754 of the Code and its
state equivalent, if any. Each Selling Stakeholder agrees that WCWI,
in its discretion, may make such election as long as it does not have a
materially adverse affect on any Selling Stakeholder; provided, however, that
such election shall be made no later than the due date for such
election. If such election is made by WCWI, the Selling Stakeholders
will cooperate with WCWI as reasonably requested by WCWI in connection
therewith, including promptly signing and returning any related documents or
forms. WCWI shall reasonably cooperate with the Selling Stakeholders
with respect to matters involving the Corporation and the LLC and the ownership
of the Subject Units by the Selling Stakeholders prior to the Closing, including
matters relating to the Tax returns and any Tax audits, appeals, claims or
litigation with respect to such Tax returns or the preparation of such Tax
returns. In connection therewith, WCWI shall make available to the
Shareholders such files, documents, books and records of the LLC and the
Corporation for inspection and copying as may be reasonably requested by the
Selling Stakeholders and shall cooperate with the Selling Stakeholders with
respect to retaining information and documents which relate to such
matters.
7.4 Stakeholders’
Representative.
(a) Designation. In order to administer
efficiently the rights and obligations of the Selling Stakeholders under this
Agreement, the Selling Stakeholders hereby designate and appoint Xxxxxx XxXxx as
the Stakeholders’ Representative (the “Stakeholders’
Representative”) to serve as the Stakeholders’ representative for the
limited purposes and as set forth in this Agreement. Xxxxxx XxXxx
shall serve as the Stakeholders’ Representative until s/he resigns or is
otherwise unable or unwilling to serve. In the event that the
Stakeholders’
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Purchase Agreement
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Representative resigns from such position or is otherwise unable
or unwilling to serve, the remaining Selling Stakeholders shall select a
successor representative to fill such vacancy, shall provide prompt written
notice to WCWI of such change and such substituted representative shall then be
deemed to be the Stakeholders’ Representative for all purposes of this
Agreement.
(b) Powers. Each
Selling Stakeholder hereby appoints the Stakeholders’ Representative as such
Selling Stakeholder’s agent, proxy and attorney-in-fact, with full power of
substitution, for all purposes set forth in this Agreement, including, without
limitation, the full power and authority on such Selling Stakeholder’s behalf
(i) to consummate the transactions contemplated by this Agreement;
(ii) to disburse any funds received hereunder to the Selling Stakeholders;
(iii) to execute and deliver on behalf of each Selling Stakeholder any
amendment of or waiver under this Agreement, and to agree to resolution of all
Claims hereunder; (iv) to retain legal counsel and other professional
services, at the expense of the Selling Stakeholders, in connection with the
performance by the Stakeholders’ Representative of this Agreement including
without limitation all actions taken on behalf of the Selling Stakeholders as an
Indemnifying Party pursuant to Section 6; and (v) to do each and every
act and exercise any and all rights which any Selling Stakeholder is permitted
or required to do or exercise under this Agreement and the other agreements,
documents and certificates executed in connection herewith. Each of
the Selling Stakeholders agrees that such agency and proxy are coupled with an
interest, are therefore irrevocable without the consent of the Stakeholders’
Representative and shall survive the death, bankruptcy or other incapacity of
any Selling Stakeholder. Each of the Selling Stakeholders hereby
agrees that any amendment or waiver under this Agreement, and any action taken
on behalf of the Selling Stakeholders to enforce the rights of the Selling
Stakeholders under this Agreement, and any action taken with respect to any
Claim (including any action taken to object to, defend, compromise or agree to
the payment of such Claim), shall be effective if approved in writing by the
Stakeholders’ Representative, and that each and every action so taken shall be
binding and conclusive on every Selling Stakeholder, whether or not such Selling
Stakeholder had notice of, or approved, such amendment or waiver.
7.5 No-Shop. From the
Signing Date to the earlier of the Closing and the Termination Date, no Selling
Stakeholder shall initiate, solicit, discuss, negotiate, encourage or provide
information to facilitate, and no Selling Stakeholder shall cause or knowingly
permit any officer, director or employee of any Selling Stakeholder, or any
counsel, accountant, investment banker, financial advisor or other agent
retained by it or them, to initiate, solicit, negotiate, encourage or provide
information to facilitate, any proposal or offer to acquire all or any
substantial part of the Subject Units, whether for cash, securities or any other
consideration or combination thereof (any such transactions being referred to
herein as a “Sale
Transaction”). The Stakeholder Representative shall
immediately notify WCWI after receipt by any Selling Stakeholder of any written
proposal for a Sale Transaction. Such notice to WCWI shall be made
orally and in writing.
