EXECUTION COPY
Exhibit 2.2
AMENDED AND RESTATED
STOCK PURCHASE AGREEMENT
Between
MACQUARIE INVESTMENT HOLDINGS, INC.
and
MACQUARIE INFRASTRUCTURE ASSETS INC.
Dated as of August 18, 2004
TABLE OF CONTENTS
Page
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ARTICLE I
DEFINITIONS
SECTION 1.01. Certain Defined Terms..............................................................................2
SECTION 1.02. Definitions........................................................................................8
ARTICLE II
PURCHASE AND SALE
SECTION 2.01. Purchase and Sale of the Shares and Redemption.....................................................9
SECTION 2.02. Purchase Price.....................................................................................9
SECTION 2.03. Closing ...........................................................................................9
SECTION 2.04. Closing Deliveries by the Seller...................................................................9
SECTION 2.05. Closing Deliveries by the Purchaser...............................................................10
ARTICLE III
REPRESENTATIONS AND WARRANTIES
OF THE SELLER
SECTION 3.01. Organization, Authority and Qualification of the Seller...........................................10
SECTION 3.02. Organization, Authority and Qualification of the Company..........................................11
SECTION 3.03. Subsidiaries......................................................................................11
SECTION 3.04. Capitalization....................................................................................11
SECTION 3.05. No Conflict.......................................................................................12
SECTION 3.06. Consents and Approvals............................................................................12
SECTION 3.07. Litigation........................................................................................12
SECTION 3.08. Taxes ............................................................................................12
SECTION 3.09. Stock Purchase Agreements.........................................................................14
SECTION 3.10. Environmental Matters.............................................................................14
SECTION 3.11. Brokers ..........................................................................................15
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
OF THE PURCHASER
SECTION 4.01. Organization and Authority of the Purchaser.......................................................15
SECTION 4.02. No Conflict.......................................................................................15
SECTION 4.03. Consents and Approvals............................................................................16
SECTION 4.04. Brokers ..........................................................................................16
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ARTICLE V
ADDITIONAL AGREEMENTS
SECTION 5.01. Conduct of Business Prior to the Closing..........................................................16
SECTION 5.02. Access to Information.............................................................................17
SECTION 5.03. Confidentiality...................................................................................17
SECTION 5.04. Regulatory and Other Authorizations; Notices and Consents.........................................18
SECTION 5.05. Notice of Developments............................................................................18
SECTION 5.06. No Solicitation or Negotiation....................................................................19
SECTION 5.07. Release of Indemnity Obligations..................................................................19
SECTION 5.08. Further Assurances................................................................................19
SECTION 5.09. Further Action....................................................................................20
SECTION 5.10. Change of Control.................................................................................20
SECTION 5.11. Cash Distributions................................................................................20
ARTICLE VI
TAX MATTERS
SECTION 6.01. Preparation and Filing of Tax Returns; Payment of Taxes...........................................20
SECTION 6.02. Transfer and Similar Taxes........................................................................20
SECTION 6.03. Tax Indemnification...............................................................................20
SECTION 6.04. Contests..........................................................................................21
SECTION 6.05. Miscellaneous.....................................................................................22
ARTICLE VII
INDEMNIFICATION
SECTION 7.01. Survival of Representations and Warranties........................................................23
SECTION 7.02. Indemnification by the Seller.....................................................................23
SECTION 7.03. Indemnification by the Purchaser..................................................................24
SECTION 7.04. Limits on Indemnification.........................................................................24
SECTION 7.05. Limits on Indemnification with respect to General Aviation........................................24
SECTION 7.06. Tax Treatment.....................................................................................25
SECTION 7.07. Exclusive Remedy..................................................................................25
ARTICLE VIII
CONDITIONS TO CLOSING
SECTION 8.01. Conditions to Obligations of the Seller...........................................................25
SECTION 8.02. Conditions to Obligations of the Purchaser........................................................26
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ARTICLE IX
TERMINATION, AMENDMENT AND WAIVER
SECTION 9.01. Termination.......................................................................................27
SECTION 9.02. Effect of Termination.............................................................................28
ARTICLE X
GENERAL PROVISIONS
SECTION 10.01. Expenses..........................................................................................28
SECTION 10.02. Notices...........................................................................................28
SECTION 10.03. Public Announcements..............................................................................29
SECTION 10.04. Severability......................................................................................29
SECTION 10.05. Entire Agreement..................................................................................29
SECTION 10.06. Assignment........................................................................................30
SECTION 10.07. Amendment.........................................................................................30
SECTION 10.08. Waiver ...........................................................................................30
SECTION 10.09. No Third Party Beneficiaries......................................................................30
SECTION 10.10. Waiver of Jury Trial..............................................................................30
SECTION 10.11. Governing Law.....................................................................................30
SECTION 10.12. Counterparts......................................................................................31
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DISCLOSURE SCHEDULE
The Disclosure Schedule shall include the following Sections:
3.06 Consents and Approvals
3.08 Taxes
3.09 Stock Purchase Agreement Amendments
4.03 Consents and Approvals
5.01 Conduct of Business Prior to the Closing
8.02(e) Consents and approvals
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AMENDED AND RESTATED STOCK PURCHASE AGREEMENT (this "Agreement"),
dated as of August 18, 2004, between MACQUARIE INVESTMENT HOLDINGS, INC., a
Delaware corporation, (the "Seller"), and MACQUARIE INFRASTRUCTURE ASSETS INC.,
a Delaware corporation or its wholly owned subsidiary (the "Purchaser").
WHEREAS, the Seller owns all the outstanding shares of common stock,
par value $0.01 per share (the "Common Stock"), of North America Capital Holding
Company, a Delaware corporation (the "Company");
WHEREAS, on June 7, 2004, the parties hereto entered into a stock
purchase agreement (the "Original Agreement") providing for the purchase of all
the outstanding shares of Common Stock of the Company by the Purchaser;
WHEREAS, the parties hereto wish to amend and restate the Original
Agreement to the extent provided herein;
WHEREAS, the Seller entered into the Atlantic Stock Purchase
Agreement to acquire Executive Air Support, Inc., a Delaware corporation
("Atlantic") and pursuant to the Atlantic Stock Purchase Agreement has assigned
its rights and obligations thereunder to the Company pursuant to the Contract of
Assignment. On July 29, 2004, the Company acquired Atlantic and financed the
acquisition (including the reasonable fees and expenses, working capital and
reserves associated with the acquisition) with: (i) an equity contribution from
the Seller to the Company in exchange for additional shares of Common Stock of
the Company; (ii) an equity contribution from Macquarie International
Investments Pty Ltd to the Company in exchange for additional shares of Series A
preferred stock, par value $0.01 per share (the "Preferred Stock"), of the
Company; and (iii) proceeds from borrowings;
WHEREAS, the Company has entered into a membership interest purchase
agreement (the "General Aviation Agreement") dated August 18, 2004 with Merced
Partners Limited Partnership, a Delaware limited partnership, Xxxxxxx Xxxxxxx,
an individual, and Xxxxx Xxxxxx, an individual, pursuant to which the Company
intends to purchase 100% of the equity (the "Membership Interests") of General
Aviation Holdings, LLC ("General Aviation"), a Delaware limited liability
company whose sole assets as of the General Aviation Closing Date shall be 100%
of the equity of each of (i) Palm Springs FBO Two, LLC, a Delaware limited
liability company doing business as Million Air Palm Sprints and (ii) Newport
FBO Two, LLC, a Delaware limited liability company doing business as Newport Jet
Center (collectively, the "General Aviation FBOs"). The Company will finance the
acquisition of General Aviation (including the reasonable fees and expenses
associated with the acquisition) with: (i) an equity contribution from the
Seller to the Company in exchange for additional shares of Common Stock of the
Company; (ii) an equity contribution from Macquarie International Investments
Pty Ltd to the Company in exchange for additional shares of Preferred Stock of
the Company; and (iii) proceeds from borrowings;
WHEREAS, the Company, through its subsidiaries, is engaged in the
business of fixed based operations at various locations in the United States,
including, after the General Aviation Closing Date, the General Aviation FBOs
(the "Business");
WHEREAS, the Seller wishes to sell to the Purchaser, and the
Purchaser wishes to purchase from the Seller, the Shares, upon the terms and
subject to the conditions set forth herein; and
WHEREAS, the terms of the Preferred Stock require that, upon the
Closing (as defined below), each share of Preferred Stock shall automatically be
redeemed for its issue price plus accumulated and unpaid dividends at the rate
of 1.5% per annum.
NOW, THEREFORE, in consideration of the promises and the mutual
agreements and covenants hereinafter set forth, and intending to be legally
bound, the Seller and the Purchaser hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Certain Defined Terms. For purposes of this Agreement:
"Action" means any claim, action, suit, arbitration, inquiry,
proceeding or investigation by or before any Governmental Authority.
"Affiliate" means, with respect to any specified Person, any other
Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person.
"Atlantic Adjustment" means Atlantic Purchase Price multiplied by
the product of (a) 0.15 and (b) the fraction calculated by dividing (1) the
number of days from but excluding the Atlantic Closing Date to and including the
Closing Date (or, with respect to fees and expenses relating to General
Aviation, such other period of time as reasonably agreed upon by the Purchaser
and the Seller) by (2) 365.
"Atlantic Closing Date" means July 29, 2004.
"Atlantic Purchase Price" means the amount of funds contributed to
the Company by the Seller in the form of an equity contribution to finance a
portion of (1) the cash purchase price paid for the acquisition of Atlantic
under the Atlantic Stock Purchase Agreement; (2) the fees and expenses
(including investment banking fees to Macquarie Bank Limited and/or its
Affiliates charged at market rates), working capital and reserves incurred in
connection with the acquisition of Atlantic and the related transactions
contemplated hereby and (3) if on the Closing Date the acquisition of General
Aviation has not been consummated, the General Aviation Agreement has not been
terminated and no event has occurred which could give rise to a termination
thereunder, the fees and expenses incurred by the Company in connection with the
acquisition of General Aviation and the related transactions contemplated
hereby; provided that in either case such fees and expenses were reasonably
incurred.
"Atlantic Stock Purchase Agreement" means the agreement dated April
28, 2004 between Macquarie Investment Holdings, Inc., Executive Air Support,
Inc, and the shareholders of Executive Air Support, Inc. named therein, as
amended by the Amendment to the Atlantic Stock Purchase Agreement dated May 18,
2004, by the Contract of Assignment, by the Closing
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Letter Agreement dated July 29, 2004 and by the Updated Disclosure Schedules
delivered on July 29, 2004.
"Atlantic Subsidiaries" means any and all corporations,
partnerships, limited liability companies, joint ventures, associations and
other entities controlled by Atlantic directly or indirectly through one or more
intermediaries.
"AvPorts" means Macquarie Airports North America Inc.
"Business Day" means any day that is not a Saturday, a Sunday or
other day on which banks are required or authorized by Law to be closed in The
City of New York.
"CERCLA" means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended through the Closing.
"Claims" means any and all administrative, regulatory or judicial
actions, suits, petitions, appeals, demands, demand letters, claims, liens,
notices of noncompliance or violation, investigations, proceedings, consent
orders or consent agreements.