7.6 Obligations to Xxxx
Xxxxxx. WCWI is aware of the following agreements
(the “Long
Agreements”): (i) that certain Stock Purchase Agreement,
dated as of December 26, 1995, by and among Xxxxx X. Xxxx (as “Seller”
thereunder) and Xxxxxx Xxxxxxxxx, Xxxx Xxxx and Xxxxxx Xxxx-Xxxxxx (as “Buyers”)
(the “Long Stock
Purchase Agreement”), and (ii) that certain Stock Purchase
Agreement, dated as of January 29, 2001, by and among Xxxxxx Xxxxxxxxx,
Xxxx Xxxx and Xxxxxx Xxxx (as “Sellers” thereunder) and Xxxxx X. XxXxx, acting
in
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Purchase Agreement
PCRCD
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her individual capacity and as Personal Representative of the
Estate of Xxxxxx XxXxx (as “Buyers” thereunder), including that certain
Assumption and Indemnity Agreement entered into as of January 29, 2001 in
connection therewith by Xxxxx X. XxXxx in her personal capacity and as Personal
Representative of the Estate of Xxxxxx XxXxx. From and after the
Closing, WCWI shall assume and pay those certain payment obligations set forth
in Section 2.2 of the Long Stock Purchase Agreement (the “Section 2.2
Obligations”), as and when they are due, and indemnify the Selling
Stakeholders and hold them harmless from any failure to pay when due any such
amount. In certain circumstances, under Article VI of the Long Stock
Purchase Agreement, the Seller has the right to accelerate the Section 2.2
Obligations. As long as the actions or omissions of WCWI following
the Closing Date (excluding those related to the performance of this Agreement
and the consummation of the transactions contemplated hereby) are not the events
that give any Seller under the Long Agreements the right to accelerate the
Section 2.2 Obligations, if the Section 2.2 Obligations are accelerated,
the Selling Stakeholders shall pay the accelerated amount due to the Seller and
shall be subrogated to the rights of the Seller. Thereafter, WCWI
shall make all future payments of the Section 2.2 Obligations to the Selling
Stakeholders as if they were the original Seller under the Long Stock Purchase
Agreement and the Section 2.2 Obligations had not been
accelerated. Otherwise, except for the Section 2.2 Obligations,
the Selling Stakeholders shall be solely liable for, and shall, subject to
Section 6, indemnify, defend and hold harmless any Indemnitee from and
against, any Damages arising from, related to or in connection with the Long
Agreements. At Closing, WCWI and the Selling Stakeholders shall enter
into and execute an Assignment and Assumption Agreement in a form acceptable to
WCWI and the Selling Stakeholders evidencing the assumption of the foregoing
payment obligations.
7.7 Capital Expenditures of the
LLC. WCWI and the Selling Stakeholders have agreed that the
only capital expenditures that will be made by the LLC between the Signing Date
and the Closing Date shall be those set forth on Schedule 7.7, and WCWI and
each Selling Stakeholder shall not directly or indirectly authorize, cause,
empower or allow the LLC to make any other or additional capital expenditures
between such dates.
7.8 Continuing Obligations for Takings
Case. One of the assets of LRI and RII is the right to pursue
the claims and actions under Resource Investments, Inc. and Land Recovery, Inc.
v. United States of America, case no. 98-419L, filed on May 4, 1998, in the
United States Federal Court of Claims and the related costs, claims, causes of
action, lawsuits and rights relating thereto or arising therefrom (the “Takings
Case”). WCWI shall reasonably cooperate with the Selling
Stakeholders, at the Selling Stakeholders’ expense, with respect to matters
involving the Takings Case. In connection therewith, WCWI shall make
available to the Selling Stakeholders such files, documents, books and records
of the LLC and Corporation for inspection and copying as may be reasonably
requested by the Selling Stakeholders and shall cooperate with the Selling
Stakeholders with respect to retaining information and documents which relate to
the Takings Case.
7.9 Broker’s and Finder’s
Fees. WCWI, on the one hand, and the Selling Stakeholders, on
the other hand, shall pay and be responsible for any broker’s, finder’s or
financial advisory fee incurred by such party in connection with the
transactions contemplated by this Agreement.