"Code" means the Internal Revenue Code of 1986, as amended. Any
reference herein to a specific section of the Code shall be deemed to include a
reference to any corresponding provision of future law.
"Contract of Assignment" means the Contract of Assignment, dated
June 7, 2004, between the Seller and the Company whereby the Seller assigned all
its rights and obligations under the Atlantic Stock Purchase Agreement to
Company.
"control" (including the terms "controlled by" and "under common
control with"), with respect to the relationship between or among two or more
Persons, means the possession, directly or indirectly or as trustee, personal
representative or executor, of the power to direct or cause the direction of the
affairs or management of a Person, whether through the ownership of voting
securities, as trustee, personal representative or executor, by contract, credit
arrangement or otherwise.
"Debt" means (i) the aggregate principal amount of debt (or
refinancing thereof) outstanding on the Closing Date and incurred by the Company
to finance the acquisition of Atlantic under the Atlantic Stock Purchase
Agreement plus (ii) the aggregate principal amount of debt (or refinancing
thereof), if any, incurred by the Company to finance the acquisition of General
Aviation under the General Aviation Agreement; plus in each case all accrued and
unpaid interest, if any, to the Closing Date; in each case incurred in
accordance with Section 8.02(i).
"Disclosure Schedule" means the Disclosure Schedule attached hereto,
dated as of the date hereof, delivered by the Seller to the Purchaser in
connection with this Agreement.
"Encumbrance" means any security interest, pledge, hypothecation,
mortgage, lien (including environmental and Tax liens), violation, charge,
lease, license, encumbrance, servient easement, adverse claim, reversion,
reverter, preferential arrangement, restrictive
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covenant, condition or restriction of any kind, including any restriction on the
use, voting, transfer, receipt of income or other exercise of any attributes of
ownership.
"Engagement Letter" means the letter agreement, dated June 14, 2004,
between the Company and Macquarie Securities (USA) Inc.
"Environmental Claims" means any Claims relating in any way to any
Environmental Law or any Environmental Permit, including (a) any and all Claims
by Governmental Authorities for enforcement, cleanup, removal, response,
remedial or other actions or damages pursuant to any applicable Environmental
Law and (b) any and all Claims by any Person seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
Hazardous Materials or arising from alleged injury or threat of injury to
health, safety or the Environment.
"Environmental Laws" means all Laws, now or at a relevant future
date, as applicable, and as amended, and any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent
decree or judgment, relating to the environment, health, safety, natural
resources or Hazardous Materials, including CERCLA; the Resource Conservation
and Recovery Act, 42 U.S.C. Sections 6901 et seq.; the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 6901 et seq.; the Clean Water Act, 33
U.S.C. Sections 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C.
Sections 2601 et seq.; the Clean Air Act, 42 U.S.C. Sections 7401 et seq.;
the Safe Drinking Water Act, 42 U.S.C. Sections 300f et seq.; the Atomic Energy
Act, 42 U.S.C. Sections 2011 et seq.; the Federal Insecticide, Fungicide and
Rodenticide Act, 7 U.S.C. Sections 136 et seq.; and the Federal Food, Drug and
Cosmetic Act, 21 U.S.C. Sections 301 et seq.
"Excluded Taxes" means Taxes imposed on or payable by (a) Atlantic
or any Atlantic Subsidiary that, under the Atlantic Stock Purchase Agreement,
are allocable to taxable periods or portions thereof ending on or before the
Atlantic Closing Date, (b) General Aviation or either General Aviation FBO that,
under the General Aviation Agreement, are allocable to taxable periods or
portions thereof ending on or before the General Aviation Closing Date or (c)
payable by the Company or any of the Subsidiaries arising out of the conduct of
the Business or pursuant to the transactions contemplated by the Atlantic Stock
Purchase Agreement, the General Aviation Agreement or this Agreement, except to
the extent attributable to Seller's breach of any warranty or representation
under Section 3.08 or Seller's breach of any covenant herein relating to Taxes.
"FBO" means fixed base operation.
"General Aviation Adjustment" means General Aviation Purchase Price
multiplied by the product of (a) 0.15 and (b) the fraction calculated by
dividing (1) the number of days from but excluding the General Aviation Closing
Date to and including the Closing Date by (2) 365.
"General Aviation Closing Date" means the date of the closing of the
General Aviation Agreement.
"General Aviation Purchase Price" means (x) the amount of funds
contributed to the Company by the Seller in the form of an equity contribution
to finance a portion of (1) the
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cash purchase price paid for the acquisition of General Aviation under the
General Aviation Agreement; and (2) if on the Closing Date the acquisition of
General Aviation has been consummated, the fees and expenses (including
investment banking fees to Macquarie Bank Limited and/or its Affiliates charged
at market rates), working capital and reserves incurred by the Company in
connection with such acquisition and the related transactions contemplated
through the General Aviation Closing Date; provided that such fees and expenses
were reasonably incurred; plus (y) if on the Closing Date the acquisition of
General Aviation has been consummated, the fees and expenses reasonably incurred
by the Company in connection with such acquisition between the General Aviation
Closing Date and the Closing Date but not otherwise included in the General
Aviation Purchase Price, up to an aggregate maximum amount of $100,000.
"Governmental Authority" means any federal, national, supranational,
state, provincial, local, or similar government, governmental, regulatory or
administrative authority, agency or commission or any court, tribunal, or
judicial or arbitral body.
"Governmental Authorizations" shall mean any consent, license,
registration or permit issued, granted, given or otherwise made available by or
under the authority of any Governmental Authority or pursuant to any legal
requirement, in each case in connection with the operation of the Business.
"Governmental Order" means any order, writ, judgment, injunction,
decree, stipulation, determination or award entered by or with any Governmental
Authority.
"Hazardous Materials" means (a) petroleum and petroleum products,
radioactive materials, asbestos-containing materials, urea formaldehyde foam
insulation, transformers or other equipment that contain polychlorinated
biphenyls and radon gas, (b) any other chemicals, materials or substances
defined as or included in the definition of "hazardous substances", "hazardous
wastes", "hazardous materials", "extremely hazardous wastes", "restricted
hazardous wastes", "toxic substances", "toxic pollutants", "contaminants" or
"pollutants", or words of similar import, under any applicable Environmental
Law, and (c) any other chemical, material or substance which is regulated by any
Environmental Law.
"HSR Act" means the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of
1976, as amended, and the rules and regulations promulgated thereunder.
"Knowledge" means the actual knowledge of Xxxxxxx Xxxxxxx, Xxxxxx
Bleach, Xxxxx Xxxxxx, Xxxxxxx Xxxxxxx, Xxxxxxx Xxxxxxx and Xxxxxx Xxxxx Xxxxxxx
(together the "Knowledge Parties") or the knowledge such Knowledge Parties
should have had if commercially reasonable enquiries of Xxx Xxxxxx, Xxx Xxxxxxx
and Xxx Xxxxx, with respect to Atlantic, or Xxxx Xxxxxxx, Xxxxxx Xxxxxx and
Xxxxxxxxx Xxxxxx, with respect to General Aviation, had been made.
"Law" means any federal, national, supranational, state, provincial,
local or similar statute, law, ordinance, regulation, rule, code, order,
requirement or rule of law (including common law).
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"Liabilities" means any and all debts, liabilities and obligations,
whether accrued or fixed, absolute or contingent, matured or unmatured or
determined or determinable, including those arising under any Law, Action or
Governmental Order and those arising under any contract, agreement, arrangement,
commitment or undertaking.
"Material Adverse Effect" means any circumstance, change in or
effect on the Business, the Company or any Subsidiary that, individually or in
the aggregate with all other circumstances, changes in or effects on the
Business, the Company or any Subsidiary: (a) is or is reasonably likely to be
materially adverse to the business, operations, assets or liabilities (including
contingent liabilities), employee relationships, customer or supplier
relationships, results of operations or the condition (financial or otherwise)
of the Business, the Company or any Subsidiary or (b) is reasonably likely to
materially adversely effect (i) the ability of the Purchaser to operate or
conduct the Business in the manner in which it is currently or contemplated to
be operated or conducted by the Company or any Subsidiary or (ii) the ability of
either the Seller or the Purchaser to perform its obligations under this
Agreement; but in any event shall not include any circumstances, changes or
effects that are generally applicable in the United States economy, the industry
in which the referenced Person operates, or the United States securities
markets.
"MC" means Management Contracts.
"MIAT" means Macquarie Infrastructure Assets Trust, the indirect
parent of Macquarie Infrastructure Assets Inc.
"Permitted Encumbrances" means such of the following as to which no
enforcement, collection, execution, levy or foreclosure proceeding shall have
been commenced and as to which neither the Company nor any Subsidiary is
otherwise subject to civil or criminal liability due to its existence: (a) liens
for Taxes not yet due and payable; (b) Encumbrances imposed by Law, such as
materialmen's, mechanics', carriers', workmen's and repairmen's liens and other
similar liens arising in the ordinary course of business securing obligations
that (i) are not overdue for a period of more than 30 days and (ii) are not in
excess of $5,000 in the case of a single property or $50,000 in the aggregate at
any time; (c) pledges or deposits to secure obligations under workers'
compensation laws or similar legislation or to secure public or statutory
obligations; and (d) minor survey exceptions, reciprocal easement agreements and
other customary encumbrances on title to real property that (i) were not
incurred in connection with any indebtedness, (ii) do not render title to the
property encumbered thereby unmarketable and (iii) do not, individually or in
the aggregate, materially adversely affect the value of or the use of such
property for its current and anticipated purposes; and (iv) liens securing the
Debt.
"Person" means any individual, partnership, firm, corporation,
limited liability company, association, trust, unincorporated organization or
other entity, as well as any syndicate or group that would be deemed to be a
person under Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended.
"Post-Closing Straddle Period" means the portion of a Straddle
Period beginning the day after the Closing Date.
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"Pre-Closing Periods" means any taxable period ending on or before
the Closing Date.
"Pre-Closing Straddle Period" means the portion of a Straddle Period
ending on the Closing Date.
"Preferred Adjustment" means (i) the aggregate issue price of the
shares of Preferred Stock outstanding immediately following the Atlantic Closing
Date multiplied by the product of (a) 0.135 and (b) the fraction calculated by
dividing (1) the number of days from but excluding the Atlantic Closing Date to
and including the Closing Date by (2) 365 plus (ii) if the General Aviation
Closing Date occurs prior to the Closing Date, the aggregate issue price of the
additional shares of Preferred Stock outstanding immediately following the
General Aviation Closing Date in excess of those shares included in clause (i)
multiplied by the product of (a) 0.135 and (b) the fraction calculated by
dividing (1) the number of days from but excluding the General Aviation Closing
Date to and including the Closing Date by (2) 365.
"Purchase Price" means (a) an amount in cash equal to the sum of (i)
the Atlantic Purchase Price, (ii) the Atlantic Adjustment, (iii) if the General
Aviation Closing Date occurs prior to the Closing Date, the General Aviation
Purchase Price, (iv) if the General Aviation Closing Date occurs prior to the
Closing Date, the General Aviation Adjustment and (v) the Preferred Adjustment;
it being understood that the Debt shall remain outstanding immediately following
the Closing.