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Purchase Agreement
PCRCD
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8.
|
NON-COMPETE.
|
8.1 Restrictive
Covenants. Each of the Selling Stakeholders and their
respective Affiliates acknowledges that (a) WCWI, as the purchaser of the
Subject Units, is and will be engaged in the same business as the Subject
Business (as defined in Section 8.1(b)(ii)); (b) the Selling
Stakeholders and their Affiliates are intimately familiar with the Subject
Business; (c) the Subject Business is currently conducted in the State of
Washington and WCWI intends to continue the Business in the State of Washington
and intends, by acquisition or otherwise, to expand the Subject Business into
other geographic areas where it is not presently conducted; (d) the Selling
Stakeholders and their Affiliates have had access to trade secrets of and
confidential information concerning the Subject Business; (e) the
agreements and covenants contained in this Section 8 are essential to
protect the Subject Business and the goodwill being acquired; and (f) the
Selling Stakeholders and their Affiliates have the means to support themselves
and their dependents other than by engaging in a business substantially similar
to the Subject Business and the provisions of this Section 8 will not impair
such ability. Each Selling Stakeholder covenants and agrees as follows:
(a) Non-Compete. During
the Restricted Period (as defined in Section 8.1(b)(i)), the Selling
Stakeholders and their Affiliates shall not, without the prior written consent
of WCWI, which consent may be withheld in WCWI’s sole and absolute discretion,
anywhere within the State of Washington, directly or indirectly, acting
individually or as the owner, shareholder, partner, member or employee of any
entity other than WCWI or one of its subsidiaries, directly or indirectly,
(i) own or operate a business competitive with or similar to the Subject
Business, including without limitation engaging in the ownership or operation of
a solid waste collection, transportation, disposal and/or composting business,
transfer facility, recycling facility, materials recovery facility or landfill;
(ii) whether or not for compensation, enter the employ of, or render any
personal services to or for the benefit of, or assist in or facilitate the
solicitation of customers for, or receive remuneration in the form of salary,
commissions or otherwise from, any business similar to the Subject Business,
provided that (A) the Selling Stakeholders may provide lobbying services
relating to the solid waste industry in general and general business consulting
services that are unrelated to the Subject Business in each case that do not
involve the use or disclosure of any Confidential Information of the LLC or the
Corporation, and (B) the descendents of the Selling Stakeholders may enter the
employ of, or render personal services to businesses similar to the Subject
Business for compensation as long as they do not (x) hold a director,
officer or other policy-making or managerial position, (y) participate in any
bid or proposal to engage in any business similar to the Business or (z) violate
any other provision of this Section 11.1(a); (iii) as owner or lessor of
real estate or personal property, rent to or lease any facility, equipment or
other assets to any business, other than the LLC, the Corporation, WCWI or any
of their respective Affiliates, engaged in the Subject Business; or
(iv) receive or purchase a financial interest in, make a loan to, or make a
gift in support of, any enterprise engaged in the Subject Business in any
capacity, including, without limitation, as a sole proprietor, partner,
shareholder, member, officer, director, principal, agent, trustee or lender;
provided, however, that any of
the Selling Stakeholders and their Affiliates may own, directly or indirectly,
solely as an investment, securities of any business traded on any national
securities exchange or NASDAQ, provided that such Selling Stakeholder or
Affiliate is not a controlling person of, or a member of a group that controls,
such business and further
Equity
Purchase Agreement
PCRCD
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provided that such Selling Stakeholder or Affiliates does not, in
the aggregate, directly or indirectly, own 2% or more of any class of securities
of such business.
(b) Definitions. For purposes of this
Agreement:
(i) The
term “Restricted
Period” shall mean the period beginning as of the date of this Agreement
and ending 5 years thereafter; provided, however, that if a court of competent
jurisdiction determines that such period is unenforceable, Restricted Period
shall mean the period beginning as of the date of this Agreement and ending 4
years thereafter; provided, however, that if a court of competent jurisdiction
determines that such period is unenforceable, Restricted Period shall mean the
period beginning as of the date of this Agreement and ending 3 years thereafter;
provided, however, that if a court of competent jurisdiction determines that
such period is unenforceable, Restricted Period shall mean the period beginning
as of the date of this Agreement and ending 2 years thereafter provided,
however, that if a court of competent jurisdiction determines that such period
is unenforceable, Restricted Period shall mean the period beginning as of the
date of this Agreement and ending 1 year thereafter, or such other period as the
court shall determine to be reasonable. As to any Selling Stakeholder
or an Affiliate of any Stakeholder, the Restricted Period shall be extended by
the number of days in any period in which such Selling Stakeholder or Affiliate
thereof is determined by a court of competent jurisdiction to be in default or
breach of this Section 8.1.