"Redemption Amount" for each share of Preferred Stock means the
product of (a) the issue price of each outstanding share of Preferred Stock on
the Closing Date and (b) the sum of (i) 1.0 and (ii) the product of (A) 0.015
and (B) the fraction calculated by dividing (1) the number of days from but
excluding the issue date of such share of Preferred Stock to and including the
Closing Date by (2) 365.
"Release" means disposing, discharging, injecting, spilling,
leaking, leaching, dumping, emitting, escaping, seeping, placing and the like
into or upon any land or water or air or otherwise entering into the
Environment.
"Shares" means all of the outstanding shares of Common Stock of the
Company owned by the Seller on the Closing Date.
"Straddle Period" means any taxable period beginning before the
Closing Date and ending after the Closing Date.
"Subsidiaries" means any and all corporations, partnerships, limited
liability companies, joint ventures, associations and other entities controlled
by the Company directly or indirectly through one or more intermediaries.
General Aviation and the General Aviation FBOs shall be considered the
Subsidiaries of the Company only after the General Aviation Closing Date.
"Tax" or "Taxes" means (i) any and all taxes, fees, levies, duties,
tariffs, imposts, and other similar charges of any kind (together with any and
all interest, penalties, additions to tax and additional amounts imposed with
respect thereto) imposed by any government or taxing
7
authority, including (a) taxes or other similar charges on or with respect to
income, franchises, windfall or other profits, gross receipts, property, sales,
use, capital stock, payroll, employment, social security, workers' compensation,
unemployment compensation, or net worth; (b) taxes or other similar charges in
the nature of excise, withholding, ad valorem, stamp, transfer, value added, or
gains taxes; (c) taxes or similar charges in the nature of license, registration
and documentation fees; and (d) customs' duties, tariffs, and similar charges.
"Tax Returns" means any return, declaration, report, election, claim
for refund or information return or other statement or form relating to, filed
or required to be filed with any taxing authority, including any schedule or
attachment thereto, and including any amendment thereof.
SECTION 1.02. Definitions. The following terms have the meanings set
forth in the Sections set forth below:
Definition Location
---------- --------
"Additional Shares"............................... 2.01(b)
"Agreement"....................................... Preamble
"Atlantic"........................................ Recitals
"Basket Amount" .................................. 7.04
"Business"........................................ Recitals
"Closing"......................................... 2.03
"Closing Date" ................................... 2.03
"Common Stock".................................... Recitals
"Company"......................................... Recitals
"Contest" ........................................ 6.04(b)
"General Aviation" ............................... Recitals
"General Aviation Agreement" ..................... Recitals
"General Aviation Basket Amount" ................. 7.05
"General Aviation FBOs" .......................... Recitals
"Loss"............................................ 7.02
"Membership Interests" ........................... Recitals
"Preferred Stock"................................. Recitals
"Purchaser"....................................... Preamble
"Purchaser Indemnified Party"..................... 7.02
"Relevant Period" ................................ 3.08(a)
"Seller".......................................... Preamble
"Seller Indemnified Party"........................ 7.03
"Tax Indemnity Payments" ......................... 6.03(b)
"Transfer Taxes".................................. 6.02
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ARTICLE II
PURCHASE AND SALE
SECTION 2.01. Purchase and Sale of the Shares and Redemption. Upon
the terms and subject to the conditions of this Agreement, at the Closing:
(a) the Seller shall sell, assign, transfer, convey and deliver,
free and clear of all Encumbrances, to the Purchaser, the Shares, and the
Purchaser shall purchase the Shares;
(b) the Purchaser shall contribute to the Company the aggregate
Redemption Amount for all shares of Preferred Stock outstanding on the Closing
Date in exchange for such number of additional shares of Common Stock (the
"Additional Shares") determined by dividing the aggregate Redemption Amount by
the quotient of (i) the Purchase Price by (ii) the total number of Shares; and
(c) the Company shall redeem all of the outstanding shares of
Preferred Stock for the aggregate Redemption Amount.
SECTION 2.02. Purchase Price(a) . In consideration of the sale and
transfer of the Shares, the parties hereto agree that, at the Closing, the
Purchaser shall pay and the Seller shall receive the Purchase Price.
SECTION 2.03. Closing. Subject to the terms and conditions of this
Agreement, the sale and purchase of the Shares contemplated by this Agreement
shall take place at a closing (the "Closing") to be held at the offices of
Shearman & Sterling LLP, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx at 10:00 A.M.
New York time on or prior to the fifteenth Business Day following the
satisfaction or waiver of all conditions to the obligations of the parties set
forth in Sections 8.01 and 8.02 or at such other place or at such other time or
on such other date as the Seller and the Purchaser may mutually agree upon in
writing (the "Closing Date").
SECTION 2.04. Closing Deliveries by the Seller. At the Closing, the
Seller shall deliver or cause to be delivered to the Purchaser:
(a) stock certificates evidencing the Shares duly endorsed in blank,
or accompanied by stock powers duly executed in blank, in form
satisfactory to the Purchaser and with all required stock transfer tax
stamps affixed;
(b) stock certificates evidencing the Additional Shares;
(c) a receipt for the Purchase Price;
(d) a true and complete copy, certified by the Secretary or an
Assistant Secretary of the Seller, of the resolutions duly and validly
adopted by the Board of Directors of the Seller evidencing its
authorization of the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby;
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(e) good standing certificates for the Company and for each
Subsidiary from the Secretary of State of the jurisdiction in which each
such entity is incorporated or organized and from the Secretary of State
in each other jurisdiction in which the properties owned or leased by any
of the Company or any Subsidiary, or the operation of its business in such
jurisdiction, requires the Company or any Subsidiary to qualify to do
business as a foreign corporation, in each case dated as of a date not
earlier than five Business Days prior to the Closing;
(f) the certificate, dated the Closing Date, contemplated by Section
8.02(a);
(g) a receipt from Macquarie International Investments Pty Ltd to
the Company acknowledging receipt of the aggregate Redemption Amount in
full satisfaction of the redemption obligation under the Company's
Certificate of Incorporation; and
(h) such other documents and instruments reasonably requested by the
Purchaser to consummate the transactions contemplated hereby.
SECTION 2.05. Closing Deliveries by the Purchaser. (a) At the
Closing, the Purchaser shall deliver to the Seller:
(i) the Purchase Price by wire transfer in immediately available
funds to a bank account in the United States to be designated by the
Seller in a written notice to the Purchaser at least five Business Days
before the Closing;
(ii) the certificate, dated the Closing Date, contemplated by
Section 8.01(a); and
(iii) such other documents and instruments reasonably requested by
the Seller to consummate the transactions contemplated hereby.
(b) At the Closing, the Purchaser shall contribute to the Company
the aggregate Redemption Amount by wire transfer in immediately available funds
to a bank account in the United States to be designated by the Company in a
written notice to the Purchaser at least five Business Days before the Closing.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
OF THE SELLER
As an inducement to the Purchaser to enter into this Agreement, the
Seller hereby represents and warrants to the Purchaser, as follows:
SECTION 3.01. Organization, Authority and Qualification of the
Seller. The Seller is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation and has all
necessary power and authority to enter into this Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby.
The execution and delivery of this Agreement by the Seller, the
10
performance by the Seller of its obligations hereunder and the consummation by
the Seller of the transactions contemplated hereby have been duly authorized by
all requisite action on the part of the Seller and its Board of Director. This
Agreement has been duly executed and delivered by the Seller, and (assuming due
authorization, execution and delivery by the Purchaser) this Agreement
constitutes legal, valid and binding obligations of the Seller, enforceable
against the Seller in accordance with its terms.
SECTION 3.02. Organization, Authority and Qualification of the
Company. The Company is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation and has
all necessary corporate power and authority to own, operate or lease the
properties and assets now owned, operated or leased by it and to carry on the
Business as it has been and is contemplated to be conducted. The Company is duly
licensed or qualified to do business and is in good standing in each
jurisdiction in which the properties owned or leased by it or the operation of
its business makes such licensing or qualification necessary or desirable. All
corporate actions taken by the Company have been duly authorized, and the
Company has not taken any action that in any respect conflicts with, constitutes
a default under or results in a violation of any provision of its certificate of
incorporation or by-laws. True and correct copies of the certificate of
incorporation and by-laws of the Company, each as in effect on the date hereof,
have been delivered by the Seller to the Purchaser.
SECTION 3.03. Subsidiaries. As of the date hereof, the Company's
Subsidiaries consist of the Atlantic Subsidiaries. Except as set forth on
Section 3.03 of the Disclosure Schedule, to the Seller's Knowledge, Schedule 3.6
of the disclosure schedule of the Atlantic Stock Purchase Agreement sets forth a
true and complete list of all Subsidiaries of the Company, listing for each
Subsidiary its name, type of entity, the jurisdiction of its incorporation or
organization, its authorized capital stock, partnership capital or equivalent,
the number and type of its issued and outstanding shares of capital stock,
partnership shares or similar ownership shares and the current ownership of such
shares, partnership shares or similar ownership shares. To the Seller's
Knowledge, General Aviation and the General Aviation FBOs are all the
Subsidiaries the Company will acquire on the General Aviation Closing Date, and
the General Aviation Agreement accurately sets forth for each such Subsidiary
its name, type of entity, the jurisdiction of its incorporation or organization,
its authorized capital stock, partnership capital or equivalent, the number and
type of its issued and outstanding shares of capital stock, partnership shares
or similar ownership shares and the current ownership of such shares,
partnership shares or similar ownership shares.
SECTION 3.04. Capitalization. The authorized capital stock of the
Company consists of 1,000,000 shares of Common Stock and 10,000 shares of
Preferred Stock. As of the date hereof, 454,377 shares of Common Stock and 4,590
shares of Preferred Stock are issued, all of which are validly issued, fully
paid and nonassessable. None of the issued and outstanding Shares was issued or
will be issued in violation of any preemptive rights. There are no outstanding
contractual obligations of the Company to repurchase, redeem or otherwise
acquire any shares or to provide funds to, or make any investment (in the form
of a loan, capital contribution or otherwise) in, any other Person other than as
contemplated herein. The Shares will constitute all of the issued and
outstanding capital stock of the Company on the Closing Date, other than the
shares of Preferred Stock then owned by Macquarie International
11
Investments Pty Ltd and the Additional Shares; and immediately prior to the
Closing, the Shares will be owned of record and beneficially by the Seller free
and clear of all Encumbrances. Upon consummation of the transactions
contemplated by this Agreement and registration of the Shares in the name of the
Purchaser in the stock records of the Company, the Purchaser, assuming it shall
have purchased the Shares for value in good faith and without notice of any
adverse claim, will own all the issued and outstanding capital stock of the
Company free and clear of all Encumbrances. Upon consummation of the
transactions contemplated by this Agreement, the Shares will be validly issued,
fully paid and nonassessable.