(ii)The term “Subject
Business”
means municipal solid waste, industrial non-hazardous waste, commercial
solid waste, construction and demolition waste, green or yard waste, electronic
waste or any other waste or residual product collection, processing, transfer,
transport, recycling or disposal.
(c) Confidential
Information. Each of the Selling Stakeholders and their
Affiliates shall keep secret and retain in strictest confidence, and shall not
use for the benefit of themselves or others, any and all data and information
relating to the Subject Business (“Confidential
Information”), including, without limitation, know-how, trade secrets,
customer lists, vehicle routing, supplier lists, details of contracts, pricing
policies, operational methods, marketing plans or strategies, bidding
information, practices, policies or procedures, product development techniques
or plans, and technical processes; provided, however, that the term “Confidential
Information” shall not include information that (i) is or becomes
generally available to the public other than as a result of disclosure by any of
the Selling Stakeholders or their Affiliates or (ii) is general knowledge
in the solid waste handling and landfill business and not specifically related
primarily to the Subject Business of the LLC or the
Corporation. Notwithstanding the foregoing, the Selling Stakeholders
and their Affiliates may disclose and discuss confidential information in
connection with any legal proceeding and shall provide WCWI prior written notice
of such disclosure at least 48 hours before such disclosure is made, if
possible.
(d) Non-Solicitation. Without
the consent of WCWI, which may be granted or withheld by WCWI in its discretion,
during the Restricted Period, neither the Selling Stakeholders nor any of their
Affiliates shall solicit any employees of the LLC or the Corporation or their
respective Affiliates, (except for the Selling Stakeholders or any of their
Affiliates who are employees of the LLC or the Corporation or their respective
Affiliates) to
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Purchase Agreement
PCRCD
20
leave the employ of the LLC, the Corporation, WCWI or their
respective Affiliates and join any Selling Stakeholder or any of their
Affiliates in any business endeavor owned or pursued by any Selling Stakeholder,
nor shall any Selling Stakeholder hire any employee of the LLC, the Corporation,
WCWI or their respective Affiliates within 60 days after such employee’s
employment with any such entity terminates for any reason (except for the
Selling Stakeholders or any of their Affiliates who are employees of the LLC or
the Corporation or their respective Affiliates).
(e) No
Disparagement. From and after the date hereof, neither the
Selling Stakeholders, on the one hand, nor WCWI, on the other hand, shall, in
any way or to any person or entity or governmental or regulatory body or agency,
denigrate or derogate the others or any of such others’ Affiliates, or any
officer, director, employee, product, service or procedure of any such company
or others whether or not such denigrating or derogatory statements shall be true
and whether or not such statements are based on acts or omissions which are
learned by any party after the date hereof or on acts or omissions which occur
after the date hereof, or otherwise. This paragraph does not apply to
the extent that testimony is required by legal or regulatory process, provided
that the party required to give such testimony gives the other party not less
than five (5) days’ prior written notice of such proposed
testimony. In addition to all other rights and remedies under
applicable Law, the parties shall be entitled to have the provisions of this
Section 8.1(e) specifically enforced by a court of competent jurisdiction
and to injunctive relief to enforce the terms of this Section 8.1(e) and to
restrain the other parties from any violation hereof.
8.2 Rights and Remedies Upon
Breach. If any Selling Stakeholder or Affiliate of the Selling
Stakeholder breaches, or threatens to commit a breach of, any of the provisions
of Section 8.1 (the “Restrictive
Covenants”), WCWI shall have the following rights and remedies, each of
which rights and remedies shall be independent of the others and severally
enforceable, and each of which is in addition to, and not in lieu of, any other
rights and remedies available to WCWI at law or in equity:
(a) Specific Performance. Each Selling Stakeholder
agrees that any breach or threatened breach of the Restrictive Covenants would
cause irreparable injury to WCWI and that money damages would not provide an
adequate remedy to WCWI. Accordingly, in addition to any other rights
or remedies, WCWI shall be entitled to have the Restrictive Covenants
specifically enforced by any court of competent jurisdiction, and to injunctive
relief to enforce the terms of the Restrictive Covenants and to restrain such
Selling Stakeholder or Affiliate from any violation thereof.
(b) Accounting. The right and remedy to
require each Selling Stakeholder to account for and pay over to WCWI all
compensation, profits, monies, accruals, increments or other benefits derived or
received by the Selling Stakeholder as the result of any transactions
constituting a breach of the Restrictive Covenants.
(c) Blue Penciling. Each Selling Stakeholder
acknowledges and agrees that the Restrictive Covenants are reasonable and valid
in prohibited business activity and geographical and temporal scope and in all
other respects. If the business activities, period of time or
geographical area covered by the Restrictive Covenants should be deemed too
extensive
Equity
Purchase Agreement
PCRCD
21
by any court, then the parties intend that the Restrictive
Covenants be construed to cover the maximum scope of business activities, period
of time and geographical area (not exceeding those specifically set forth
herein), if any, as may be permissible under applicable law. If any
court determines that any of the Restrictive Covenants, or any part thereof, is
unenforceable because of the scope of the business activities covered, the
duration or the geographic area, such court shall reduce the scope, duration or
area of such provision, as the case may be, to the minimum extent necessary to
render it enforceable and, in its reduced form, such provision shall then be
enforced.
8.3 Enforceability in
Jurisdiction. WCWI and the Selling Stakeholders intend to and
hereby confer jurisdiction to enforce the Restrictive Covenants upon the courts
of any jurisdiction within the geographic scope of the Restrictive
Covenants. If the courts of any one or more of such jurisdictions
hold the Restrictive Covenants unenforceable by reason of the breadth of such
scope or otherwise, such determination shall not bar or in any way affect WCWI’s
right to the relief provided above in the courts of any other jurisdiction
within the geographic scope of the Restrictive Covenants as to breaches of such
covenants in such other respective jurisdictions, such covenants as they relate
to each jurisdiction being, for this purpose, severable into diverse and
independent covenants.
9.
|
MISCELLANEOUS
PROVISIONS.
|
9.1 Assignment. This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto, the successors or assigns of WCWI and the heirs, legal representatives
or assigns of the Selling Stakeholders; provided, however, that any such
assignment shall be subject to the terms of this Agreement and shall not relieve
the assignor of its or his responsibilities under this
Agreement. Neither any Selling Stakeholder nor WCWI shall assign or
otherwise transfer this Agreement without the prior written consent of the other
parties, provided that WCWI shall have the right to transfer or assign this
Agreement to an Affiliate, but such transfer or assignment will not relieve WCWI
of any liability or responsibility under this Agreement.
9.2 Public
Announcements. Except as required by law, no party shall make
any public announcement or filing with respect to the transactions provided for
herein prior to the Closing without the prior written consent of the
Stakeholders’ Representative, in the case of a proposed disclosure by WCWI, or
WCWI, in the case of a proposed disclosure by any Selling
Stakeholder.
9.3 Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same
instrument.
9.4 Notices. All
notices, requests, demands and other communications hereunder shall be deemed to
have been duly given if in writing and either delivered personally, sent by
facsimile transmission or by nationally recognized overnight delivery service,
or mailed by postage prepaid registered or certified U.S. mail, return receipt
requested, to the addresses designated below or such other addresses as may be
designated in writing by notice given hereunder, and shall be effective upon
personal delivery or facsimile transmission thereof or upon delivery by
registered or certified U.S. mail or 1 business day following deposit with a
nationally recognized overnight delivery service:
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Purchase Agreement
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If
to the Selling Stakeholders:
|
Xxxxxx
XxXxx
0000
Xxxxxx Xxxx X.X.
Xxxxxxx,
XX 00000
Telephone
No.: (000) 000-0000
|
With
a copy to:
|
Hillis,
Clark, Xxxxxx & Xxxxxxxx
500
Xxxxxxx Building
0000
Xxxxxx Xxxxxx
Xxxxxxx,
XX 00000-0000
Attention: Xxxxx
X. Xxxx, Xx. Esq.
Telephone
No.: (000) 000-0000
Facsimile
No.: (000) 000-0000
|
If
to WCWI:
|
Waste
Connections of Washington, Inc.