SECTION 3.05. No Conflict. Except as may result from any facts or
circumstances relating solely to the Purchaser, the execution, delivery and
performance of this Agreement by the Seller does not and will not (a) violate,
conflict with or result in the breach of any provision of the certificate of
incorporation or bylaws of the Seller, the Company and its Subsidiaries or (b)
conflict with or violate any Law or Governmental Order applicable to the Seller,
the Company or its Subsidiaries or any of their respective assets, properties or
businesses which is material to the Company, the Business or to the performance
by the Seller of its obligations under this Agreement or (c) conflict in any
material respect with, or result in any breach of, or constitute a default under
any material agreement to which the Seller is a party or by which it or any of
its assets or properties may be bound or (d) result in or require the creation
of any Encumbrance, except for Permitted Encumbrance, upon the Business and the
underlying assets.
SECTION 3.06. Consents and Approvals. All consents which are
necessary for the execution, delivery and performance by the Seller of this
Agreement are set forth in Section 3.06 of the Disclosure Schedule. For the
avoidance of doubt, the only Consents required as a condition of the obligations
of the parties to consummate the Closing are those set forth in Section 8.02
hereof.
SECTION 3.07. Litigation. Except as set forth in Schedule 3.9 of the
disclosure schedule of the Atlantic Stock Purchase Agreement or Schedule 3.11 of
the disclosure schedule of the General Aviation Agreement, to the Knowledge of
the Seller, there are no proceedings by any Person or Governmental Authority
pending, or threatened relating to or affecting the Company, its Subsidiaries or
the Business that could have a Material Adverse Effect on the Business or on the
ability of the Seller to perform its obligation under this Agreement.
SECTION 3.08. Taxes. Except as set forth in Section 3.08 of the
Disclosure Schedule or as disclosed in the disclosure schedules of the Atlantic
Stock Purchase Agreement or the General Aviation Agreement::
(a) With respect to the Company from the date of the Company's
incorporation to the Closing Date, with respect to the Atlantic
Subsidiaries from the Atlantic Closing Date to the Closing Date and with
respect to General Aviation and the General Aviation FBOs from the General
Aviation Closing Date to the Closing Date (in each case, the "Relevant
Period"), the Seller, the Company and its Subsidiaries have duly filed
when due, including any extensions, all Tax Returns first becoming due
(taking into account extensions) in the Relevant Period in connection with
the Company, its Subsidiaries and
12
the Business; and all such Tax Returns have been prepared with ordinary
business care, and to the Seller's Knowledge are correct and complete in
all material respects.
(b) The Company and its Subsidiaries have timely paid and discharged
any and all Tax obligations with respect to the Company and its
Subsidiaries and the Business, due and payable during the Relevant Period,
whether or not shown on any Tax Return (other than any Tax obligations of
the Subsidiaries that were delinquent as of the Atlantic Closing Date).
The Company and its Subsidiaries have timely discharged any and all
obligations to withhold and remit any Taxes required to have been withheld
by or with respect to the Company and its Subsidiaries and the Business
during the Relevant Period.
(c) To the Seller's Knowledge, neither the Company nor any of its
Subsidiaries have received during the Relevant Period notice of any Tax
deficiency outstanding, proposed or assessed against or allocable to the
Company or any of its Subsidiaries, nor during the Relevant Period has the
Company or any of its Subsidiaries executed any waiver of any statute of
limitations on the assessment or collection of any Tax, or executed or
filed with the Internal Revenue Service or any other taxing authority any
agreement now in effect extending the period for assessment or collection
of any Taxes against the Company or any of its Subsidiaries.
(d) To the Sellers' Knowledge, there are no actions, suits,
proceedings, audits, investigations or claims pending, in progress, or
threatened against the Company or any of its Subsidiaries with respect to
Taxes. To the Sellers' Knowledge, there are no Encumbrances for Taxes
upon, pending against, or threatened against the assets of the Business.
(e) There are no Tax sharing or Tax allocation agreements with
respect to which the Company has been or currently is a party except for
any agreement solely among the Company and its Subsidiaries.
(f) The Company is not liable for Taxes of another Person under
Treasury Regulation Section 1.1502-6 (or any similar provision of state,
local or foreign Tax Law) as a transferee or successor, by contract or
otherwise liable, except for Taxes imposed with respect to income or
operations of its Subsidiaries during the Relevant Period.
(g) The income Tax Returns of the Company have disclosed any Tax
positions that, if not disclosed, could give rise to penalties under
Section 6662 of the Code (or a similar provision of state or local Tax
Law).
(h) To the Seller's Knowledge, no claim has been made during the
Relevant Period by a taxing authority in a jurisdiction where the Company
does not file Tax Returns that the Company is or may be subject to
taxation by such jurisdiction. To the Seller's Knowledge, no power of
attorney has been granted during the Relevant Period with respect to any
matter relating to Taxes of the Company or its Subsidiaries that is
currently in effect.
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(i) The Company was not, at any time during the applicable period
set forth in Section 897(c)(1) of the Code, a United States real property
holding corporation within the meaning of Section 897(c)(2) of the Code.
SECTION 3.09. Stock Purchase Agreements. Each of the Atlantic Stock
Purchase Agreement and the General Aviation Agreement is a legal, valid and
binding obligation of the Company, in accordance with its terms, and except as
set forth in Section 3.09 of the Disclosure Schedule, or as otherwise expressly
approved in writing by Purchaser, there have been no amendments of the
provisions or waivers of conditions precedent of either the Atlantic Stock
Purchase Agreement or the General Aviation Agreement.
SECTION 3.10. Environmental Matters.
(a) To the Knowledge of the Seller, except as disclosed in Schedule
3.22 of the disclosure schedule of the Atlantic Stock Purchase Agreement or in
Schedule 3.16 of the disclosure schedule of the General Aviation Agreement,
there are no outstanding and unresolved written notices, pending or threatened
actions from any Governmental Authority or any other Person alleging that the
Business is not being or has not been conducted in material compliance with, or
has violated Environmental Laws or alleging that the Seller or the Company has
any liability for the Business under the Environmental Laws;
(b) To the Knowledge of the Seller, except as set forth in Schedule
3.22 of the disclosure schedule of the Atlantic Stock Purchase Agreement or in
the disclosure schedule of the General Aviation Agreement, there are no pending
or threatened Environmental Claims, against the Seller or the Company and its
Subsidiaries which arise from the operation of the Business, or relate to any
real property currently or formerly owned, operated or leased by the Seller as
part of the Business;
(c) To the Knowledge of the Seller, except as set forth in Schedule
3.22 of the disclosure schedule of the Atlantic Stock Purchase Agreement or in
the disclosure schedule of the General Aviation Agreement, the Seller, the
Company and its Subsidiaries have obtained all material Governmental
Authorizations required under Environmental Laws to operate the Business as
currently operated. To the Knowledge of the Seller, Schedule 3.22 of the
disclosure schedule of the Atlantic Stock Purchase Agreement and Schedules 3.3
of the disclosure schedule of the General Aviation Agreement sets forth a true
and complete list of all Governmental Authorizations required under
Environmental Laws issued to the Seller or the Company and its Subsidiaries to
operate the Business;
(d) To the Knowledge of the Seller, except as set forth in Schedule
3.22 of the disclosure schedule of the Atlantic Stock Purchase Agreement or in
Schedule 3.16 of the disclosure schedule of the General Aviation Agreement, the
Seller, the Company and its Subsidiaries are in substantial compliance with all
Environmental Laws regarding the Business;
(e) The Seller has furnished to the Purchaser copies of all
environmental assessments, reports, audits, and other documents and information
in its possession or under its control that relate to any real property owned,
operated or leased during the Relevant Period by the Seller or the Company or
its Subsidiaries regarding the Business;
14
(f) To the Knowledge of the Seller, except as set forth in Schedule
3.22 of the disclosure schedule of the Atlantic Stock Purchase Agreement or in
Schedule 3.16 of the disclosure schedule of the General Aviation Agreement,
there has been no Release during the Relevant Period at any real property owned,
operated or leased by the Seller, the Company or its Subsidiaries in connection
with the Business for which the Seller, the Company or the Purchaser could be
liable under the Environmental Laws, and the real property is not subject to any
state or federal environmental lien;
(g) Except in connection with the transfer of any Governmental
Authorizations listed in Schedule 3.22 of the disclosure schedule of the
Atlantic Stock Purchase Agreement or in the disclosure schedule of the General
Aviation Agreement, no authorization, notification, recording, filing, consent,
waiting period, remedial action or approval is required by the Seller, the
Company or any of its Subsidiaries under any Environmental Law in order to
consummate the transaction contemplated by this Agreement; and
(h) To the Sellers' Knowledge, neither Seller nor the Company or any
of its Subsidiaries is listed as, or has been notified during the Relevant
Period that it is, a potentially responsible party under CERCLA or any
comparable state statute as a result of the operation of the Business.
SECTION 3.11. Brokers. No broker, finder or investment banker is
entitled to any brokerage, finder's or other fee or commission in connection
with the transactions contemplated by this Agreement based upon arrangements
made by or on behalf of any Seller, the Company or any of its Subsidiaries.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
OF THE PURCHASER
As an inducement to the Seller to enter into this Agreement, the
Purchaser hereby represents and warrants to the Seller, as follows:
SECTION 4.01. Organization and Authority of the Purchaser. The
Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation and has all necessary
corporate power and authority to enter into this Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby.
The execution and delivery by the Purchaser of this Agreement, the performance
by the Purchaser of its obligations hereunder and the consummation by the
Purchaser of the transactions contemplated hereby have been duly authorized by
all requisite corporate action on the part of the Purchaser. This Agreement has
been duly executed and delivered by the Purchaser, and (assuming due
authorization, execution and delivery by the Seller) this Agreement constitutes
legal, valid and binding obligations of the Purchaser, enforceable against the
Purchaser in accordance with its terms.
SECTION 4.02. No Conflict. Except as may result from any facts or
circumstances relating solely to the Seller, the execution, delivery and
performance by the
15
Purchaser of this Agreement does not and will not (a) violate, conflict with or
result in the breach of any provision of the certificate of incorporation or
by-laws of the Purchaser, (b) conflict with or violate any Law or Governmental
Order applicable to the Purchaser which is material to the Purchaser or to the
performance by the Purchaser of its obligations under this Agreement or (c)
conflict in any material respect with or result in any breach of, or constitute
a default under any material agreement to which the Purchaser is a party or by
which it or any of its assets or properties may be bound.
SECTION 4.03. Consents and Approvals. All consents, which are
necessary for the execution, delivery and performance by the Purchaser of this
Agreement are set forth in Section 4.03 of the Disclosure Schedule.
SECTION 4.04. Brokers. No broker, finder or investment banker is
entitled to any brokerage, finder's or other fee or commission in connection
with the transactions contemplated by this Agreement based upon arrangements
made by or on behalf of the Purchaser.
ARTICLE V
ADDITIONAL AGREEMENTS
SECTION 5.01. Conduct of Business Prior to the Closing. The Seller
covenants and agrees that from the Atlantic Closing Date to the Closing Date,
except as described in Section 5.01 of the Disclosure Schedule, the Company and
its Subsidiaries have not conducted, and shall not conduct, their business other
than in the ordinary course and consistent with the Company's or the
Subsidiary's, as the case may be, practice prior to the Atlantic Closing Date,
except with the prior consent of the Purchaser. Without limiting the generality
of the foregoing, except as described in Section 5.01 of the Disclosure
Schedule, the Seller shall cause each Subsidiary to (i) continue their
advertising and promotional activities, and pricing and purchasing policies, in
accordance with past practice; (ii) not shorten or lengthen the customary
payment cycles for any of their payables or receivables; (iii) use their best
efforts to (A) preserve intact their business organizations and the business
organization of the Business, (B) keep available to the Purchaser the services
of the employees of the Company and each Subsidiary, (C) continue in full force
and effect without material modification all existing policies or binders of
insurance currently maintained in respect of the Company, each Subsidiary and
the Business and (D) preserve their current relationships with their customers,
suppliers and other persons with which they have had significant business
relationships; (iv) not engage in any practice, take any action, fail to take
any action or enter into any transaction which could cause any representation or
warranty of the Seller under Article III hereof to be untrue or result in a
breach of any covenant made by the Seller in this Agreement; (v) not amend or
waive any provision of the Atlantic Stock Purchase Agreement or the General
Aviation Agreement; (vi) not commit to any capital expenditures contracts with
respect to Atlantic of a value in excess of $500,000, except to the extent set
forth in its 2004 Budget dated December 10, 2003; and (vi) not commit to any
capital expenditures contracts with respect to General Aviation of a value in
excess of $100,000, except to the extent set forth in its 2004 Budget, as
delivered to the Seller on April 1, 2004, in each case without the prior consent
of the Purchaser (which consent shall not be unreasonably withheld, delayed or
conditioned). Notwithstanding the foregoing, the Company
16
and the Subsidiaries are hereby expressly permitted to enter into and consummate
the transactions related to the Debt, subject to Section 8.02(i).
SECTION 5.02. Access to Information. The Seller shall cause its
officers, directors, employees, agents, representatives, accountants and counsel
and shall cause the Company and the Subsidiaries and each of the Company's and
the Subsidiaries' officers, directors, employees, agents, representatives,
accountants and counsel to: (a) afford the officers, employees, agents,
accountants, counsel, financing sources and representatives of the Purchaser
reasonable access, during normal business hours, to the offices, properties,
plants, other facilities, books and records of the Company and each Subsidiary
including access to enter upon such properties, plants and facilities to
investigate and collect air, surface water, groundwater and soil samples or to
conduct any other type of environmental assessment and to those officers,
directors, employees, agents, accountants and counsel of the Seller, the Company
and of each Subsidiary who have any knowledge relating to the Company, any
Subsidiary or the Business and (b) furnish to the officers, employees, agents,
accountants, counsel, financing sources and representatives of the Purchaser
such additional financial and operating data and other information regarding the
assets, properties, liabilities and goodwill of the Company, the Subsidiaries
and the Business (or legible copies thereof) as the Purchaser may from time to
time reasonably request.
SECTION 5.03. Confidentiality. The Seller agrees to, and shall cause
its agents, representatives, Affiliates, employees, officers and directors to:
(i) treat and hold as confidential (and not disclose or provide access to any
Person to) all information relating to trade secrets, processes, patent
applications, product development, price, customer and supplier lists, pricing
and marketing plans, policies and strategies, details of client and consultant
contracts, operations methods, product development techniques, business
acquisition plans, new personnel acquisition plans and all other confidential or
proprietary information with respect to the Business, the Company and each
Subsidiary, (ii) in the event that the Seller or any such agent, representative,
Affiliate, employee, officer or director becomes legally compelled to disclose
any such information, provide the Purchaser with prompt written notice of such
requirement so that the Purchaser, the Company or any Subsidiary may seek a
protective order or other remedy or waive compliance with this Section 5.03,
(iii) in the event that such protective order or other remedy is not obtained,
or the Purchaser waives compliance with this Section 5.03, furnish only that
portion of such confidential information which is legally required to be
provided and exercise its best efforts to obtain assurances that confidential
treatment will be accorded such information, and (iv) promptly furnish (prior
to, at, or as soon as practicable following, the Closing) to the Company or the
Purchaser any and all copies (in whatever form or medium) of all such
confidential information then in the possession of the Seller or any of its
agents, representatives, Affiliates, employees, officers and directors and
destroy any and all additional copies then in the possession of the Seller or
any of its agents, representatives, Affiliates, employees, officers and
directors of such information and of any analyses, compilations, studies or
other documents prepared, in whole or in part, on the basis thereof; provided,
however, that this sentence shall not apply to any information that, at the time
of disclosure, is available publicly and was not disclosed in breach of this
Agreement by the Seller, its agents, representatives, Affiliates, employees,
officers or directors.
17
SECTION 5.04. Regulatory and Other Authorizations; Notices and
Consents. (a) The Seller shall use its best efforts to obtain (or cause the
Company and the Subsidiaries to obtain) all authorizations, consents, orders and
approvals of all Governmental Authorities and officials that may be or become
necessary for its execution and delivery of, and the performance of its
obligations pursuant to this Agreement and will cooperate fully with the
Purchaser in promptly seeking to obtain all such authorizations, consents,
orders and approvals. The Purchaser agrees that all the fees and expenses
associated with filings required pursuant to the HSR Act in connection with the
purchase of the Shares under this Agreement shall be paid by the Purchaser.
(b) The Seller shall or shall cause the Company and the Subsidiaries
to obtain estoppel letters that acknowledge the transaction to be consummated
pursuant to this Agreement in a form reasonably satisfactory to the Purchaser,
to the extent listed in the Section 6.1(m) of the Atlantic Stock Purchase
Agreement and following the procedure mentioned therein or to the extent
received in connection with the transactions contemplated by the Atlantic Stock
Purchase Agreement and the General Aviation Agreement.
(c) The Purchaser shall cooperate and use all reasonable efforts to
assist the Seller in giving such notices and obtaining such consents and
estoppel certificates; provided, however, that the Purchaser shall have no
obligation to give any guarantee or other consideration of any nature in
connection with any such notice, consent or estoppel certificate or to consent
to any change in the terms of any agreement or arrangement which the Purchaser
in its sole discretion may deem adverse to the Shares or the Purchaser, the
Company or any Subsidiary.
(d) The Seller and the Purchaser agree that, in the event that any
consent, approval or authorization necessary or desirable to preserve for the
Company or any Subsidiary any right or benefit under any lease, license,
contract, commitment or other agreement or arrangement to which the Company or
any Subsidiary is a party is not obtained prior to the Closing, the Seller will,
subsequent to the Closing, cooperate with the Purchaser, the Company or any such
Subsidiary in attempting to obtain such consent, approval or authorization as
promptly thereafter as practicable. If such consent, approval or authorization
cannot be obtained, the Seller shall use all commercially reasonable efforts to
provide the Purchaser, the Company or such Subsidiary, as the case may be, with
the rights and benefits of the affected lease, license, contract, commitment or
other agreement or arrangement for the term of such lease, license, contract or
other agreement or arrangement, and, if the Seller provides such rights and
benefits, the Company or such Subsidiary, as the case may be, shall assume the
obligations and burdens thereunder.
SECTION 5.05. Notice of Developments. Prior to the Closing, the
Seller shall promptly notify the Purchaser in writing of all events,
circumstances, facts and occurrences arising subsequent to the date of this
Agreement (a) which could reasonably be expected to result in any breach of a
representation or warranty of the Seller under Article III hereof, or covenant
of the Seller in this Agreement or (b) which could reasonably be expected to
have (i) the effect of making any such representation or warranty of the Seller
in this Agreement untrue or incorrect in any respect, or (ii) a Material Adverse
Effect.
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SECTION 5.06. No Solicitation or Negotiation. The Seller agrees that
between the date of this Agreement and the earlier of (a) the Closing and (b)
the termination of this Agreement, none of the Seller, the Company, the
Subsidiaries or any of their respective Affiliates, officers, directors,
representatives or agents will (i) solicit, initiate, consider, encourage or
accept any other proposals or offers from any Person (A) relating to any
acquisition or purchase of all or any portion of the capital stock of the
Company or any Subsidiary or the Business or (B) to enter into any merger,
consolidation, business combination, recapitalization, reorganization or other
extraordinary business transaction involving or otherwise relating to the
Company or any Subsidiary or (ii) participate in any discussions, conversations,
negotiations and other communications regarding, or furnish to any other Person
any information with respect to, or otherwise cooperate in any way, assist or
participate in, facilitate or encourage any effort or attempt by any other
Person to seek to do any of the foregoing. The Seller immediately shall cease
and cause to be terminated all existing discussions, conversations, negotiations
and other communications with any Persons conducted heretofore with respect to
any of the foregoing. The Seller shall notify the Purchaser promptly if any such
proposal or offer, or any inquiry or other contact with any Person with respect
thereto, is made and shall, in any such notice to the Purchaser, indicate in
reasonable detail the identity of the Person making such proposal, offer,
inquiry or contact and the terms and conditions of such proposal, offer, inquiry
or other contact. The Seller agrees not to, and to cause the Company and each
Subsidiary not to, without the prior written consent of the Purchaser, release
any Person from, or waive any provision of, any confidentiality or standstill
agreement to which the Seller, the Company or any Subsidiary is a party.
SECTION 5.07. Release of Indemnity Obligations. The Seller covenants
and agrees, on or prior to the Closing, to execute and deliver to the Company,
for the benefit of the Company and each Subsidiary, a general release and
discharge, in form and substance satisfactory to the Purchaser, releasing and
discharging the Company and Subsidiary from any and all obligations to indemnify
the Seller or otherwise hold it harmless pursuant to any agreement or other
arrangement entered into prior to the Closing other than pursuant to (i) the
terms of any agreement in effect on the Closing Date related to the acquisition
of Atlantic and the related transactions contemplated thereby, (ii) the terms of
any agreement in effect on the Closing Date related to the acquisition of
General Aviation and the related transactions contemplated thereby, including
the Engagement Letter.
SECTION 5.08. Further Assurances. (a) The Seller covenants and
agrees to cooperate with the Purchaser and shall use its commercially reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things, including the making of any disclosures, necessary or
desirable under applicable Law as the Purchaser may reasonably request the
Seller to take or do in connection with the initial public offering of the
direct and/or indirect parent of the Purchaser.
(b) Notwithstanding anything to the contrary contained in this
Agreement, the Purchaser shall have the right to use and disclose any and all
information, including financial statements of the Company and its Subsidiaries
and the business and other related documents, in connection with the initial
public offering of MIAT or any of its Subsidiaries in accordance with the terms
of the Atlantic Stock Purchase Agreement.
19
SECTION 5.09. Further Action. Each of the parties hereto shall use
all reasonable efforts to take, or cause to be taken, all appropriate action, do
or cause to be done all things necessary, proper or advisable under applicable
Law, and to execute and deliver such documents and other papers, as may be
required to carry out the provisions of this Agreement and consummate and make
effective the transactions contemplated hereby.
SECTION 5.10. Change of Control. The Seller covenants that, as a
result of the acquisition of the Shares by the Purchaser, no party will be
relieved from its obligations under or entitled to terminate any material
agreement or arrangement with the Company, except for the redemption of the
shares of Preferred Stock contemplated hereby.