00
Xxxx Xxxxx Xxxxxx, Xxxxx 000
Xxxxxx,
XX 00000-0000
Attention: Xxxxxx
X. Xxxxxxxxxxxx
Telephone
No.: (000) 000-0000
Facsimile
No.: (000) 000-0000
|
With
a copy to:
|
Shartsis
Xxxxxx LLP
Xxx
Xxxxxxxx Xxxxx, 00xx Xxxxx
Xxx
Xxxxxxxxx, XX 00000
Attention: Xxxxx
X. Xxxxxx, Esq.
Telephone
No.: (000) 000-0000
Facsimile
No.: (000) 000-0000
|
9.5 Applicable Law; Attorneys’
Fees. Except as otherwise stated, this Agreement shall be
governed by and construed in accordance with the laws of the State of
Washington without
giving effect to its conflict of laws provisions. In the event of any
dispute or controversy between WCWI, on the one hand, and Selling Stakeholders,
on the other hand, relating to the interpretation of this Agreement or to the
transactions contemplated hereby, the prevailing party shall be entitled to
recover from the other party reasonable attorneys’ fees and expenses incurred by
the prevailing party, as awarded by the court. Such award shall
include post-judgment attorney’s fees and costs and those on any
appeal.
9.6 No Waiver Relating to Claims for
Misconduct or Fraud. Notwithstanding anything herein to the
contrary other than the limitation set forth in Section 6.2, the liability of
any party under this Agreement shall be in addition to, and not exclusive of,
any other liability that such party may have at law or equity based on such
party’s Misconduct or fraud. Notwithstanding anything in this
Agreement to the contrary other than the limitation set forth in Section 6.2,
none of the provisions set forth in this Agreement shall be deemed a waiver by
any party to this Agreement of any right or remedy which such party may have at
law or equity based on any other party’s Misconduct or fraud, nor shall any such
provisions limit, or be deemed to limit (a) the amounts of recovery sought
or awarded in any such claim for Misconduct or fraud; (b) the time period
during which such a claim for Misconduct may be brought, or (c) the
recourse which any such party may seek against another party with respect to
such a claim for Misconduct
Equity
Purchase Agreement
PCRCD
23
or fraud. Notwithstanding the foregoing, nothing in
this Section shall allow any party to recover more than once for damages or
claims based on the same set of circumstances.
9.7 Payment of Fees and
Expenses. Whether or not the transactions herein contemplated
shall be consummated, each party hereto will pay its own fees, expenses and
disbursements incurred in connection herewith and all other costs and expenses
incurred in the performance and compliance with all conditions to be performed
hereunder, except that WCWI shall bear the fees and other costs incurred in
connection with filing the Notification and Report Form under, and compliance
with, the HSR Act.
9.8 Incorporation by
Reference. All Schedules and Exhibits attached hereto are
incorporated herein by reference as though fully set forth at each point
referred to in this Agreement.
9.9 Captions. The
captions in this Agreement are for convenience only and shall not be considered
a part hereof or affect the construction or interpretation of any provisions of
this Agreement.
9.10 Number and Gender of
Words. Whenever the singular number is used herein, the same
shall include the plural where appropriate, and shall apply to all of such
number, and to each of them, jointly and severally, and words of any gender
shall include each other gender where appropriate.
9.11 Entire
Agreement. This Agreement (including the Schedules and
Exhibits hereto) and the other documents delivered pursuant hereto constitute
the entire agreement and understanding among the parties hereto and supersede
any prior agreement and understanding relating to the subject matter of this
Agreement. This Agreement may be modified or amended only by a
written instrument executed or approved by WCWI and the Selling
Stakeholders.
9.12 Waiver. No waiver
by any party hereto at any time of any breach of, or compliance with, any
condition or provision of this Agreement to be performed by any other party
hereto may be deemed a waiver of similar or dissimilar provisions or conditions
at the same time or at any prior or subsequent time.
9.13 Severability. If
any provision of this Agreement or the application of any provision shall be
held by a court of competent jurisdiction to be prohibited or unenforceable in
any jurisdiction, such provision shall, as to such jurisdiction, be ineffective
to the extent of such prohibited unenforceability. The remaining
provisions of this Agreement shall otherwise remain in full force and effect and
any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction.
9.14 Disclosure
Schedule.