SECTION 5.11. Cash Distributions. The Seller covenants and agrees
that the Subsidiaries shall not make any cash distributions on equity or any
payments on debt, other than the scheduled payments of principal and interest or
distributions between or among the Subsidiaries, without the prior written
consent of the Purchaser.
ARTICLE VI
TAX MATTERS
SECTION 6.01. Preparation and Filing of Tax Returns; Payment of
Taxes. Until the Closing Date, the Seller (i) shall cause the Company and its
Subsidiaries to prepare and file (in each case, in a manner consistent with past
practice) on a timely basis all Tax Returns (including returns for estimated
Taxes) for the Company and its Subsidiaries which are due prior to the Closing
Date (taking into account extensions for timely filing that are granted or
allowed), but in the case of the Subsidiaries, only if such return first became
due to be filed after the Atlantic Closing Date, and the Seller has Knowledge
that such Tax Return is required to be filed, and (ii) shall make commercially
reasonable efforts to cause the Company's Subsidiaries to promptly prepare and
file all Tax Returns of the Subsidiaries which, to the Knowledge of Seller, are
delinquent and not yet filed as of the Atlantic Closing Date. The Seller shall
cause the Company and its Subsidiaries to timely pay all Taxes shown to be due
and payable on Tax Returns referred to in clause (i) of the preceding sentence,
and shall make commercially reasonable efforts to cause the Company and its
Subsidiaries promptly to pay tax obligations of the Subsidiaries which, to the
Knowledge of the Seller, are delinquent as of the Atlantic Closing Date.
SECTION 6.02. Transfer and Similar Taxes. Notwithstanding any other
provision of this Agreement to the contrary, the Purchaser shall be solely
responsible for paying all property, sales, use, privilege, transfer,
documentary, gains, stamp, duties, recording and similar Taxes and fees
(including any penalties, interest or additions) imposed upon any party in
connection with the transactions contemplated by this Agreement (collectively,
the "Transfer Taxes"). The Purchaser shall procure any stock transfer stamp
required by, and accurately file all necessary Tax Returns and other
documentation with respect to, any Transfer Tax.
SECTION 6.03. Tax Indemnification. (a) The Seller shall indemnify,
defend, and hold harmless the Purchaser Indemnified Parties (including the
Company and its Subsidiaries) from and against (i) any and all Taxes imposed on
any member (other than the
20
Company, Atlantic, the Atlantic Subsidiaries, General Aviation or the General
Aviation FBOs) of any affiliated, consolidated, unitary or other combined group
with which the Company, Atlantic, any Atlantic Subsidiary, General Aviation or
either General Aviation FBO files or has filed a Tax Return on a consolidated,
unitary or other combined basis with respect to the taxable period or portion
thereof beginning on the day following the Atlantic Closing Date or the General
Aviation Closing Date, respectively, through the Closing Date, except to the
extent such Taxes are attributable to the activities or properties of the
Company, Atlantic, Atlantic Subsidiaries, General Aviation or the General
Aviation FBOs (ii) any Taxes in the nature of penalties and interest imposed on
the Purchaser Indemnified Parties (including the Company and its Subsidiaries)
to the extent attributable to any breach of the representations contained in
Section 3.08 or covenants in Section 6.01 of this Agreement, (iii) any Taxes
attributable to the Relevant Period for the entity on which such Taxes are
imposed that are not Excluded Taxes and (iv) any loss, damage, liability or
expense (including reasonable fees for attorneys and other outside consultants)
incurred in contesting or otherwise in connection with any Taxes described in
clause (i), (ii) or (iii) of this Section 6.03(a).
(b) The Purchaser shall indemnify the Seller Indemnified Parties
against (i) any and all Taxes attributable to the activities or property of the
Company, Atlantic, the Atlantic Subsidiaries, General Aviation or the General
Aviation FBOs which any Seller Indemnified Party become liable by reason of
Treasury Regulation Section 1.1502-6 (or any similar provision of state, local
or foreign Tax Law) and (ii) any loss, damage, liability or expense (including
reasonable fees for attorneys and other outside consultants) incurred in
contesting or otherwise in connection with any Taxes described in clause (i) of
Section 6.03(a).
(c) The amounts payable or to be paid under this Section 6.03 (the
"Tax Indemnity Payments") shall be limited in aggregate amount to the General
Aviation Purchase Price with respect to Tax Indemnity Payments arising
principally out of the business of or otherwise related to General Aviation or
to the Atlantic Purchase Price with respect to any Tax Indemnity Payment arising
from any source other than General Aviation.
(d) All Indemnity Payments shall be paid in immediately available
funds within five (5) Business Days after the later of (i) receipt of a written
request from the party entitled to such Tax Indemnity Payment and (ii) the day
of payment of the amount that is the subject of the Tax Indemnity Payment by the
party entitled to receive such Tax Indemnity Payment.
SECTION 6.04. Contests. (a) After the Closing, each party shall
promptly notify the other parties in writing of any written notice of a proposed
assessment or claim in an audit or administrative or judicial proceeding, which,
if determined adversely to the taxpayer, would be grounds for indemnification
under Section 6.03; provided, however, that the failure to give such notice will
not affect any party's right to indemnification under this Agreement except to
the extent, if any, that, but for such failure, the indemnifying party would
have avoided the Tax Liability in question.
(b) In the case of an audit or administrative or judicial proceeding
(a "Contest") that relates to a Pre-Closing Period, the Seller shall have the
right, at its expense, to participate in and control the conduct of such
Contest, but only to the extent that such Contest
21
relates solely to a potential adjustment to Tax Liability for which the Seller
has acknowledged, in writing, its liability under Section 6.03 to hold the
Purchaser and the Company harmless against the full amount of any adjustment
which may be made as a result of such Contest. The Purchaser also may
participate in any such Contest, and, if the Seller does not assume the defense
of any such Contest, the Purchaser may defend the same in such manner as it may
deem appropriate, including settling such Contest after five days' prior written
notice to the Seller setting forth the terms and conditions of settlement.
Notwithstanding anything to the contrary contained in this Agreement, in the
event that issues relating to a potential adjustment for which the Seller has
acknowledged its liability in writing are required to be contested in the same
Contest as separate issues relating to a potential adjustment for which the
Purchaser would be liable, the Purchaser shall have the right, at its expense,
to control the Contest with respect to the latter issues.
(c) In the case of a Contest that relates to a Straddle Period, or
otherwise with respect to issues relating to a potential adjustment for which
both the Seller (as evidenced by its written acknowledgement of liability under
Section 6.03), on the one hand, and the Purchaser, on the other hand, could be
liable, (i) the Seller and the Purchaser may participate in the Contest, and
(ii) such Contest shall be controlled by that party which would bear the burden
of the greater portion of the sum of the adjustment and any corresponding
adjustments that may reasonably be anticipated for future taxable periods. The
principle set forth in this Section 6.04(c) also shall govern for purposes of
deciding any issue that must be decided jointly (including choice of judicial
forum) in situations in which separate issues are otherwise controlled under
this Article VI by the Purchaser and the Seller.
(d) Notwithstanding anything to the contrary herein, the Seller
shall not enter into any compromise or agree to settle any claim pursuant to a
Contest, which would materially adversely affect the Purchaser or the Company in
a taxable period ending after the Closing Date without the prior written consent
of the Purchaser.
SECTION 6.05. Miscellaneous. (a) From and after the date of this
Agreement, the Seller shall not, without the prior written consent of the
Purchaser, make, or cause or permit to be made, any Tax election that would
adversely affect the Company in a taxable period ending after the Closing Date.
(b) The Seller and its Affiliates shall provide the Purchaser with
such cooperation and information as the Purchaser reasonably may request in
connection with any Tax matters relating to the Company, including, without
limitation, the filing of any Tax Return or claim for refund, the determination
of any liability for Taxes or right to a refund of Taxes or the conduct of any
Contest in respect of Taxes. Such cooperation and information shall include,
without limitation, providing the Purchaser with copies of any relevant Tax
Returns, together with documents relating to rulings or other determinations by
taxing authorities.
(c) Notwithstanding any provisions in this Agreement to the
contrary, (i) the obligations of the Seller to indemnify and hold harmless the
Purchaser Indemnified Parties pursuant to this Article VI and (ii) the
representations and warranties contained in Section 3.08 shall terminate at the
close of business on the 90th day following the expiration of the applicable
22
statute of limitations with respect to the Tax Liabilities in question (giving
effect to any waiver, mitigation or extension thereof).
ARTICLE VII
INDEMNIFICATION
SECTION 7.01. Survival of Representations and Warranties. (a) The
representations and warranties of the Seller contained in Article III of this
Agreement shall survive the Closing until eighteen (18) months from the Closing;
provided, however, that (i) the representations and warranties made pursuant to
Sections 3.01, 3.02, 3.03 and 3.04 shall survive indefinitely and (ii) insofar
as any claim is made by the Purchaser for the breach of any representation or
warranty of the Seller contained in Article III hereof, which claim arises out
of allegations of personal injury or property damage suffered by any third party
on or prior to the Closing or attributable to products or inventory sold or
shipped, or activities or omissions that occur, on or prior to the Closing, such
representations and warranties shall, for purposes of such claim by the
Purchaser, survive until thirty calendar days after the expiration of the
applicable statute of limitations governing such claims. If written notice of a
claim has been given prior to the expiration of the applicable representations
and warranties by the Purchaser to the Seller, then the relevant representations
and warranties shall survive as to such claim, until such claim has been finally
resolved.
(b) The representations and warranties of the Purchaser contained in
Article IV of this Agreement shall survive the Closing until eighteen (18)
months from the Closing; provided, however, that the representations and
warranties made pursuant to Section 4.01 shall survive indefinitely. If written
notice of a claim has been given prior to the expiration of the applicable
representations and warranties by the Seller to the Purchaser, then the relevant
representations and warranties shall survive as to such claim, until such claim
has been finally resolved.
SECTION 7.02. Indemnification by the Seller. The Purchaser and its
Affiliates, officers, directors, employees, agents, successors and assigns (each
a "Purchaser Indemnified Party") shall be indemnified and held harmless by the
Seller for and against any and all Liabilities, losses, damages, claims, costs
and expenses, interest, awards, judgments and penalties (including attorneys'
and consultants' fees and expenses) actually suffered or incurred by them
(including any Action brought or otherwise initiated by any of them)
(hereinafter a "Loss"), arising out of or resulting from:
(a) the breach of any representation or warranty made by
the Seller contained in Article III of this Agreement; or
(b) the breach of any covenant or agreement by the Seller
contained in this Agreement.
For purposes of calculating the amount of Loss incurred by a Purchaser
Indemnified Party arising out of or resulting from a breach of a representation
or warranty, such representation or warranty shall be interpreted without giving
effect to any limitations or qualifications as to
23
"materiality" (including the word "material") or "Material Adverse Effect" set
forth therein. To the extent that the Seller's undertakings set forth in this
Section 7.02 may be unenforceable, the Seller shall contribute the maximum
amount that it is permitted to contribute under applicable Law to the payment
and satisfaction of all Losses incurred by the Purchaser Indemnified Parties.
The parties acknowledge and agree that the Seller shall not be liable to any
Purchaser Indemnified Party hereunder for any Loss arising solely from a breach
of any representation, warranty, covenant or agreement of Atlantic or the
shareholders of Atlantic contained in the Atlantic Stock Purchase Agreement.
SECTION 7.03. Indemnification by the Purchaser. The Seller and its
Affiliates, officers, directors, employees, agents, successors and assigns (each
a "Seller Indemnified Party") shall be indemnified and held harmless by the
Purchaser for and against any and all Losses, arising out of or resulting from:
(a) the breach of any representation or warranty made by
the Purchaser contained in Article IV of this Agreement; or
(b) the breach of any covenant or agreement by the
Purchaser contained in this Agreement.
To the extent that the Purchaser's undertakings set forth in this Section 7.03
may be unenforceable, the Purchaser shall contribute the maximum amount that it
is permitted to contribute under applicable Law to the payment and satisfaction
of all Losses incurred by the Seller Indemnified Parties.
SECTION 7.04. Limits on Indemnification. Notwithstanding anything to
the contrary contained in this Agreement, except with respect to claims relating
to Taxes and claims relating principally to General Aviation: (a) except as set
forth in clause (c) of this Section 7.04, an Indemnifying Party shall not be
liable for any claim for indemnification pursuant to Section 7.02 or 7.03,
unless and until the aggregate amount of indemnifiable Losses which may be
recovered from the Indemnifying Party equals or exceeds $1,000,000 (the "Basket
Amount"), after which the Indemnifying Party shall be liable for the amount of
such Losses in excess of the Basket Amount, (b) except as set forth in clause
(c) of this Section 7.04, the maximum amount of indemnifiable Losses which may
be recovered from an Indemnified Party arising out of or resulting from the
causes set forth in Section 7.02 or 7.03, as the case may be, shall be an amount
equal to $20,000,000, net of insurance proceeds and (c) notwithstanding the
foregoing, an Indemnifying Party shall be liable for all Losses arising out of
or resulting from a breach of any of the representations and warranties set
forth in Sections 3.01 through 3.04 and Section 3.08, with respect to the
Seller, and Section 4.01, with respect to the Purchaser, in each case up to a
maximum aggregate amount of indemnifiable Losses equal to the Atlantic Purchase
Price, net of insurance proceeds, and without regard to the cumulative
indemnification threshold set forth in clause (a) of this Section 7.04.
SECTION 7.05. Limits on Indemnification with respect to General
Aviation. Notwithstanding anything to the contrary contained in this Agreement,
except with respect to claims relating to Taxes and claims covered by Section
7.04: (a) except as set forth in clause (c) of this Section 7.05, an
Indemnifying Party shall not be liable for any claim for indemnification
24
pursuant to Section 7.02 or 7.03, unless and until the aggregate amount of
indemnifiable Losses which may be recovered from the Indemnifying Party equals
or exceeds $500,000 (the "General Aviation Basket Amount"), after which the
Indemnifying Party shall be liable for the amount of such Losses in excess of
the General Aviation Basket Amount, (b) except as set forth in clause (c) of
this Section 7.05, the maximum amount of indemnifiable Losses which may be
recovered from an Indemnified Party arising out of or resulting from the causes
set forth in Section 7.02 or 7.03, as the case may be, shall be an amount equal
to $7,500,000, net of insurance proceeds and (c) notwithstanding the foregoing,
an Indemnifying Party shall be liable for all Losses arising out of or resulting
from a breach of any of the representations and warranties set forth in Sections
3.01 through 3.04 and Section 3.08, with respect to the Seller, and Section
4.01, with respect to the Purchaser, in each case up to a maximum aggregate
amount of indemnifiable Losses equal to the General Aviation Purchase Price, net
of insurance proceeds, and without regard to the cumulative indemnification
threshold set forth in clause (a) of this Section 7.05.
SECTION 7.06. Tax Treatment. All amounts paid under the
indemnification provisions of this Agreement shall be treated as
adjustments to purchase price for all Tax purposes.
SECTION 7.07. Exclusive Remedy. The indemnification provisions set
forth in this Agreement are the exclusive remedies of the Purchaser and the
Seller arising out of or in connection with this Agreement and the transactions
contemplated hereby.
ARTICLE VIII
CONDITIONS TO CLOSING
SECTION 8.01. Conditions to Obligations of the Seller. The
obligations of the Seller to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment or written waiver by the Seller,
at or prior to the Closing, of each of the following conditions:
(a) Representations, Warranties and Covenants. (i) The
representations and warranties of the Purchaser contained in Article IV of
this Agreement shall have been true and correct when made and shall be
true and correct as of the Closing, except to the extent such
representations and warranties are as of a specified date, in which case,
such representations and warranties shall be true and correct as of that
date, in each case, with the same force and effect as if made as of the
Closing and (ii) the covenants and agreements contained in this Agreement
to be complied with by the Purchaser on or before the Closing shall have
been complied with in all material respects. The Seller shall have
received a certificate of the Purchaser to such effect signed by a duly
authorized executive officer;
(b) HSR Act. Any waiting period (and any extension thereof) under
the HSR Act applicable to the purchase of the Shares and the Business
contemplated by this Agreement shall have expired or shall have been
terminated; and
25
(c) No Proceeding or Litigation. No Action shall have been commenced
by or before any Governmental Authority against either the Seller or the
Purchaser, seeking to restrain or materially and adversely alter the
transactions contemplated by this Agreement which, in the reasonable, good
faith determination of the Seller, is likely to render it impossible or
unlawful to consummate such transactions; provided, however, that the
provisions of this Section 8.01(c) shall not apply if the Seller has
directly or indirectly solicited or encouraged any such Action.
(d) Release from Guaranty. Macquarie Bank Limited shall have been
released from its guaranty obligations pursuant to the General Aviation
Agreement.
SECTION 8.02. Conditions to Obligations of the Purchaser. The
obligations of the Purchaser to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment or written waiver by the
Purchaser, at or prior to the Closing, of each of the following conditions:
(a) Representations, Warranties and Covenants. (i) The
representations and warranties of the Seller contained in Article III of
this Agreement shall have been true and correct when made and shall be
true and correct as of the Closing except to the extent such
representations and warranties are as of a specified date, in each case,
such representations and warranties shall be true and correct as of that
date with the same force and effect as if made as of the Closing and (ii)
the covenants and agreements contained in this Agreement to be complied
with by the Seller on or before the Closing shall have been complied with
in all material respects. The Purchaser shall have received a certificate
of the Seller to such effect signed by a duly authorized executive
officer;
(b) HSR Act. Any waiting period (and any extension thereof) under
the HSR Act applicable to the purchase of the Shares and the Business
contemplated by this Agreement shall have expired or shall have been
terminated;
(c) No Proceeding or Litigation. No Action shall have been commenced
or threatened by or before any Governmental Authority against either the
Seller or the Purchaser, seeking to restrain or materially and adversely
alter the transactions contemplated by this Agreement which, in the
reasonable, good faith determination of the Purchaser, is likely to render
it impossible or unlawful to consummate such transactions; provided,
however, that the provisions of this Section 8.02(c) shall not apply if
the Purchaser has directly or indirectly solicited or encouraged any such
Action;
(d) Legal Opinion. The Purchaser shall have received from
Xxxx Xxxxxxx LLP a legal opinion, addressed to the Purchaser and
dated as of the Closing, in a form reasonably satisfactory to the
Purchaser;
(e) Consents and Approvals. The Purchaser and the Seller shall have
received, each in form and substance satisfactory to the Purchaser, all
authorizations, consents, orders and approvals of all Governmental
Authorities and officials and all third party consents and estoppel
certificates necessary for the consummation of the transactions
contemplated by this Agreement, including all third party consents
required under any
26
Material Contracts (as listed in Schedule 3.17 of the Atlantic Stock
Purchase Agreement or in Schedule 3.10 of the General Aviation Agreement),
as are listed in Section 8.02(e) of the Disclosure Schedule; provided that
those consents and estoppels indicated in Schedule 8.02 as having been
delivered to and accepted by the Purchaser have each been received by the
Seller and the Purchaser and are each in form and substance satisfactory
to the Purchaser in accordance with this clause (e), based on the
transactions as contemplated herein as of the date hereof.
(f) Financing. MIAT, Macquarie Infrastructure Assets LLC
and/or the Purchaser shall have successfully completed its initial public
offering of equity securities;
(g) Diligence Reports. All reports and memos concerning
the diligence conducted pursuant to the Atlantic Stock Purchase Agreement
and the General Aviation Agreement originally addressed to the Seller
shall have been readdressed to the Company;
(h) No Material Adverse Effect. No event or events shall
have occurred, or be reasonably likely to occur, which, individually or in
the aggregate, have, or could have, a Material Adverse Effect;
(i) Debt. The bridge debt financing in effect on the date hereof
provided by Macquarie Bank Limited or an Affiliate thereof to the Company
to finance the acquisition of Atlantic shall have been refinanced in full
with Debt (through Macquarie Bank Limited or otherwise) which shall be on
terms and conditions satisfactory to the Purchaser in its sole discretion;
and
(j) FBO - MC Resolution. Resolution satisfactory to the Purchaser of
the contractual conflicts resulting from simultaneous ownership by
Atlantic and AvPorts of FBOs and MCs, respectively, with respect to
Teterboro and Republic airports (to take into account the affiliated
status of AvPorts and Atlantic by virtue of common control). Purchaser
acknowledges that the resolution represented by (1) the Memorandum of
Understanding dated July 29, 2004 between the People of the State of New
York acting by and through the Department of Transportation, Macquarie
Aviation North America 2, Inc., and the Company; (2) the related
Indemnification Agreement dated July 29, 2004 providing for
indemnification by the Company for certain losses associated with
requirements of the MOU; and (3) the estoppel letter obtained from the
Port Authority of New York and New Jersey, dated June 4, 2004, with
respect to the Teterboro Airport constitute resolution satisfactory to the
Purchaser pursuant to this clause (j).
ARTICLE IX
TERMINATION, AMENDMENT AND WAIVER
SECTION 9.01. Termination. This Agreement may be
terminated at any time prior to the Closing:
(a) by the Purchaser if, between the date hereof and the Closing:
(i) an event or condition occurs that has resulted in a Material Adverse
Effect, (ii) any representations
27
and warranties of the Seller contained in Article III of this Agreement
shall not have been true and correct when made or as of their date, (iii)
the Seller shall not have complied with the covenants or agreements
contained in this Agreement to be complied with by it or (iv) the Seller,
the Company or any Subsidiary makes a general assignment for the benefit
of creditors, or any proceeding shall be instituted by or against the
Seller, the Company or any Subsidiary seeking to adjudicate any of them a
bankrupt or insolvent, or seeking liquidation, winding up or
reorganization, arrangement, adjustment, protection, relief or composition
of its debts under any Law relating to bankruptcy, insolvency or
reorganization;
(b) by either the Seller or the Purchaser if the Closing shall not
have occurred by March 31, 2005; provided, however, that the right to
terminate this Agreement under this Section 9.01(b) shall not be available
to any party whose failure to fulfill any obligation under this Agreement
shall have been the cause of, or shall have resulted in, the failure of
the Closing to occur on or prior to such date;
(c) by either the Purchaser or the Seller in the event the General
Aviation Agreement is terminated or any Governmental Authority shall have
issued an order, decree or ruling or taken any other action restraining,
enjoining or otherwise prohibiting the transactions contemplated by this
Agreement and such order, decree, ruling or other action shall have become
final and nonappealable; or
(d) by the mutual written consent of the Seller and the
Purchaser.