(a) General. Any matter
disclosed on the Disclosure Schedule to this Agreement shall be deemed to have
been disclosed with respect to every Section hereof that is referred to on the
Disclosure Schedule by cross reference so long as the nature of the matter
disclosed is obvious from a fair reading of the Disclosure Schedule on which the
matter is disclosed. Nothing in the Disclosure Schedule will be
deemed adequate to disclose an exception
Equity
Purchase Agreement
PCRCD
24
to a representation or warranty made herein, unless the Disclosure
Schedule identifies the Section hereof that is subject to the exception with
reasonable particularity and describes the relevant facts in reasonable
detail. Without limiting the generality of the foregoing, the mere
listing on the Disclosure Schedule (or inclusion of a copy attached to the
Disclosure Schedule) of a document or other item will not be deemed adequate to
disclose an exception to a representation or warranty made herein (unless the
representation or warranty has to do with the existence of the document or other
item itself). Any matter disclosed on the Disclosure Schedule shall
be deemed to qualify a representation or warranty contained in Section 2,
regardless of whether such representation or warranty expressly refers to the
Disclosure Schedule, and to have been disclosed on every other Schedule that
refers to such Schedule by cross reference, so long as the nature of the matter
disclosed is obvious from a fair reading of the Disclosure Schedule on which the
matter is disclosed. The due diligence review by WCWI or any of its
representatives or agents shall in no way affect or alter the representations
and warranties made by the Selling Stakeholders.
(b) Supplemental
Material. After the Signing Date, but not more than five (5)
business days prior to the Closing Date, the Selling Stakeholders shall have the
right to supplement or amend the Disclosure Schedule with respect to any matter
hereafter arising or discovered after the delivery of the Disclosure Schedule as
provided herein (the “Supplemental
Material”). If any Supplemental Material discloses facts that,
absent such disclosure, would constitute a material breach of the Selling
Stakeholders’ representations or warranties, WCWI shall notify the Stakeholders’
Representative thereof within five (5) business days after receipt of the
applicable Supplemental Material, and the Selling Stakeholders shall have five
(5) business days to cure any such breach, and if not cured within such five (5)
business-day period, WCWI may terminate this Agreement by delivering a
termination notice to the Stakeholders’ Representative pursuant to Section
1.4(b) within five (5) days after expiration of the five (5) business-day cure
period. The termination notice must specify the representation or
warranty breached, identify the specific facts in any Supplemental Material that
constitute the breach, and describe why the breach is material. If
the Agreement shall not have been terminated by WCWI during such five-day
(5-day) period, WCWI shall have waived the right to terminate the Agreement
based on such Supplemental Material and to bring any action for
misrepresentation, breach of warranty or breach of covenant contained in this
Agreement based upon such Supplemental Material, if true and correct, and such
Supplemental Material, if true and correct, shall be deemed to qualify the
representation or warranty contained in Section 2 as required hereunder in
a timely manner for all purposes under this Agreement.
9.15 Construction. The
language in all parts of this Agreement must be in all cases construed simply
according to its fair meaning and not strictly for or against any
party. Unless expressly stated otherwise, “including” means
“including but not limited to” and all references herein to a “day” are deemed to be
a reference to a calendar day, and all references to “business day” mean
any day of the year other than a Saturday, Sunday or a public or bank holiday in
Washington or California. Unless expressly stated otherwise,
cross-references herein refer to provisions within this Agreement and are not
references to the overall transaction or to any other document. For
purposes of this Agreement, the term “Affiliate” means,
with respect to any person, any person that directly or indirectly through one
or more intermediaries controls, or is controlled by, or is under common control
with such person, and in the case of a corporation includes directors and
officers, in the case of individuals includes the individual’s spouse, father,
Equity
Purchase Agreement
PCRCD
25
father-in-law, mother, mother-in-law, grandfather, grandmother,
brothers, brothers-in-law, sisters, sisters-in-law, sons-in-law,
daughters-in-law, children and grandchildren, and in the case of a trust
includes the grantors, trustees and beneficiaries of the
trust. Wherever reference is made in this Agreement to the “knowledge” of the
Selling Stakeholders, such term means the actual knowledge of the Selling
Stakeholders, or of any current officer or director of any Selling Stakeholder,
or any knowledge which should have been obtained by any such person upon such
reasonable inquiry as would be undertaken by a reasonable business
person. In the case of a Selling Stakeholder that is a trust, the
term “knowledge” means the actual knowledge of the trustee or trustees of the
trust or any knowledge which should have been obtained by the trustee or
trustees upon such reasonable inquiry as would be undertaken by a reasonable
business person. “Reasonable efforts”
means the efforts that a reasonable person desirous of achieving the result
would use in similar circumstances to ensure that such result is achieved as
soon as reasonably practicable.
9.16 Facsimile
Execution. The exchange of copies of this Agreement and of
signature pages by facsimile transmission or by electronic transmission in Adobe
Acrobat format shall constitute effective execution and delivery of this
Agreement as to the parties and may be used in lieu of the original Agreement
for all purposes. Signatures of the parties transmitted by facsimile
transmission or by electronic transmission in Adobe Acrobat format shall be
deemed to be their original signatures for all purposes. At the
request of any party, any facsimile or electronic document shall be re-executed
in original form by the parties who executed the facsimile or electronic
document. No party may raise the use of a facsimile machine or the
fact that any signature was transmitted through the use of a facsimile machine
as a defense to the enforcement of this Agreement or any amendment or other
document executed in compliance with this Section.
[Signatures
appear on the following page]
Equity
Purchase Agreement
PCRCD
26
IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Equity Purchase Agreement as of
the date first above written.
WCWI:
|
SELLING
UNITHOLDERS:
|
WASTE
CONNECTIONS OF WASHINGTON, INC.
By:
/s/ Xxxxxx X.
Xxxxxxxxxxxx
Xxxxxx X.
Xxxxxxxxxxxx
Chief Executive
Officer
|
LAND RECOVERY,
INC.
By:
/s/ Xxxxx X.
XxXxx
Name,
Title: President
|
CONSENTED
AND AGREED TO WITH RESPECT
TO
THE TRANSFER OF THE SUBJECT UNITS:
XXXXXX
COUNTY LANDFILL
MANAGEMENT,
INC.
By:
/s/ Xxxxxx X.
Xxxxxxxxxxxx
Xxxxxx X.
Xxxxxxxxxxxx
Chief Executive
Officer
XXXXXX
COUNTY RECYCLING, COMPOSTING
AND
DISPOSAL, LLC
By: Xxxxxx
County Landfill Management, Inc.
By: /s/ Xxxxxx X.
Xxxxxxxxxxxx
Xxxxxx
X. Xxxxxxxxxxxx
Chief
Executive Officer
|
RESOURCE
INVESTMENTS, INC.
By:
/s/ Xxxxx X.
XxXxx
Name,
Title: President
SELLING
SHAREHOLDERS:
/s/
Xxxxx X.
XxXxx
Xxxxx
X. XxXxx
/s/ Xxxxxx
XxXxx
Xxxxxx
XxXxx
/s/
Xxxxxxx
XxXxx
Xxxxxxx
XxXxx
/s/
Xxxxxx X.
XxXxx
Xxxxxx
X. XxXxx
/s/
Xxxxxxx
XxXxx-Xxxxx
Xxxxxxx
XxXxx-Xxxxx
/s/
Xxxxxx
XxXxx-Xxxxxxxx
Xxxxxx
XxXxx-Xxxxxxxx
/s/
Xxxxx XxXxx
Xxxxxx
Xxxxx
XxXxx Xxxxxx
Xxxxxx
and Xxxxx XxXxx Trust
By: /s/ H. Xxxxxx XxXxx,
Xx.
H. Xxxxxx XxXxx,
Xx.
, Trustee
Xxxxxx
X. XxXxx Marital Trust
By: /s/ Xxxxx X.
XxXxx
Xxxxx X.
XxXxx
, Trustee
|
Equity
Purchase Agreement
PCRCD
S-1
Exhibit
A
Disclosure
Schedule
Exhibit
A
Equity
Purchase Agreement
PCRCD
Schedule
1.2
Unitholder
Information
Name
and Wiring
Instructions
|
Subject
Membership
Interests
Held
|
Subject
Shares
Held
|
Amount
of Purchase
Price
Payable
|
Land
Recovery, Inc.
|
|||
Resource
Investments, Inc.
|
List
of Selling Shareholders
Schedule
1.2
Equity
Purchase Agreement
PCRCD
Schedule
1.3
Allocation
of Purchase Price
Restrictive
Covenants:
$____________
Subject
Membership
Interests:
$____________
Subject
Shares:
$____________
Schedule
1.3
Equity
Purchase Agreement
PCRCD
Schedule
7.2
Employee
Compensation Excluded from Release
Schedule
7.2
Equity
Purchase Agreement
PCRCD
Schedule
7.6
Form
of Assignment and Assumption Agreement for Long Obligations
Schedule
7.6
Equity
Purchase Agreement
PCRCD
Schedule
7.7
Approved
Capital Expenditures of LLC
Schedule 7.7
Equity Purchase
Agreement
PCRCD