SECTION 9.02. Effect of Termination. In the event of termination of
this Agreement as provided in Section 9.01, this Agreement shall forthwith
become void and there shall be no liability on the part of either party hereto
except (a) as set forth in Sections 5.03 and 10.01 and (b) that nothing herein
shall relieve either party hereto from liability for any breach of this
Agreement.
ARTICLE X
GENERAL PROVISIONS
SECTION 10.01. Expenses. Except as otherwise specified in this
Agreement, all costs and expenses, including fees and disbursements of counsel,
financial advisors and accountants, incurred in connection with this Agreement
and the transactions contemplated by this Agreement shall be paid by the party
incurring such costs and expenses, whether or not the Closing shall have
occurred.
SECTION 10.02. Notices. All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given or made
(and shall be deemed to have been duly given or made upon receipt) by delivery
in person, by an internationally recognized overnight courier service, by
facsimile or registered or certified mail (postage prepaid, return receipt
requested) to the respective parties hereto at the following addresses (or at
such other address for a party as shall be specified in a notice given in
accordance with this Section 10.02):
28
(a) if to the Seller:
Macquarie Investment Holdings, Inc.
c/o Macquarie Bank Limited
0 Xxxxxx Xxxxx
Xxxxx 00
Xxxxxx, Xxxxxxxxx
XXX 0000
Telecopy: 011-61-2-8232-3656
Attention: Xxxxxxx Xxxxxxxxxxxxx
(b) if to the Purchaser:
Macquarie Infrastructure Assets Inc.
000 0xx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxx Xxxxxx
with a copy (which shall not constitute notice) to:
Shearman & Sterling LLP
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Telecopy: (000) 000-0000
Attention: Xxxxxxx X. Xxxxxxx, Esq.
SECTION 10.03. Public Announcements. Neither party hereto shall
make, or cause to be made, any press release or public announcement in respect
of this Agreement or the transactions contemplated hereby (excluding disclosure
in any filing with the Securities and Exchange Commission in connection with the
initial public offering of equity securities of MIAT or any of its subsidiaries)
or otherwise communicate with any news media without prior notification to the
other party, and the parties hereto shall cooperate as to the timing and
contents of any such press release, public announcement or communication.
SECTION 10.04. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any Law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect for so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to either party hereto. Upon such determination that
any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as
to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are
consummated as originally contemplated to the greatest extent possible.
SECTION 10.05. Entire Agreement. This Agreement constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof
and supersedes all prior
29
agreements and undertakings, both written and oral, between the Seller and the
Purchaser with respect to the subject matter hereof.
SECTION 10.06. Assignment. This Agreement may not be assigned by
operation of law or otherwise without the express written consent of the Seller
and the Purchaser (which consent may be granted or withheld in the sole
discretion of the Seller or the Purchaser); provided, however, that the
Purchaser may assign this Agreement or any of its rights and obligations
hereunder to a wholly owned Subsidiary of the Purchaser without the consent of
the Seller.
SECTION 10.07. Amendment. This Agreement may not be amended or
modified except (a) by an instrument in writing signed by, or on behalf of, the
Seller and the Purchaser or (b) by a waiver in accordance with Section 10.08.
SECTION 10.08. Waiver. Either party to this Agreement may (a) extend
the time for the performance of any of the obligations or other acts of the
other party, (b) waive any inaccuracies in the representations and warranties of
the other party contained herein or in any document delivered by the other party
pursuant hereto or (c) waive compliance with any of the agreements of the other
party or conditions to such party's obligations contained herein. Any such
extension or waiver shall be valid only if set forth in an instrument in writing
signed by the party to be bound thereby. Any waiver of any term or condition
shall not be construed as a waiver of any subsequent breach or a subsequent
waiver of the same term or condition, or a waiver of any other term or condition
of this Agreement. The failure of either party hereto to assert any of its
rights hereunder shall not constitute a waiver of any of such rights. All rights
and remedies existing under this Agreement are cumulative to, and not exclusive
of, any rights or remedies otherwise available.
SECTION 10.09. No Third Party Beneficiaries. Except for the
provisions of Article VII relating to indemnified parties, this Agreement shall
be binding upon and inure solely to the benefit of the parties hereto and their
respective successors and permitted assigns and nothing herein, express or
implied, is intended to or shall confer upon any other Person, including any
union or any employee or former employee of the Seller, any legal or equitable
right, benefit or remedy of any nature whatsoever, including any rights of
employment for any specified period, under or by reason of this Agreement.
SECTION 10.10. Waiver of Jury Trial. Each of the parties hereto
hereby waives to the fullest extent permitted by applicable Law any right it may
have to a trial by jury with respect to any litigation directly or indirectly
arising out of, under or in connection with this Agreement or the transactions
contemplated by this Agreement. Each of the parties hereto hereby (a) certifies
that no representative, agent or attorney of the other party has represented,
expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it
has been induced to enter into this Agreement and the transactions contemplated
by this Agreement, as applicable, by, among other things, the mutual waivers and
certificates in this Section 10.10.
SECTION 10.11. Governing Law. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York applicable
to contracts executed
30
in and to be performed in that State. All Actions arising out of or relating to
this Agreement shall be heard and determined exclusively in any New York federal
court sitting in the Borough of Manhattan of The City of New York, provided,
however, that if such federal court does not have jurisdiction over such Action,
such Action shall be heard and determined exclusively in any New York state
court sitting in the Borough of Manhattan of The City of New York. Consistent
with the preceding sentence, the parties hereto hereby (a) submit to the
exclusive jurisdiction of any federal or state court sitting in the Borough of
Manhattan of The City of New York for the purpose of any Action arising out of
or relating to this Agreement brought by any party hereto and (b) irrevocably
waive, and agree not to assert by way of motion, defense, or otherwise, in any
such Action, any claim that it is not subject personally to the jurisdiction of
the above-named courts, that its property is exempt or immune from attachment or
execution, that the Action is brought in an inconvenient forum, that the venue
of the Action is improper, or that this Agreement or the transactions
contemplated by this Agreement may not be enforced in or by any of the
above-named courts.
SECTION 10.12. Counterparts. This Agreement may be executed and
delivered (including by facsimile transmission) in one or more counterparts, and
by the different parties hereto in separate counterparts, each of which when
executed shall be deemed to be an original, but all of which taken together
shall constitute one and the same agreement.
31
IN WITNESS WHEREOF, the Seller and the Purchaser have caused this
Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.
MACQUARIE INVESTMENT HOLDINGS, INC.
By: /s/ Xxxxxxxxxxx Xxxxxx
--------------------------------
Name: Xxxxxxxxxxx Xxxxxx
Title: Director
By: /s/ Xxxxxx Bleach
--------------------------------
Name: Xxxxxx Bleach
Title: Director
MACQUARIE INFRASTRUCTURE ASSETS INC.
By: /s/ Xxxxx Xxxxxx
--------------------------------
Name: Xxxxx Xxxxxx
Title: Chief Executive Officer
SECTION 3.03
------------
SUBSIDIARIES
Following the Atlantic Closing Date, the Company formed two new subsidiaries,
FLI Subsidiary, LLC, a Delaware limited liability company wholly owned by
Flightways of Long Island, Inc., and AAC Subsidiary, LLC, a Delaware limited
liability company wholly owned by Atlantic Aviation Corporation; and caused
Aircraft Leasing, Inc., Aircraft R US, Inc., Aircraft Rentals, Inc., and Katana
Leasing Corp. to be merged with and into FLI Subsidiary, LLC, and Atlantic
Aviation Aircraft Support Group, Inc., and Atlantic Aviation Aircraft Sales,
Inc. to be merged with and into AAC Subsidiary LLC.
SECTION 3.06
------------
CONSENTS AND APPROVALS
1. Reference is made to Section 3.3 and Section 3.4 of the
disclosure schedule of the Atlantic Stock Purchase Agreement.
2. Reference is made to Section 3.3 of the disclosure schedule of
the General Aviation Agreement.
SECTION 3.08
------------
TAXES
None.
SECTION 3.09
------------
STOCK PURCHASE AGREEMENT AMENDMENTS
None.
SECTION 4.03
------------
CONSENTS AND APPROVALS
None.
SECTION 5.01
------------
CONDUCT OF BUSINESS PRIOR TO THE CLOSING
Reference is made to Section 3.03.
SECTION 8.02(e)
---------------
CONSENTS AND APPROVAL
1. Reference is made to Schedule 3.3 and Schedule 3.4 of the
disclosure schedule of the Atlantic Stock Purchase
Agreement.
2. Reference is made to Schedule 3.3 of the disclosure
schedule of the General Aviation Agreement.
DELIVERED TO AND ACCEPTED BY THE PURCHASER
1. Estoppel letter dated June 4, 2004 from The Port of
Authority of NY & NJ, as lessor, to Macquarie Bank
Limited, Macquarie Holdings (USA), Inc. and Macquarie
Investment Holdings, Inc.
2. Estoppel letter dated June 15, 2004 from The State of
Connecticut, Department of Transportation to Macquarie
Bank Limited, Macquarie Holdings (USA), Inc. and
Macquarie Investment Holdings, Inc.
3. Consent letter dated July 15, 2004 from the City of
Chicago, Department of Aviation, to Macquarie Bank
Limited and Macquarie Investment Holdings, Inc.
4. Estoppel letter dated July 6, 2004 from the City of
Philadelphia to Macquarie Investment Holdings, Inc.
5. Letter from Executive Air Support, Inc. dated June 18,
2004 with consent from CB Parkway Business Center IV,
Ltd. attached.
6. Estoppel letter dated June 7, 2004 from the City of
Houston to Macquarie Bank Limited, Macquarie Holdings
(USA), Inc. and Macquarie Investment Holdings, Inc.
7. Letter dated June 25, 2004 from the City of Bridgeport as to
Executive Air Support, Inc.'s being current in rent and not in
default under its lease with the City of Bridgeport.
8. Minutes of the Airport Commission dated July 13, 2004,
approving the acquisition of Executive Air Support, Inc.
by a Macquarie Infrastructure Trust-led investment group
and the issuance of an estoppel letter.
9. Estoppel letter dated May 28, 2004 from The Board of Commissioners
of the Orleans Levee District to Macquarie Bank Limited,
Macquarie Holdings (USA), Inc. and Macquarie Investment Holdings,
Inc.
10. Estoppel letter dated May 27, 2004 from the New Orleans Aviation
Board to Macquarie Bank Limited, Macquarie Holdings (USA), Inc.
and Macquarie Investment Holdings, Inc.
11. Estoppel letter dated July 29, 2004 from the State of New York
Department of Transportation to Macquarie Bank Limited, Macquarie
Holdings (USA), Inc. and Macquarie Investment Holdings, Inc.
